2013 (1) TMI 410 - AT - Central Excise

Remission of duty on the raw materials/ inputs/ packing materials rejected - Held that - When this matter was remanded in 2008 the adjudicating authority i.e. the Commissioner did not find time till 31.01.2011 to call the appellant for hearing and considering his case on merits despite such a clear direction. Suffice it to say that this would tantamount to serious violation of principles of natural justice and is judicial indiscipline, thus constrained to set-aside the impugned order on this ground itself - assessee submitted the issue may be decided here only as the division bench of this tribunal in the case of Aditya Industries 2009 (2008 (10) TMI 561 - CESTAT,AHMEDABAD) has taken a view which is in favour of the assessee - appeal of assessee allowed by way of remand.

Summary

Issues:
Appeal against order for remission of duty on raw materials without payment of duty under CT-3 certificates - Violation of principles of natural justice - Judicial indiscipline - Remand back to adjudicating authority for fresh decision.

Analysis:
The appeal in question was directed against an order in original dated 31.01.2011 concerning the remission of duty on raw materials received without payment of duty under CT-3 certificates as an Export Oriented Unit. The appellant's counsel argued that the principles of natural justice were not followed in the rejection of the remission claim, despite a previous direction from the bench to reconsider the issue with proper reasoning. The learned departmental representative suggested remanding the matter back for reconsideration.

Upon review, it was found that a previous order had remanded the matter back to the Commissioner for fresh decision, emphasizing the need for the appellant to be heard and provided with reasoning for rejection. However, despite clear directions, the adjudicating authority did not call the appellant for a hearing until 31.01.2011, indicating a serious violation of principles of natural justice and judicial indiscipline. As a result, the impugned order was set aside on these grounds alone.

Although the division bench had a favorable view towards the assessee in a related case, the absence of an order on the merits of the current case and the violation of natural justice principles led to the decision to remand the matter back to the adjudicating authority for reconsideration. The adjudicating authority was instructed to ensure the appellant or their advocate is called for a personal hearing and all submissions are duly considered.

In conclusion, the appeal was allowed by way of remand, highlighting the importance of adhering to principles of natural justice in administrative decisions to ensure a fair and just outcome for all parties involved.