2013 (12) TMI 937 - AT - Customs

Violation of principles of natural justice - Notice of hearing not served - Held that - on 19-3-2008 hearing took place and it was recorded that the persons whose statements have been recorded and who has been asked to appear on 18-19-3-2008 and had not appeared for the same. Thereafter, it is further recorded that since the noticees to appear for personal hearing to those persons have been sent by post and the said persons were not present. It is requested that the Presenting Officer to ensure that the notices for hearing to be held on 26-27-3-2008 be served to the persons at their residential addresses, the undersigned would be getting the letter served at their office premises - AR failed to produce the records whether notices of hearing for 26-27-3-2008 was served on the persons or not, as the same is not available in the records, therefore, presumption goes against the Revenue. It is held that notices for the hearing to be held on 26-27-3-2008 were not served on the appellant as directed by the Inquiry Officer - principles of natural justice has been violated, therefore, the inquiry proceedings were held in the back of the appellants and the same are liable to be set aside - Decided in favour of assessee.

Summary

Issues: Violation of principles of natural justice in inquiry proceedings and revocation of CHA license

In this case, the appellant, a Customs House Agent (CHA), appealed against the revocation of their CHA license by the Commissioner of Customs. The appellant argued that during the inquiry proceedings initiated against them for violating certain regulations, there was a gross violation of principles of natural justice. The appellant claimed that they were not properly informed about the hearing dates, leading to a lack of opportunity to defend themselves adequately. The appellant's counsel was unable to attend the proceedings on a specific date, and despite seeking an adjournment, the hearing proceeded without proper notice to the appellant. The appellant contended that this lack of notice and opportunity to be heard amounted to a violation of natural justice.

On the other hand, the Department's representative opposed the appellant's contentions, stating that the appellant was aware of the hearing dates and failed to take necessary steps to stay informed about the proceedings. The Department argued that since the appellant chose not to appear before the authorities, the revocation order was justified and lawful.

After hearing both sides and examining the records, the Tribunal found that there were discrepancies in the service of hearing notices for the proceedings. It was noted that the notices for the hearing scheduled on a specific date were not served on the appellant as directed by the Inquiry Officer. The Tribunal concluded that this failure to serve notices properly amounted to a violation of natural justice. Consequently, the Tribunal held that the inquiry proceedings conducted without proper notice to the appellant were unfair and should be set aside. As a result, the impugned order revoking the CHA license was deemed invalid, and the appeal was allowed with consequential relief.

In summary, the judgment revolved around the issue of violation of principles of natural justice in the inquiry proceedings leading to the revocation of the CHA license. The Tribunal found that the appellant was not adequately informed about the hearing dates, which resulted in a lack of opportunity to present their case effectively. Due to the failure to serve hearing notices properly, the Tribunal concluded that the principles of natural justice were violated, rendering the inquiry proceedings unfair and the impugned order invalid.