2013 (7) TMI 373 - AT - Central Excise

Principles of Natural Justice - Adjudicating Authority not given the relied upon documents which were sought by the appellant for contesting the demands raised on them. Held that - Adjudicating authority to provide relied upon documents within 30 days - Appellants to file reply to the show cause notice within sixty days - Adjudicating authority to reconsider the issue afresh after following the principles of natural justice.

Summary

Issues: Stay petitions against waiver of pre-deposit of duty, interest, and penalties imposed by the adjudicating authority.

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The judgment by the Appellate Tribunal CESTAT Ahmedabad, delivered by Judges M.V. Ravindran and H.K. Thakur, addressed stay petitions challenging the waiver of pre-deposit of duty, interest, and penalties. The senior counsel for the appellants argued that the adjudicating authority did not provide the relied-upon documents necessary for contesting the demands related to ineligible cenvat credit availed by the appellant as a job worker. The counsel highlighted that crucial documents mentioned in Annexure-F of the show cause notice were not provided, rendering the appellants unable to defend their case effectively. The Additional Commissioner (A.R.) suggested that the appellants should be given an opportunity to collect the necessary documents and present a defense. The Tribunal, after considering both sides' submissions, observed a violation of natural justice principles and allowed all stay petitions for further disposal of the appeals.

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Upon reviewing the records, the Tribunal agreed with the senior counsel's contentions, noting that the appellants had repeatedly requested the relied-upon documents from the lower authorities. The Tribunal specifically referenced a letter where the appellants highlighted the absence of crucial documents like sales invoices and cenvat credit records mentioned in Annexure-F. Recognizing the appellants' need for these documents to present a robust defense, the Tribunal emphasized the importance of providing such documentation for a fair adjudication process. While refraining from expressing any opinion on the case's merits, the Tribunal concluded that the issue required reconsideration by the adjudicating authority to ensure a fair hearing.

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In its directive, the Tribunal ordered the adjudicating authority to furnish the relied-upon documents listed in Annexure-F, particularly parts A, C, and D, to the appellants within thirty days of the order's certified copy submission. The appellants were instructed to respond to the show cause notice within sixty days of receiving the documents. Subsequently, the adjudicating authority was tasked with reevaluating the issue following the principles of natural justice. Ultimately, all appeals were allowed for remand, signaling a procedural step to address the lack of crucial documentation and uphold the appellants' right to a fair hearing.