2007 (6) TMI 426 - AT - Central Excise

Summary

Issues involved: Violation of principles of natural justice due to non-service of show cause notice and relied upon documents.

Analysis:

1. Non-service of show cause notice: The appellant's advocate highlighted that the appellant did not receive a copy of the show cause notice or the relied upon documents. This lack of service hindered the appellant's ability to present their case effectively before the Tribunal and lower authorities. The order-in-appeal mentioned the issuance of the show cause notice but did not address the appellant's claim of non-receipt. The appellant consistently argued before the Commissioner (Appeals) that the order-in-original was passed without giving them an opportunity to represent their case or provide evidence, violating principles of natural justice.

2. Legal provisions and principles: The judgment referred to Section 37C of the Central Excise Act, 1944, which outlines the requirements for serving decisions, orders, summons, or notices. It mandates that such documents should be served by tendering, sending by registered post, or affixing copies at specific locations. The judgment emphasized that the notice must be served on the appellants as per the provisions of Section 37C. Failure to serve the notice to the appellant constitutes a violation of natural justice.

3. Direction to lower authorities: Given that the issue dated back to 1993, the Tribunal issued a time-bound directive to the adjudicating authority. The lower authority was instructed to provide the appellants with a copy of the show cause notice and related documents within 12 weeks. The appellants were then required to respond within three weeks of receiving the notice. Subsequently, the adjudicating authority was directed to grant a personal hearing to the appellant and decide on the matter within four weeks of receiving the reply to the show cause notice.

4. Remand and decision: The judgment set aside the impugned order and remanded the case back to the original adjudicating authority. The authority was instructed to follow the specified directions, provide a fair opportunity for the appellant to present their case, and make a decision based on merits. The appeal was allowed by way of remand, ensuring that the principles of natural justice were upheld in the proceedings.