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Issues:
Assessment of customs duty based on enhanced assessable value without affording the petitioner an opportunity to be heard, Violation of principles of natural justice in the assessment process, Determination of assessable value as a quasi-judicial function, Consequences of denial of natural justice in administrative inquiries, Legality of the impugned order of assessment. Analysis: The petitioner, a company engaged in manufacturing plywood products, entered into an agreement to purchase phenol 99% from a Japanese supplier. The customs authorities arbitrarily enhanced the assessable value of the imported phenol, leading to an increased customs duty payment by the petitioner. The petitioner paid the duty under protest and sought relief through a writ petition, alleging a lack of opportunity to present their case before the assessment. The respondents contended that the assessment was based on comparable prices and supported by sufficient reasons, denying any violation of natural justice principles. The High Court analyzed the nature of the assessment process, citing precedents that established the assessment of duty as a quasi-judicial function. The court emphasized that the denial of an opportunity to be heard before enhancing the assessable value violates the principles of natural justice. Referring to previous judgments, the court highlighted that administrative decisions with civil consequences must adhere to natural justice rules. The court noted that the customs authorities failed to provide the petitioner with a fair hearing before imposing additional duty, rendering the impugned order of assessment invalid. The court reiterated that denial of natural justice amounts to a miscarriage of justice, emphasizing that the availability of an appeal does not cure the lack of fair hearing. Citing a Supreme Court ruling, the court held that even if an appeal route exists, the High Court can intervene to correct orders made in violation of natural justice. Consequently, the court set aside the impugned assessment order due to its infringement of natural justice principles, allowing the customs authorities to conduct a fresh assessment in compliance with the law. In conclusion, the writ petition succeeded, and the rule was made absolute, with no order as to costs. The customs authorities were directed to conduct a new assessment within 90 days while staying the operation of the order for two weeks. The parties were instructed to act on a signed copy of the order's operative part, ensuring compliance with the court's directions.
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