2017 (5) TMI 1233 - HC - Customs

Violation of principles of natural justice - Valuation - Glass Chaton (Beads) Crystal of different sizes - Held that - there is no reference to any submission on behalf of the petitioner nor is there anything to indicate that any opportunity of hearing has been given to the petitioner - the impugned order has been passed ex parte without affording any opportunity of hearing to the petitioner and hence is clearly in breach of the principles of natural justice which renders the same unsustainable - petition allowed - decided in favor of petitioner.

Summary

Issues:
Challenge to order enhancing assessable value of goods without affording opportunity of personal hearing and violating principles of natural justice.

Analysis:
The petition challenged an order-in-original passed by the Deputy Commissioner of Customs, ICD Khodiyar, Gandhinagar, which enhanced the assessable value of Glass Chaton (Beads) Crystal. The petitioner filed multiple Bill of Entries for similar goods and objected to the enhancement of value without being provided with comparable data or documents justifying the increase. Despite the petitioner's requests for a personal hearing and submission of documents, the impugned order was passed ex parte without granting any opportunity of hearing, violating the principles of natural justice.

The petitioner contended that the impugned order was passed in clear violation of natural justice and requested the court to quash the order, set it aside, and remand the matter to the adjudicating authority for a fresh decision after affording the petitioner an opportunity of hearing. The petitioner also sought permission to clear the Bills of Entry during the proceedings by furnishing a bond for the differential amount of duty.

On the other hand, the respondents argued that the petitioner's request for a personal hearing was received after the assessment was finalized, and hence, no interference was warranted. However, the court observed that despite the petitioner's requests for a personal hearing, the impugned order was passed ex parte without any opportunity of hearing, rendering it unsustainable due to the breach of natural justice principles.

The court held that the impugned order was unsustainable and in breach of natural justice principles. The court allowed the petition, quashed the order-in-original, and restored the proceedings to the adjudicating authority for a fresh decision after granting a reasonable opportunity of hearing to the petitioner. The petitioner was permitted to provisionally clear Bills of Entry by furnishing a bond for the full amount of differential duty and a bank guarantee as per the Customs Act, 1962. The rule was made absolute with no order as to costs, and direct service was permitted.