2011 (1) TMI 369 - AT - Central Excise

Failure on the part of the adjudicating authority to give sufficient opportunity to contest the proceedings to the appellants - the notice also stated that in case of failure to appear on 18-1-2006 the appellants would be required to appear on 19-1-2006 and in case of failure to appear on 19-1-2006 then appellants were required to appear on 20-1-2006 - It appears that the appellants are justified in contending about failure to give them sufficient opportunity to contest the proceedings - Appeal is allowed by way remand to adjudicating authority

Summary

Issues: Failure to provide sufficient opportunity to contest the proceedings.

Analysis:
The appeal before the Appellate Tribunal CESTAT, New Delhi arose from an order passed by the Commissioner (Appeals), Bhopal, dated 24-1-2006. The primary issue raised in the appeal was the failure on the part of the adjudicating authority to provide sufficient opportunity to the appellants to contest the proceedings. The appellants were issued a notice on 12-1-2006, requiring their appearance for a personal hearing on 18-1-2006, with subsequent dates specified in case of non-appearance. The Commissioner proceeded to decide the matter on merits, stating that adequate time and opportunity had been given to the appellants, who allegedly failed to avail the same.

The appellant's advocate presented an application dated 19-1-2006, requesting further time, which was submitted to the office of the Asstt. Commissioner of Central Excise at Bhopal. The Department argued that since the letter was not presented to the adjudicating authority, it could not be considered as known to the Commissioner. However, irrespective of whether the Commissioner was aware of the letter, it was noted that the notice for the personal hearing was issued for consecutive days, which could not be deemed as sufficient opportunity. The Commissioner's assertion of providing ample time and opportunity was challenged by the appellants, supported by the letter dated 19-1-2006, indicating their genuine interest in contesting the proceedings.

The Tribunal, without delving into the merits of the case, concluded that the impugned order should be set aside. The matter was remanded to the adjudicating authority for fresh adjudication, emphasizing the necessity to provide appropriate opportunity to the appellants to contest the proceedings. The appellants were directed to file a reply to the show cause notice by a specified date and appear for further proceedings. The adjudicating authority was instructed to expedite the process, thereby disposing of the appeal effectively. Consequently, the impugned order was set aside, and the matter was remanded for fresh adjudication, ensuring the appellants' right to contest the proceedings adequately.