2011 (3) TMI 1080 - AT - Customs

Goods cleared without payment of duty against the Advance licences - assessee engaged in the business of import of poly propylene granules and sold the same on High Seas Sale basis to various persons including M/s Chandra Gems - nvestigations conducted by Revenue who entertained a view that the buyers of the goods were bogus parties and their names were used by assessee to clear imported granules against advance licences without payment of duty - the appellants contended that the impugned order is in violation of principles of natural justice inasmuch as the appellants were not offered any effective opportunity of personal hearing - Held that - No merits in the contention of the DR as admittedly the matters were remanded in 2002 and no action was taken on the same by Revenue till 2008. There is no reason for such delayed taking up of the de-novo proceedings. In fact such un-explained delay on the part of the Revenue is the actual reason for delay in the adjudication proceedings. Further admittedly no personal hearing was afforded to the appellant after they filed detailed written submissions as per the direction of Assistant Commissioner. No reasons stand advanced as to why the appellants were not heard in person. Thus the impugned orders stand passed in gross violation of principles of natural justice - remand the matters to Commissioner for fresh adjudication.

Summary

Issues: Violation of principles of natural justice in adjudication proceedings

The judgment by the Appellate Tribunal CESTAT, Ahmedabad, dealt with multiple stay petitions involving identical issues. The appellant had deposited a partial amount of the confirmed duty in one appeal, while no deposit was made in the other appeals. The impugned order was passed in de-novo proceedings after the matter was remanded by the Tribunal. The case involved allegations of using bogus parties to clear imported goods without duty payment against advance licenses. The appellant raised concerns about the violation of principles of natural justice due to delays and lack of personal hearing opportunities. The Assistant Commissioner directed the appellant to file written submissions, but no personal hearing was granted, leading to the contention that the impugned order was unjust. The Tribunal found the delay in proceedings by the Revenue to be unjustified and concluded that the impugned orders were passed in gross violation of natural justice principles. The Tribunal set aside the orders, remanded the matters for fresh adjudication, and instructed the authorities to provide the appellants with a personal hearing and address the grievance of non-supply of documents. The Tribunal emphasized the need for a prompt re-adjudication due to the age of the case.

In conclusion, the Tribunal disposed of the stay petition and the appeal by setting aside the impugned orders and remanding the matters for fresh adjudication, ensuring the appellants' right to a personal hearing and addressing their concerns about document supply. The judgment highlighted the importance of upholding principles of natural justice and expediting the re-adjudication process in old cases.