Natural justice in fiscal appeals: failure to consider objections and hear the importer led to remand for fresh decision.

An appellate order confirming fiscal liability without properly considering the importer's objections to lack of prior notice and alleged non-breach of exemption conditions was held to be vitiated by breach of natural justice. The authority's failure to deal with the grounds urged and to give a reasonable opportunity of hearing rendered the demand unsustainable. The impugned order was set aside and the matter remanded to the Commissioner (Appeals) for fresh disposal on merits after hearing the appellant.

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Issues: Whether the order enforcing the bond and demanding differential duty was unsustainable for breach of natural justice in the absence of proper consideration of the appellant's objections.

Analysis: The importer's challenge before the appellate authority raised two substantive objections: absence of prior notice and absence of any breach of the exemption conditions. The appellate authority did not deal with these objections in a reasoned manner and instead proceeded to confirm liability by a brief finding. The omission to examine the grounds urged and to afford a fair opportunity before sustaining the demand amounted to disregard of the elementary principles of natural justice.

Conclusion: The impugned order could not be sustained and was set aside. The matter was remanded to the Commissioner (Appeals) for fresh disposal after giving the appellant a reasonable opportunity of being heard.

Final Conclusion: The demand order was annulled on procedural grounds, and the appellate proceedings were restored for a fresh decision on merits.

Ratio Decidendi: An appellate order confirming fiscal liability without duly considering the objections raised and without affording a reasonable opportunity of hearing is vitiated by breach of natural justice and must be set aside for fresh adjudication.

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