2009 (6) TMI 755 - AT - Customs

Natural justice - Hearing - Opportunity of being heard - Adjudication - principles of natural justice - Section 122A of the Customs Act, 1962

Summary

Issues: Failure to provide opportunity of being heard by the Commissioner.

Detailed Analysis:

Issue 1: Failure to provide opportunity of being heard by the Commissioner
The judgment revolves around the failure of the Commissioner to provide the appellants with a fair opportunity to be heard. The Advocate for the appellants had requested adjournments for the hearing, firstly for preponement and subsequently for postponement. Despite these requests, the Commissioner proceeded ex parte and passed an order without granting the requested adjournment. The learned Advocate argued that under Section 122A of the Customs Act, 1962, three adjournments are allowed, but in this case, only two were granted. The statute allows adjournments based on sufficient cause shown, with a maximum of three times per party during the proceedings. However, the discretion to grant adjournments lies with the adjudicating authority, based on the merits of each case. In this instance, the Commissioner's decision to proceed ex parte without granting another opportunity for the appellants to be heard was deemed a violation of natural justice principles.

Conclusion:
The Appellate Tribunal found merit in the appellants' grievance regarding the failure of the authority to comply with the principles of natural justice. As a result, the impugned order was set aside, and the matters were remanded to the Commissioner for a fresh decision after hearing the parties. The parties were instructed to appear before the Commissioner on a specified date to facilitate the proceedings. The judgment highlights the importance of providing parties with a fair opportunity to present their case and emphasizes the need for adjudicating authorities to adhere to principles of natural justice in administrative proceedings.