2008 (10) TMI 667 - HC - Customs

Maintainability of petition - alternative remedy of appeal - time limitation - principles of Natural Justice

Summary

Issues:
Challenge to order confirming demand and penalty due to breach of natural justice principles.

Analysis:
The petitioner challenged an order confirming a recovery demand and penalty due to a breach of natural justice principles. The petitioner's appeal against the original order was dismissed as time-barred, leading to the challenge based on the order's alleged violation of natural justice. The authority is obligated to grant a hearing before concluding proceedings. The order mentioned specific dates for a personal hearing, but the petitioner did not appear, leading to the authority's final decision. However, subsequent letters requested further documents and set new hearing dates, contradicting the original order's claim of a final hearing. The petitioner requested more time to produce required documents, which was orally assured by the authority. The court found the original order violated principles of natural justice due to factual inaccuracies and failure to allow adequate time for the petitioner to present necessary documents.

The respondents argued that the petitioner should have pursued alternate remedies and challenged the order before a tribunal. However, the court cited the exception that allows intervention when an order breaches natural justice principles. As the order was found to violate natural justice, the court set aside the impugned order and remitted the proceedings for reconsideration in accordance with the law. The court held that the availability of alternate remedies or their time-barred nature should not prevent interference when principles of natural justice are breached. The petition was allowed, and the original order was overturned, directing a fresh consideration by the authority.