2012 (11) TMI 643 - AT - Central Excise

Demand of credit availed and lying utilized - Held that - Demand orders have been passed without issue of any show cause notice and without hearing the appellants. Hence the appellants had no chance to present the factual details before the Original Authority to arrive at the proper calculation. As the orders were passed in breach of principle of natural justice the case is remanded to original authority for deciding the issue afresh providing a reasonable opportunity of hearing to the appellants - in favour of assessee by way of remand.

Summary

Issues:
Appeal against Order-in-Appeal dismissal, retrospective amendment application, absence of show cause notice, breach of natural justice in passing orders.

Analysis:
The appeal was filed against the dismissal of the appellant's appeal in Order-in-Appeal No.52/CE(A)/GHY/06. The appellant contended that in 15 appeals, the Tribunal had remanded the cases to the original authority for a fresh order. The Tribunal noted the absence of a stay on the decision of the Hon'ble Guwahati High Court or any contrary decision from a higher judicial forum, leading to the requirement of following the law laid down by the said decision. The amended law necessitated demanding only the credit availed and utilized from the appellants. However, the Original Authority had passed orders without issuing a show cause notice or hearing the appellants, depriving them of the chance to present factual details. Thus, the Lower Appellate Authority was directed to ensure proper calculations in line with the retrospectively amended law before confirming demands, leading to the setting aside of the impugned order and remanding the matter for a fresh decision with a reasonable opportunity of hearing for the appellants.

In a similar vein, it was found that in the appellant's own case, both lower authorities had not granted a hearing, resulting in orders passed in breach of the principle of natural justice. As the facts and circumstances were alike, the case was remanded to the original authority for a fresh decision, emphasizing the necessity of granting a reasonable opportunity of hearing to the appellants. This led to the appeal being allowed by way of remand, ensuring procedural fairness and adherence to the principles of natural justice throughout the adjudicatory process.