2011 (7) TMI 1085 - AT - Central Excise

Summary

Issues involved: Stay petition for waiver of pre-deposit of duty amount, interest, and penalty; violation of natural justice in confirming duty demand without proper hearing.

Violation of Natural Justice Issue:
The appellant filed a Stay Petition seeking waiver of pre-deposit of duty amount, interest, and penalty totaling &8377; 71,70,599. The appellant's counsel argued that the adjudicating authority confirmed the duty demand without following natural justice principles. The counsel pointed out that the appellant had informed the authority about the receipt of the hearing notice after the order was already passed. The counsel contended that the entire order was based solely on electricity consumption without corroborative evidence, necessitating a stay of the demand.

Response of JDR:
The JDR, however, highlighted that the appellants were given multiple opportunities for personal hearings but delayed or failed to respond adequately. The JDR mentioned that the appellant sought adjournments on previous occasions and did not reply to the show cause notice. Due to the lack of response from the appellant, the adjudicating authority proceeded to pass the order.

Decision and Directions:
After considering both sides, the Tribunal found the appellant negligent in not responding to the show cause notice and seeking adjournments. Despite this, the Tribunal noted a violation of natural justice in the order. To ensure fairness, the Tribunal directed the appellant to pre-deposit &8377; 15,00,000 within eight weeks and submit compliance by a specified date. The appellant was also instructed to file a reply to the show cause notice within four weeks. The adjudicating authority was directed to reconsider the matter upon compliance with the pre-deposit condition. Consequently, the Stay Petition and Appeal were disposed of through remand for further proceedings.

This summary provides a detailed breakdown of the issues involved in the legal judgment, focusing on the violation of natural justice and the subsequent decision and directions given by the Tribunal.