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2014 (9) TMI 144 - GUJARAT HIGH COURTPrinciple of natural justice - Whether Betel Nut - Industrial Grade imported by the petitioner are permissible for import under the Duty Free Import Authorization (DFIA) Scheme under the Foreign Trade Policy (FTP) read with the Standard Input Output Norms (SION) thereunder, and are entitled to exemption under Customs Notification No. 40/2006, dated 1-5-2006 - Held that:- Taking the second ground first, the principles of natural justice are not to be observed on paper only. Its importance lies in its effective compliance. It does not lie in the mouth of the authority that it has complied with the principles of natural justice when the authority called upon the party to remain present on 10-5-2011, wherein notice was served on the party on 6-5-2011 and when the party prays for time on 10-5-2011, the authority proceeded to pass final assessment order on 12-5-2011. Intimating to the party the date of hearing that by itself cannot be said to be in compliance of the principles of natural justice. It is step towards compliance of natural justice. Intimation of date of hearing to the party affected is initial part of compliance of principles of natural justice as the “hearing” is inevitable aspect of natural justice. Intimation is not “hearing”. - order passed on 12-5-2011 is vitiated, as it is passed without complying with the principles of natural justice. - Decided in favor of assessee. Validity of panchnama-cum-seizure order - Held that:- The seizure order dated 29-12-2010 is also bad and illegal. It is the panchnama-cum-seizure order. Such composite order is unheard off. - Technically, asking the party to submit fresh PD Bonds for a period of six months on one hand and proceeding to seize the goods on the other hand may not perhaps be faulted with, however, burden lies on the authority to explain rationale to rush into seizure/confiscation of the goods in such circumstances, the reason is the ‘proper officer’ cannot proceed to seize the goods under Section 110 of the Act unless he has reason to believe. - Unexplained inconsistent conduct makes dent on the belief. It would shake the basis and vitiate the seizure. We had a privilege to have a brief journey into the world of ‘Areca nut/betel nut’. Parties have produced some material in support of their respective submissions, viz. on ‘tannin’ contents of ‘Areca nut’. It was pointed out that ‘Areca nut’ may be dry, hard, whole or cut or it may be fresh, green, soft, etc. That it undergoes three stages of development. It was asserted by the respondent that the ‘Areca nut’ cannot be commercially viable for the ‘tannin’ purposes. It is not for this Court to give any opinion on ‘tannin’ content of Areca nut or to say about propriety of reading Areca nut in SION. It is for the D.G.F.T. to say on this. The say of the D.G.F.T. is in favour of the petitioner. - Decided in favor of assessee.
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