2006 (2) TMI 632 - HC - Central Excise

Summary

Issues: Challenge to tribunal orders, condonation of delay, violation of principles of natural justice

Challenge to Tribunal Orders:
The petition challenged orders passed by the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) and the Commissioner (Appeals), Central Excise & Customs. The petitioners sought to challenge the Order-in-Appeal passed by the Commissioner (Appeals) on the grounds of delay in filing the appeal before CESTAT and violation of principles of natural justice. The petitioners contended that they were not aware of the Order-in-Appeal due to the ill-health and subsequent demise of the individual handling the matter, leading to a delay in filing the appeal.

Condonation of Delay:
The petitioners filed an appeal before CESTAT challenging the Order-in-Appeal after discovering it through communications from the Range Superintendent. However, CESTAT declined to condone the delay of 455 days and dismissed the appeal. The petitioners submitted various reasons for the delay, emphasizing that there was no willful default on their part and that they had not received any notice of personal hearing from the Commissioner (Appeals). The petitioners sought to explain the circumstances that led to the delay in filing the appeal.

Violation of Principles of Natural Justice:
The High Court noted that the Order-in-Appeal passed by the Commissioner (Appeals) was issued without affording the petitioners an opportunity of hearing, thus violating the principles of natural justice. The respondents were unable to provide evidence of serving a notice of hearing to the petitioners. Consequently, the Court held that the Order-in-Appeal was vitiated on the grounds of breach of principles of natural justice. The Court quashed the Order-in-Appeal and directed the matter to be restored to the file of the Commissioner (Appeals) for a fresh decision after providing the petitioners with a proper opportunity of hearing. Additionally, the Tribunal orders were also quashed and set aside in light of the violation of natural justice.

In conclusion, the High Court allowed the petition, quashed the impugned orders, and directed the Commissioner (Appeals) to re-examine the matter after affording the petitioners a fair opportunity of hearing. The Court emphasized the importance of upholding principles of natural justice in administrative and appellate proceedings.