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Issues Involved:
1. Withdrawal of Brand Rate Drawback 2. Violation of Principles of Natural Justice 3. Alleged Irregularities in Drawback Claims 4. Non-supply of Re-verification Report 5. Justification of Withdrawal of Drawbacks Issue-wise Detailed Analysis: 1. Withdrawal of Brand Rate Drawback: The appellant, a company engaged in the export of finished leather, had applied for and was granted Brand Rate Drawback for various periods between 1979 and 1985. However, following an investigation by the Directorate of Revenue Intelligence (DRI), the authorities withdrew the granted drawbacks, alleging that the appellant's applications did not reflect the actual consumption of materials and that there were irregularities in the claims. The appellant contested this withdrawal, arguing that it had never conceded to any irregularities and that the withdrawals were not in keeping with the rules. 2. Violation of Principles of Natural Justice: The appellant argued that it was not supplied with the re-verification report drawn by the DRI, which was the basis for the action taken against it. Additionally, the appellant claimed it was not granted an opportunity to be heard before the withdrawal of the drawbacks, thus violating the principles of natural justice. The appellant also contended that the orders were based on unverified information about other exporters inflating their claims, which was not applicable to them. 3. Alleged Irregularities in Drawback Claims: The respondents justified their action by stating that widespread irregularities were found among finished leather exporters, who had inflated their consumption data to claim excessive drawbacks. The respondents pointed out that the appellant failed to produce documentary evidence to prove the consumption of imported chemicals and raw materials used exclusively for export. The discrepancies noted by the investigating agency were shown to the appellant, who endorsed having seen them but responded in general terms rather than specifically addressing the issues. 4. Non-supply of Re-verification Report: The appellant complained that the re-verification report, which was crucial for the withdrawal of drawbacks, was not furnished at the time of hearing or before the impugned order was passed. The court directed the department to serve the re-verification report on the appellant, who then filed a supplementary affidavit reiterating that the full report was not made available. The learned single Judge found that the objection regarding the non-supply of appendices and annexures was not valid, as the appellant had endorsed entries in the annexures related to the discrepancies. 5. Justification of Withdrawal of Drawbacks: The learned single Judge concluded that the drawbacks were justifiably withdrawn, noting that the principles of natural justice could not be extended mechanically. The court found that the department had taken pains to verify the correctness of the appellant's claims and that there was no proof of the percentage of imported chemicals used for exported finished leather. The learned single Judge also observed that the authorities were entitled to seek proper proof to grant concessions and that there was no question of grievance if no proof of duty sufferance was provided. Conclusion: The court upheld the withdrawal of the Brand Rate Drawback, finding no error in the learned single Judge's findings. The court noted that the re-verification report, though supplied later, did not cause prejudice to the appellant, as the appellant had the opportunity to respond and argue the matter in detail. The court dismissed the writ appeal, concluding that the appellant's claims lacked merit and that the principles of natural justice were adequately observed.
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