2007 (12) TMI 508 - AT - Customs

Summary

Issues involved: Denial of benefit of certain Notifications, imposition of penalties, denial of natural justice.

Denial of benefit of certain Notifications:
The ld. Commissioner of Customs demanded duty of over Rs. 2.9 crores from M/s. Thirven Steels (P) Ltd by denying them the benefit of certain Notifications and imposed penalties on the appellants, including the Managing Director and the Manager of their factory. The appellants requested permission to inspect relied-upon documents for which the permission was not granted, hindering their ability to provide an effective reply to the show-cause notice. The appellants also alleged denial of natural justice as they were not given a personal hearing after the dismissal of a civil suit and were not allowed to cross-examine witnesses. The Tribunal found that the case should be adjudicated afresh by the Commissioner after enabling the parties to file effective replies and providing a reasonable opportunity for a personal hearing, setting aside the impugned order and remanding the case for de novo adjudication.

Imposition of penalties:
In the impugned order, penalties were imposed on the appellants by the ld. Commissioner of Customs. The appellants raised concerns regarding the denial of natural justice, specifically the lack of personal hearing and the refusal to grant permission to cross-examine witnesses. The Tribunal, after examining the facts and circumstances, concluded that the case should be adjudicated afresh to ensure the appellants are given a reasonable opportunity to obtain legible copies of relevant documents and to reply to the show-cause notice, followed by a reasonable opportunity for a personal hearing. The impugned order was set aside, and the appeals were allowed by way of remand.

Denial of natural justice:
The appellants alleged that natural justice was denied to them as they were not granted permission to inspect relied-upon documents, were unable to provide an effective reply to the show-cause notice, and were not given a personal hearing after the dismissal of a civil suit. The ld. Commissioner of Customs had arranged personal hearings on several occasions prior to November 2006, but no personal hearing was conducted after that date. The Tribunal found that the case should be adjudicated afresh to ensure that the appellants are given a reasonable opportunity to obtain legible copies of relevant documents, reply to the notice, and have a personal hearing, thereby allowing the appeals by way of remand.