2015 (3) TMI 1287 - HC - Central Excise

Principles of Natural Justice - appellant s case is that prior to hearing of the appeal, no notice came to be issued to the appellant - Held that - it is a settled principle of law that every order which adversely affects the rights of a party has to be preceded by the principles of natural justice unless the provision expressly or by necessary implication provides for the exclusion of the same - every quasi-judicial authority is bound to follow the principles of natural justice - appeal allowed - matter is remitted back to the learned CESTAT for hearing it afresh.

Summary

Issues:
1. Appeal against order passed by CESTAT
2. Confirmation of demand by Commissioner, Central Excise
3. Breach of principles of natural justice
4. Question of law regarding natural justice
5. Necessity of notice prior to passing adverse order
6. Absence of notice in the present case
7. Requirement of natural justice in every order affecting rights
8. Obligation of quasi-judicial authorities to follow natural justice
9. Decision on appeal based on natural justice grounds
10. Quashing of impugned order and remittance for fresh adjudication

Analysis:
The appellant appealed against the order of the CESTAT dismissing their appeal against the confirmation of a demand by the Commissioner, Central Excise. The Revenue also filed an appeal which was allowed. The appellant then approached the Supreme Court, which remanded the matter for fresh adjudication before the Tribunal. The Tribunal subsequently dismissed the appellant's appeal and allowed the Revenue's appeal.

The main contention in the present petition was the absence of a notice issued to the appellant prior to the hearing, leading to a breach of natural justice principles. The appellant argued that passing an adverse order without following natural justice is a question of law. Conversely, the respondent contended that no legal issue was raised in the appeal, warranting its dismissal.

Despite the request, the Revenue could not provide a copy of the notice issued to the appellant before the impugned order. The Court emphasized the established legal principle that any order impacting a party's rights must adhere to natural justice principles unless expressly excluded by law. It reiterated that quasi-judicial authorities are obligated to follow natural justice.

Consequently, the Court found in favor of the appellant based on the violation of natural justice principles. The impugned order was quashed, and the matter was remitted back to the CESTAT for fresh adjudication in compliance with the law. The Tribunal was instructed to notify both parties before adjudicating the matter to ensure fairness and adherence to natural justice principles.