2017 (2) TMI 1397 - AT - Central Excise

Principles of natural justice - appellant has not filed any reply to the show cause notices issued to them - Inappropriate and fraudulent availment of Cenvat credit - Held that - The action of not filing reply to the show cause notice by the appellant is highly despicable, at the same time, in the interest of justice, the appellants should be extended an opportunity for filing reply to the show cause notice and defend the allegation made therein. - the matter needs consideration by the adjudicating authority - appeal disposed off by way of remand.

Summary

Issues:
- Allegation of inappropriate and fraudulent Cenvat credit availed by the appellant.
- Failure of the appellant to file a reply to the show cause notices.
- Consideration of extending an opportunity to the appellant for filing a reply and defending the allegations.
- Direction for the appellant to file a reply within a specified period and adjudicating authority to decide the matter following principles of natural justice.

Analysis:
The judgment by the Appellate Tribunal CESTAT NEW DELHI pertains to two appeals challenging OIO Nos. 19/2011 and OIO-ALW-EXCUS-000-COM-012-14-15. The primary issue revolves around the allegation of the appellant availing inappropriate and fraudulent Cenvat credit. The Tribunal refrains from delving into the merits of the case due to the appellant's failure to respond to the show cause notices, as noted by the adjudicating authority. This failure to provide a reply is deemed highly objectionable by the Tribunal.

The Tribunal, while emphasizing the importance of justice, decides to grant the appellant an opportunity to file a reply to the show cause notice and defend the allegations made against them. It is highlighted that the matter necessitates consideration by the adjudicating authority to ensure a fair and just conclusion. Consequently, the Tribunal directs the appellant's Counsel to submit the reply within four weeks from the date of the judgment.

The judgment concludes with the disposal of the appeals by way of remand, indicating that the adjudicating authority will review the case upon receiving the appellant's reply and reach a decision in accordance with the principles of natural justice. The Tribunal refrains from making any observations on the merits of the case, keeping all issues open for further consideration during the adjudication process. The order is pronounced in the open court, emphasizing transparency and adherence to legal procedures.