2016 (12) TMI 1871 - AT - Central Excise

Finalization of provisional assessment - Non-issuance of show cause notice - Demand of duty with interest - HELD THAT - it appears from the impugned order that there is no provision of issuance of show cause notice or granting any opportunity of personal hearing before the finalization of the provisional assessments. We also find that in Rule 9 B there is no provision of issuance of show cause notice or for granting any opportunity of personal hearing before the finalization of provisional assessment. Needless to mention that Rule 9B is pertaining to provisional assessment. But before us the dispute is regarding finalization of the assessment. When it is so, it appears that the principle of natural justice has not been followed as per the doctrine of AUDI ALTERAM PARTEM. The order set aside - Matter remanded back to the Commissioner (A) to pass fresh order on merit after providing a reasonable opportunity of hearing to the appellant. Fresh evidence, if need be, may be admitted as per law.

Summary

Issues:
1. Finalization of provisional assessment without show cause notice or opportunity of personal hearing.
2. Application of natural justice principles in the finalization of assessment.

Analysis:
1. The appellant challenged the finalization of provisional assessment without the issuance of a show cause notice or granting an opportunity of personal hearing. The Tribunal noted that Rule 9B, which pertains to provisional assessment, does not explicitly require the issuance of a show cause notice or an opportunity for personal hearing before finalization. The Tribunal emphasized the importance of following the principles of natural justice, specifically the doctrine of AUDI ALTERAM PARTEM, which requires that both parties be heard.

2. The Tribunal highlighted that although Rule 9B relates to provisional assessment, the dispute in question concerned the finalization of the assessment. The Tribunal concluded that the principle of natural justice had not been adhered to in the finalization process. Consequently, the Tribunal set aside the impugned order and remanded the matter back to the Commissioner (A) for a fresh order on merit. The Tribunal directed the Commissioner to provide a reasonable opportunity of hearing to the appellant and allowed the admission of fresh evidence if necessary, in accordance with the law.

In conclusion, the Tribunal allowed the appeal by remanding the matter for a fresh order, emphasizing the importance of following natural justice principles in the finalization of assessments.