2011 (3) TMI 1208 - AT - Central Excise

Application for stay - Waiver of pre-deposit - violation of principles of natural justice - Held that - As the appellants has filed an appeal before the Commissioner (Appeals) on 15/09/2009 and opportunity of being heard was given only on 05/10/2009 wherein the applicants stay application is to be disposed of within one month and opportunity was given after 20 days of filing the appeal, when the application was to be disposed of in a time-bound manner, the applicants should have been given the earliest opportunity to defend their case. In this case, it is a matter of record that opportunity of being heard of the stay application was given after 20 days of the filing of the appeal wherein the appellant sought adjournment which was denied and the stay application was disposed of in violation of principles of natural justice. Hence, the impugned order is in violation of principles of natural justice - remand the matter back to the lower appellate authority to consider the stay application as well as the appeal of the appellants afresh - appeal is allowed by way of remand.

Summary

Issues:
Appeal against dismissal for non-compliance with Section 35F of the Central Excise Act, 1944; Violation of principles of natural justice by lower appellate authority.

Analysis:
The appellants filed an appeal against the adjudication order, but the lower appellate authority dismissed it for non-compliance with Section 35F of the Central Excise Act, 1944. The appellants sought adjournment during the consideration of their stay application, which was denied, leading to the rejection of the appeal. The appellants argued that they were not given ample opportunity to contest their case, citing a violation of natural justice. The Tribunal noted that the impugned order was not based on merits but on non-compliance with procedural provisions. After granting a waiver of pre-deposit, the Tribunal took up the appeal for final disposal. Upon examination, it was found that the appellants were not given a timely opportunity to be heard, with the stay application being disposed of in violation of natural justice principles. Consequently, the Tribunal set aside the impugned order and remanded the matter back to the lower appellate authority for a fresh consideration of the stay application and the appeal.

This judgment highlights the importance of procedural compliance and adherence to principles of natural justice in appellate proceedings. The Tribunal emphasized the need for timely opportunities for parties to present their case and the consequences of failing to comply with statutory provisions. The decision to remand the matter signifies the Tribunal's commitment to ensuring a fair and just process for all parties involved. The case serves as a reminder of the significance of upholding procedural fairness in legal proceedings, even when addressing technical issues related to compliance with statutory requirements.