1998 (9) TMI 654 - AT - Customs

Summary

Issues:
- Dismissal of appeals by Commissioner of Customs (Appeals) for non-compliance with Stay Order
- Allegation of violation of principles of natural justice
- Request for setting aside the impugned Order and remanding the matters to the Commissioner (Appeals)

Analysis:
The judgment pertains to three appeals against the same impugned Order of the Commissioner of Customs (Appeals), which were dismissed for non-compliance with the Stay Order. The Commissioner (Appeals) had directed the appellants to deposit specific amounts as part of the personal penalties imposed by lower authorities. The appellants subsequently filed a Miscellaneous Application seeking modification of the Stay Order based on their financial position. However, the Commissioner (Appeals) dismissed the appeals without considering the modification application, stating that no new ground, apart from financial hardship, had been presented. The learned Consultant for the appellants argued that the dismissal without considering the modification application violated principles of natural justice, citing a Tribunal decision where such actions were deemed a failure of justice.

The Revenue representative contended that the appeals were rightly rejected due to the appellants' failure to comply with the Stay Order. The Tribunal, after considering both sides' submissions, found a patent illegality in the Commissioner (Appeals)'s Order. It noted that the application for modification should have been independently disposed of, with a personal hearing for the appellants to present their case. Citing precedent, the Tribunal emphasized the necessity of providing a show cause notice before dismissing appeals for non-compliance. Consequently, the Tribunal set aside the impugned Order and remanded the matters to the Commissioner (Appeals) for a fresh disposal in accordance with the law. The Commissioner (Appeals) was instructed to reconsider the modification application, allowing the appellants a reasonable opportunity to present their case. The appeals were allowed by way of remand, leading to the disposal of all Stay Petitions associated with them.