2005 (2) TMI 558 - AT - Central Excise

Summary

Issues involved: Violation of principles of natural justice in adjudication order.

Analysis:
The case involved an appeal filed by the Revenue against a common order passed by the Commissioner of Central Excise. The respondents, engaged in the manufacture of Generic Medicines and P.P. Medicines, were issued a show cause notice for clearing goods without payment of duty after crossing the limit under Small Scale Exemption Notification. The adjudicating authority confirmed a demand of Rs. 1772632/- and imposed penalties. The respondents appealed before the Commissioner (Appeals), who allowed the appeals on the ground that the adjudication order violated the principles of natural justice.

The Revenue contended that the adjudication authority had granted multiple dates for personal hearing, and notices were served on the respondents. Despite this, the respondents did not appear or file any reply. The Revenue argued that the respondents were allowed to inspect documents and obtain photocopies, and all documents were provided. Therefore, the Revenue claimed that the finding of the Commissioner (Appeals) on the violation of natural justice was not sustainable.

The Tribunal found that the adjudicating authority had fixed multiple dates for personal hearing and made efforts to inform the respondents. Even though the respondents were allowed to inspect documents and obtain photocopies, they did not respond or appear before the authority. The Tribunal concluded that the Commissioner (Appeals) had not decided the appeal on merits and remanded the matter back to the Commissioner to decide after affording an opportunity of personal hearing to the respondents. The appeals were disposed of by way of remand.