2013 (12) TMI 172 - AT - Central Excise

Opportunity of being heard Personal hearing notice not received Adjudication made before filing reply Held that - There seems to be a tearing hurry on the part of the adjudicating authority to decide the issue even without waiting for reply from the main appellant as well as from the other appellant - this is a gross violation of principles of natural justice there was nothing on record that the adjudicating authority had directed the appellants to file reply after the date mentioned in the show cause notice for filing reply - Matter remitted back to the adjudicating authority for proper adjudication after proper hearing Decided in favour of Assessee.

Summary

Issues: Violation of natural justice in adjudication proceedings.

In the case before the Appellate Tribunal CESTAT AHMEDABAD, the appellants raised concerns regarding the violation of natural justice in the adjudication proceedings. The appellants, represented by learned advocates, argued that the adjudicating authority had only granted them two dates of hearing and failed to provide them with personal hearing notices, hindering their ability to present a proper defense. It was highlighted that the appellants had not even filed a reply to the show cause notice as the adjudication proceedings were rushed without waiting for their response. On the other hand, the departmental representative contended that the appellants were given two dates of hearing. The Tribunal, after considering the submissions from both sides, observed a haste on the part of the adjudicating authority in deciding the matter without waiting for the appellants' replies, deeming it a gross violation of natural justice principles. The Tribunal emphasized the importance of providing adequate opportunities for the appellants to be heard and receive necessary documents for a fair adjudication process.

The Tribunal concluded that natural justice must not be compromised before reaching a decision. It was noted that the adjudicating authority should have granted at least three different hearings to the appellants to ensure a fair process. As there was no evidence of a third hearing being provided, the Tribunal held that there was indeed a violation of natural justice principles. The appellants expressed grievance over only receiving the show cause notice and not the complete set of relied upon documents from the adjudicating authority. Therefore, the Tribunal decided to remit the matter back to the adjudicating authority and directed the office to provide the relied upon documents to the appellants within a specified timeframe. The appellants were instructed to file their replies to the show cause notice within four weeks of receiving the documents, and the adjudicating authority was mandated to adjudicate the matter within three months from the date of filing the replies to uphold the principles of natural justice.

Additionally, the Tribunal addressed a request from the appellants' counsel regarding the closed factory and directed the adjudicating authority to serve copies of hearing notices to the mentioned addresses. The Tribunal also ordered that copies of the personal hearing notices be sent to all the advocates on record. The appeals were disposed of by way of remand, and a miscellaneous application was also resolved accordingly. The Tribunal's decision aimed to ensure a fair and just adjudication process by upholding the principles of natural justice and providing the appellants with adequate opportunities to present their case effectively.