2018 (6) TMI 1549 - AT - Central Excise

Principles of Natural Justice - the impugned order passed by the Ld. Commissioner (Appeals) has been passed without giving an opportunity of hearing to the Appellant-Revenue - Held that - It is settled legal position that justice should not only be done, also seen to be done. Before passing a final order the ld. Commissioner (Appeals) ought to have granted one opportunity to the Revenue to put forth their case, that too when he is allowing the appeal filed by the Assessee. As the respondent-assessee s appeal was decided ex-parte, the department has been denied an opportunity to put forth their case. Therefore without going into the merits of the matter it is in the interest of justice that the matter be remanded to the Appellate Authority - appeal allowed by way of remand.

Summary

Issues:
Appeal against Order-in-Appeal by the Revenue regarding confiscation of goods, redemption fine, and penalty. Violation of principles of natural justice due to lack of opportunity for the Revenue to present their case before the Commissioner (Appeals).

Analysis:
The appeal before the Appellate Tribunal CESTAT New Delhi was filed by the Revenue challenging the Order-in-Appeal issued by the Commissioner of Central Tax, Appeals-II, Delhi. The original proceedings involved a show cause notice dated 09.09.2014, leading to an Order-in-Original dated 12.01.2017 confirming the confiscation of goods worth &8377; 1,91,84,782/-, imposition of a redemption fine of &8377; 19,00,000/-, and a penalty of &8377; 5,00,000/-. The assessee-respondent appealed this decision before the Commissioner (Appeals), who allowed the appeal. The Revenue, feeling aggrieved, brought the matter before the Tribunal against the order dated 31.01.2018 issued by the Commissioner (Appeals).

During the proceedings, it came to light that the Order-in-Appeal by the Commissioner (Appeals) was passed without affording the Revenue an opportunity to present their case, which raised serious concerns regarding the violation of the principles of natural justice. The Revenue contended that no representation was made on their behalf during the personal hearing before the Commissioner (Appeals), leading to an ex-parte order being passed. The Tribunal noted that justice not only needs to be done but also seen to be done, emphasizing the importance of granting both parties a fair chance to present their arguments.

The Tribunal observed that the Commissioner (Appeals) allowed the appeal filed by the Assessee without hearing the Revenue, which was deemed a complete breach of the principles of natural justice. In light of these findings, the Tribunal decided that the matter should be remanded to the Appellate Authority, i.e., the Commissioner (Appeals), for a fresh order. This remand was deemed necessary to ensure that both parties have an equal opportunity to present their case and have their arguments considered before a final decision is made. The Tribunal allowed the appeal by way of remand, emphasizing the importance of upholding the principles of natural justice and ensuring a fair hearing for all parties involved.

The judgment was pronounced in open court on 29.06.2018, highlighting the significance of procedural fairness and adherence to the principles of natural justice in legal proceedings.