2013 (12) TMI 1532 - HC - Customs

Summary

Issues involved:
The judgment deals with the issue of permission for conversion of Bills of Export from Duty Free Import Authorization (DFIA) to Duty Exemption Entitlement Passbook (DEPB) for a company engaged in manufacturing and exporting various products. The main question is whether the authority correctly denied the conversion permission based on the fulfillment of conditions of Customs Circular and related procedures.

Comprehensive details for each issue:
1. Factual Background and Legal Proceedings:
The petitioner, engaged in manufacturing and exporting various products, sought permission to convert Bills of Export from DFIA to DEPB after fulfilling export obligations. The matter was initially rejected by the Authorized Officer, then confirmed by the Commissioner of Customs, and subsequently remanded by CESTAT to the jurisdictional Commissioner for re-examination.

2. Jurisdictional Dispute:
The petitioner approached the Commissioner of Customs for conversion as directed by CESTAT. However, the second respondent issued orders denying conversion, stating non-fulfillment of conditions without notice to the petitioner. The legality of the second respondent's jurisdiction to pass such orders was challenged.

3. Natural Justice and Opportunity of Hearing:
The judgment emphasized the importance of natural justice and the right to be heard before adverse orders are passed. Citing Supreme Court precedents, it highlighted the necessity of providing a genuine opportunity for affected parties to present their case before any decision is made.

Conclusion:
The Madras High Court quashed the individual orders denying conversion and remitted the matter to the second respondent for fresh consideration. The court directed the second respondent to issue a notice to the company and make a decision based on merit and law. The writ petitions were allowed without imposing any costs.