2005 (9) TMI 94 - HC - Customs

Summary

Issues:
1. Withdrawal of eligibility certificate for duty exemption on imported medical equipment.
2. Violation of principles of natural justice by the respondent authorities.

Analysis:
The petitioner, a society engaged in scientific research and treatment based on Naturopathy and Yoga, imported medical equipment under an eligibility certificate issued by the respondent authorities. However, nearly a decade later, the authorities withdrew the eligibility certificate without issuing a show cause notice or providing an opportunity for a hearing. The petitioner contended that the withdrawal order was in violation of principles of natural justice as it was done without due process.

The High Court noted that the petitioner had indeed imported machinery under the eligibility certificate and that customs duty had been exempted accordingly. The respondent authorities, however, alleged non-compliance with the terms and conditions of the notification, leading to the withdrawal of the eligibility certificate. The Court emphasized that the authorities should have followed the principles of natural justice by issuing a show cause notice and providing an opportunity for a hearing before passing the withdrawal order. The Court held that failure to do so amounted to a violation of natural justice principles.

Consequently, the High Court allowed the writ petition, setting aside the impugned order of withdrawal of the eligibility certificate dated 31-10-2000. The Court reserved the liberty for the respondent authorities to pass a fresh order, provided they issue an appropriate show cause notice to the petitioner society and afford them a reasonable opportunity of hearing. The Court left all other contentions of the petitioner open for further consideration.