2010 (12) TMI 129 - AT - Customs

DEPB Fraud - Penalty - Duty which was paid by way of debit entries on the basis of TRA has been demanded and penalty has been imposed on all the appellants - Found that in the reply to show cause notice appellants made specific request for supply of documents relied upon by the Revenue in the show cause notice - On the sole ground of non observance of principles of natural justice the matter is remanded to the original adjudicating authority who shall supply the relied upon documents and thereafter proceed to adjudicate the matter - Needless to say appellants shall be given reasonable opportunity to present their case before a final order is issued

Summary

Issues: Lack of observance of principles of natural justice in a customs duty case involving TRA import consignments; non-supply of relied upon documents leading to demand of duty and penalty.

In the judgment delivered by the Appellate Tribunal CESTAT, Ahmedabad, the issue revolved around the lack of observance of principles of natural justice in a customs duty case concerning TRA import consignments by three appellants: M/s. Raksha Impex, M/s. Prakash Impex, and M/s. Bharath Impex. The Tribunal noted that the documents relied upon by the Revenue to issue the show cause notice demanding duty and proposing penalty were not supplied to the appellants despite a specific request made during the reply to the show cause notice. The Tribunal emphasized that the letter of the Commissioner of Customs, Bombay, which formed the basis for the show cause notice, was not provided to the appellants. Due to this non-observance of principles of natural justice, the matter was remanded to the original adjudicating authority. The Tribunal directed the authority to supply the relied upon documents to the appellants and ensure that they are given a reasonable opportunity to present their case before a final order is issued.

The learned advocate representing the appellants argued that the principles of natural justice were not adhered to in the case, as the documents crucial for the show cause notice were not provided to them despite a specific request. Additionally, during the consideration of the stay application, the Tribunal acknowledged this issue, and the department failed to clarify whether the documents had been supplied or not. The Tribunal, after considering the submissions made by the appellants, concluded that the failure to supply the relied upon documents constituted a violation of natural justice. As a result, the matter was remanded to the original adjudicating authority to rectify this procedural flaw. The Tribunal emphasized that the appellants must be afforded a fair opportunity to present their case before any final decision is made.

In response to the submissions made by the appellants, the Tribunal found merit in the argument that the principles of natural justice were not upheld in the case. It was highlighted that despite the specific request made by the appellants for the supply of documents relied upon by the Revenue in the show cause notice, the essential letter from the Commissioner of Customs, Bombay, was not provided to them. This failure to furnish crucial documents undermined the appellants' ability to effectively respond to the allegations and defend their position. Consequently, the Tribunal decided to remand the matter to the original adjudicating authority to ensure that the appellants are furnished with the necessary documents and are granted a fair opportunity to present their case before any final determination is made.