2018 (8) TMI 2015 - HC - Customs

Principles of natural justice - impugned order records a finding that, the petitioner did not submit any reply - HELD THAT - Non-appearance of the petitioner in the hearing, does not mean that, the authorities will ignore the reply submitted by the petitioner in its entirety. In the present case, the adjudicating authority did not take into consideration the reply submitted by the petitioner while deciding the show cause notice - In such circumstances, the Court is constrained to hold that, the impugned order stands vitiated by breach of principles of natural justice. The impugned order is set aside - Petition disposed off.

Summary

Issues: Challenge to order-in-original based on breach of natural justice

Analysis:
1. Issue of Breach of Natural Justice: The petitioner challenged an order-in-original dated June 29, 2018, citing a breach of natural justice. The petitioner had submitted replies to the show cause notice, but the impugned order erroneously stated that no reply was submitted. The petitioner contended that the order was vitiated due to this factual error.

2. Contentions of Petitioner: The petitioner's advocate argued that although the impugned order was appealable, it suffered from a breach of natural justice as it did not consider the replies submitted by the petitioner. The petitioner had responded to the show cause notice, and the authorities had received those replies. The petitioner's position was that the order was based on an incorrect premise regarding the absence of a reply.

3. Contentions of Respondent: On the other hand, the respondent's counsel stated that the petitioner had been given three opportunities for a hearing, but the petitioner failed to appear on all occasions. The respondent argued that non-appearance did not mean the authorities could disregard the petitioner's replies entirely. However, the adjudicating authority had not taken the petitioner's submissions into account when passing the impugned order.

4. Judgment: The Court found that the impugned order indeed suffered from a breach of natural justice due to the failure to consider the petitioner's replies. Consequently, the order was set aside. The Court clarified that this decision did not prevent the authorities from reinitiating the proceedings based on the show cause notice, starting from the stage of receiving the reply or any other appropriate stage as determined by the adjudicating authority.

5. Disposition: The writ petition was disposed of with no order as to costs. The Court directed that urgent certified website copies of the order would be made available to the parties upon completion of the necessary formalities.