2014 (3) TMI 279 - AT - Central Excise

Non-supply of relied upon documents - Clandestine removal of goods - Appellant made a request for supply of non-relied upon documents so as to file his defence reply - Request was not entertained and order had been passed confirming demands and imposing penalties - Violation of principle of natural justice - Held that - When the matter travelled before the Tribunal, Tribunal took note of the said lapse on the part of the Revenue and directed the Revenue to supply all documents at the cost of assessee. Liberty was given to the assessee to inspect the files and Revenue was to place a report from the jurisdictional authority on record on 7-11-2011. There is no action by the Revenue on the said direction of the Tribunal and surprisingly no report stand filed by them. Even when the appellant was granted unconditional stay subsequently on the above ground, Revenue did not make any efforts to supply the said documents. In fact even till date the same do not stand supplied. Adamant stand of the Revenue not to supply the non-relied documents to the assessee, which stand seized from their premises and admittedly belonged to them and are required by them for taking a proper defence, result in such type of mess and may result in losing of the case of the Revenue which otherwise may be a good case for them. According to the basic principle of adjudication, the principle of natural justice are required to be followed strictly - No reason on the part of the Revenue can justify such non-return of the documents. It is difficult to understand as to what can be the objection of the Revenue for return of such seized documents, which they no longer require and which admittedly belong to assessee. Probably, there is no valid answer to such question by the Revenue - I set aside the impugned order and remand the matter to the original adjudicating authority with directions to make all efforts for supply of non-relied upon documents to the assessee so as to give a fair chance and fair opportunity to the assessee to consult the said documents and prepare a proper defence reply - Decided in favour of assessee.

Summary

Issues:
Non-supply of non-relied upon documents during adjudication process.

Analysis:
The judgment revolves around the issue of non-supply of non-relied upon documents during the adjudication process. The appellant had requested the supply of such documents to prepare a defense reply, but the request was not entertained initially. The Commissioner (Appeals) remanded the matter to the original adjudicating authority with clear directions to supply all relied upon and non-relied upon documents, emphasizing the principles of natural justice. Despite these directions, the non-relied documents were not provided to the appellant during de novo proceedings, leading to the passing of an adjudication order without the necessary documents. The Tribunal intervened multiple times, directing the adjudicating authority to allow inspection and supply the documents upon request by the appellant, emphasizing the importance of complying with procedural fairness and ensuring a fair opportunity for the appellant to consult the documents for defense preparation.

The Tribunal noted the appellant's repeated efforts to procure the documents and the department's failure to provide them, citing reasons such as documents being untraceable due to the retirement of the concerned Inspector. The judgment highlighted the Revenue's duty to return documents not relied upon in the show cause notice, emphasizing that the decision to retain such records without providing them to the appellant for defense preparation was unjustified. The Tribunal criticized the Revenue's stance of not supplying the non-relied documents, which belonged to the appellant and were crucial for a proper defense, potentially jeopardizing the Revenue's case due to procedural lapses.

Ultimately, the Tribunal set aside the impugned order and remanded the matter to the original adjudicating authority with strict directions to make all efforts to supply the non-relied upon documents to the appellant. The judgment underscored the importance of adhering to the principles of natural justice, ensuring fairness in adjudication processes, and providing the appellant with a fair chance to consult the necessary documents for preparing a proper defense reply. The decision aimed to rectify the procedural shortcomings and uphold the appellant's right to a just and transparent adjudication process.

In conclusion, the judgment highlighted the significance of procedural fairness, the duty of the Revenue to supply necessary documents for defense preparation, and the repercussions of failing to adhere to the principles of natural justice in adjudication proceedings. The decision emphasized the need for a fair opportunity for the appellant to present their case effectively and underscored the consequences of procedural lapses on the overall integrity of the adjudication process.