2018 (2) TMI 1893 - AT - Customs

Principles of Natural Justice - prohibiting Custom Broker from operating in the port - applicant submits that in gross-violation of principles of natural justice, without affording an opportunity of hearing to the appellant, the prohibition order has been passed - HELD THAT - Even though the prohibition order was passed on 08.11.2017, from the record we do not find that an opportunity of hearing was extended to the appellant to explain their position before such order was passed. Needless to mention, this is gross violation of principles of natural justice and touches the very root of the matter. The matter is remanded to the adjudicating authority to follow the principles of natural justice and pass a fresh order accordingly.

Summary

Issues: Application for early hearing of appeal due to prohibition order at Mundra Port without opportunity of hearing. Violation of principles of natural justice.

In the judgment by the Appellate Tribunal CESTAT Ahmedabad, the issue revolved around an application seeking early hearing of an appeal due to a prohibition order at Mundra Port without affording an opportunity of hearing to the appellant. The applicant, a Custom Broker, was prohibited from operating at the port, and the appeal sought to challenge this order. The learned Advocate for the applicant argued that the prohibition order, passed on 08.11.2017, was a gross violation of natural justice as no opportunity of hearing was provided. The Broker license was set to expire on 18.02.2018, emphasizing the urgency for early hearing of the appeal. The Revenue's Authorized Representative had no objection to the early hearing application, leading to the appeal being taken up for disposal with the consent of both sides.

Upon hearing both parties, the Tribunal found that the appeal could be disposed of at that stage. It was noted that the prohibition order, issued without granting the appellant an opportunity to present their case, amounted to a severe violation of natural justice. The Tribunal emphasized that the lack of a hearing before passing such a significant order was a fundamental flaw. Consequently, the impugned order was set aside, and the matter was remanded to the adjudicating authority. The Tribunal directed the authority to conduct proceedings afresh, ensuring that the principles of natural justice were adhered to, and a new order was passed accordingly. The appeal was allowed by way of remand, and the application for early hearing was also disposed of.

In conclusion, the judgment highlighted the critical importance of upholding principles of natural justice in administrative decisions, emphasizing the need for a fair hearing before significant actions are taken against individuals or entities. The decision to set aside the prohibition order and remand the matter for fresh adjudication underscored the Tribunal's commitment to ensuring procedural fairness and due process in legal proceedings.