2013 (2) TMI 252 - AT - Central Excise

Imposition of penalty u/r 26 of Central Excise Rules, 1944 - assessee contested against Violation of principles of natural justice as lower authorities have not given the relied upon documents to the appellant to defend his case - Held that - As the appellant herein did not file any reply accordingly, the appellant is directed to file a reply to the show cause notice before adjudicating authority on or before 25.02.2013. As the lower authorities have not given the relied upon documents to the appellant to defend his case it is directed to adjudicating authority to grant the copies of relied upon documents to the appellant within a period of 4 weeks from today on a specific request made by the appellant herein - in favour of assessee by way of remand.

Summary

Issues: Imposition of penalty under Rule 26 of Central Excise Rules, 1944; Violation of principles of natural justice regarding documents provided to appellant.

Imposition of Penalty:
The appeal challenged the imposition of a penalty on the appellant under Rule 26 of the Central Excise Rules, 1944. The first appellate authority had upheld the penalty. However, during the proceedings, it was noted that the appellant did not file a reply or appear before the lower authorities to defend the case. The adjudicating authority made a decision based on the available records as the appellant failed to provide a response. The Tribunal directed the appellant to file a reply to the show cause notice within a specified period, ensuring the principles of natural justice were followed. The matter was remanded back to the adjudicating authority for reconsideration, keeping all issues open for de-novo proceedings.

Violation of Principles of Natural Justice:
The appellant's consultant raised a concern that the lower authorities did not provide the relied-upon documents to the appellant to defend the case, potentially violating the principles of natural justice. In response to this, the Tribunal directed the adjudicating authority to grant copies of the relied-upon documents to the appellant within a specified period. The appellant was then directed to file a reply to the show cause notice within a set timeframe. The adjudicating authority was instructed to consider the matter, along with related cases, following the principles of natural justice. It was explicitly stated that no opinion on the merits of the case was expressed, leaving all issues open for reconsideration during the de-novo proceedings.

In conclusion, the appeal was disposed of by way of remand, emphasizing the importance of ensuring the appellant's right to respond and access to relevant documents in accordance with the principles of natural justice.