2021 (4) TMI 692 - HC - Customs

Violation of principles of Natural justice - opportunity of hearing not granted - Revocation of Custom Duty Exemption Certificate (CDEC) - import of certain medical equipments exempt from customs duty by N/N. 64/88-Cus. Dated 1.3.1988 - consideration of the decision in the case of Sir Gangaram Trust Society and another Vs. Union of India and Others 2007 (10) TMI 645 - SUPREME COURT - HELD THAT - A plain reading of the Order passed by the first respondent clearly shows that proper opportunity has not been granted by the first respondent to the appellants in considering their case - The documents which were furnished by the appellants to the first respondent before this court, which are annexed to the Appeal Memorandum running approximately 200 documents have not been mentioned in the Order passed by the first respondent, let alone being considered or discussed. The Order passed by the Hon'ble Apex Court in Gangaram's case clearly mentioned that the first respondent was duty bound to consider the case of the appellant in accordance with law. Further, the first respondent was a party before this court in Writ Appeal. When this court has clearly passed an order referred, it was for the first respondent to consider the case of the appellant judiciously by affording opportunity for the appellant to establish that they have complied with all the eight conditions and therefore, they were entitled for the exemption of the customs duty. The first respondent has not considered the case of the appellants or not even discussed the materials placed by the appellants before it. The first respondent being the quasi judicial authority was duty bound to consider the materials placed before it in its proper perspective and should have passed a speaking order assigning the reasons - the first respondent has failed to do so in the case on hand. Appeal allowed - decided in favor of appellant.

Summary

Issues:
Challenge to revocation of Custom Duty Exemption Certificate (CDEC) for medical equipment import under Notification No.64/88-Cus. Proper consideration of case by the first respondent in light of the Supreme Court's order in Gangaram Trust's Case.

Revocation of Custom Duty Exemption Certificate:
The Writ Appeals challenged the revocation of the CDEC for importing medical equipment under Notification No.64/88-Cus. The appellants, including a society running a hospital, imported equipment for medical purposes and held a valid CDEC. However, the Deputy Director General (Medical) revoked the CDEC, leading to legal challenges. Previous legal proceedings, including Writ Appeal No.2378-79/1999, highlighted disputes over customs duty exemptions and the cancellation of certificates. The appellants argued that they followed all requirements for the CDEC issuance.

Proper Consideration of Case:
The central issue was whether the first respondent considered the appellants' case adequately in light of the Supreme Court's order in Gangaram Trust's Case. The appellants contended that the first respondent did not grant proper opportunity to present their case and did not consider the documents submitted. The Court noted that the first respondent failed to mention or discuss the 200 documents submitted by the appellants. The first respondent's order did not reflect a judicious consideration of the appellants' compliance with conditions for customs duty exemption.

Judgment:
Upon review, the Court found that the first respondent did not give due consideration to the appellants' case, leading to a miscarriage of justice. The Court set aside the Single Judge's order and remitted the matter back to the first respondent for a fresh consideration in accordance with the law. The Court emphasized the importance of the first respondent providing a speaking order, discussing all documents and grounds raised by the appellants. The Writ Appeals were allowed without costs, directing a reevaluation of the case by the first respondent.