2013 (4) TMI 109 - AT - Customs

Waiver of penalties - Principle of Natural justice - Held that - It can be seen that the show cause notice directs all the applicants/appellants to reply to Commissioner of Customs, Custom House, Navrangpura, Ahmedabad for showing the cause to show cause notice issued to them - In our view, if show cause notice directs assessees/noticees to reply a particular Commissioner/Commissionerate, it is for that Commissioner to hear and adjudicate the case, until and unless there is any change in jurisdiction - On this point itself, we find that the entire order is passed in violation of principles of natural justice. Accordingly, without expressing any opinion on the merits of the case, keeping all the issues open - we set aside the impugned order and remit the matter back to the adjudicating authority to reconsider the issue afresh - Needless to state that the adjudicating authority should follow the principles of natural justice, before coming to any conclusion - Stay petitions and appeals disposed of by way of remand.

Summary

Issues: Jurisdiction of adjudicating authority, violation of principles of natural justice

In the judgment delivered by the Appellate Tribunal CESTAT AHMEDABAD, the issue revolved around the jurisdiction of the adjudicating authority and the violation of principles of natural justice. The case involved penalties imposed on all applicants by the Commissioner of Central Excise, Customs & Service Tax, Daman, based on a show cause notice issued by the Directorate of Revenue Intelligence, Surat. The notice directed the applicants to reply to the Commissioner of Customs, Custom House, Navrangpura, Ahmedabad, which raised concerns about the jurisdiction of the adjudicating authority. The Tribunal found that the entire order was passed in violation of principles of natural justice due to the mismatch in the directing authority and the adjudicating authority.

The Tribunal, after hearing both sides, decided to set aside the impugned order and remit the matter back to the adjudicating authority for reconsideration. The judgment emphasized the importance of following the principles of natural justice in the adjudication process. The Tribunal refrained from expressing any opinion on the merits of the case but directed the adjudicating authority to conduct a fresh review while ensuring adherence to natural justice principles. The stay petitions and appeals were disposed of by way of remand, allowing for a fair and just reconsideration of the issues involved.

Overall, the judgment highlighted the significance of jurisdictional clarity and adherence to natural justice principles in the adjudication process. By remitting the matter back to the adjudicating authority, the Tribunal aimed to ensure a fair and unbiased review of the case, emphasizing the importance of procedural fairness and legal principles in administrative decisions.