2012 (4) TMI 166 - AT - Central Excise

Waiver of pre-deposit - principles of natural justice - the hearing was fixed for 17.11.2009 and the appellant vide their letter requested for adjournment. Ld.Commissioner has recorded this fact in the impugned order at page 3 and decided the matter ex parte - Decided in favor of the assessee by way of remand

Summary

Issues:
1. Waiver of pre-deposit under Section 11AC
2. Appeal disposed of without affording personal hearing
3. Breach of principles of natural justice

Analysis:

1. Waiver of pre-deposit under Section 11AC:
The applicant filed an application seeking waiver of pre-deposit of a specific amount along with penalty and interest under Section 11AC. The Tribunal, after hearing both sides, decided to dispose of the appeal itself at that stage by waiving the requirement of pre-deposit. This decision allowed the appeal to proceed without the need for the initial deposit.

2. Appeal disposed of without affording personal hearing:
The appellant contended that the appeal was decided by the Commissioner(Appeals) without granting them a personal hearing. It was highlighted that the Commissioner recorded the appellant's request for an adjournment due to the representative being out of station, but still decided the appeal ex parte without a personal hearing. The Assistant Commissioner argued that the hearing was scheduled for a specific date, and the appellant did not appear on that day. The Tribunal acknowledged the discrepancy in the proceedings and found that the case was decided in violation of the principles of natural justice. As a result, the Tribunal remanded the case back to the Commissioner(Appeals) for a fresh decision, emphasizing the need for a reasonable opportunity of hearing to be granted to the appellant. The appeal was disposed of through remand, and the stay petition was also addressed.

3. Breach of principles of natural justice:
The Tribunal's decision to remand the case back to the Commissioner(Appeals) was based on the finding that the appellant was not given a fair opportunity for a personal hearing before the appeal was decided. By highlighting the breach of principles of natural justice in the proceedings, the Tribunal ensured that the appellant would have a chance to present their case and be heard adequately in the subsequent decision-making process. This emphasis on upholding the principles of natural justice underscored the importance of procedural fairness and due process in legal proceedings, ultimately leading to the appeal being disposed of by remand.