2021 (12) TMI 1346 - HC - Customs

Violation of principles of natural justice - auction of goods under seizure and confiscation - HELD THAT - Respondent No.2-Appellate Authority has clearly committed grave and serious error of law in coming to the conclusion that an opportunity was not required to be given before passing the impugned orders to say the least this approach of respondent No.2 Appellate Authority is clearly opposed and contrary to the principles of natural justice and the impugned order deserves to be quashed on this ground alone. The petition is hereby allowed.

Summary

Issues Involved:
1. Violation of principles of natural justice in appellate orders.
2. Request to quash the impugned Assessment Orders.
3. Remittal of the matter back to the Appellate Authority for reconsideration.

Analysis:

Issue 1: Violation of principles of natural justice in appellate orders
The petitioners sought a Writ of certiorari to quash the Order-in-Appeals dated 05.10.2021 passed by respondent No.2, alleging a violation of principles of natural justice. The Senior Counsel argued that the appellate authority refused to provide an opportunity to the petitioner, contending it was not required by law. It was emphasized that this refusal was against natural justice and contrary to the material on record. The court agreed with the petitioners, noting that the Appellate Authority had erred in concluding that no opportunity was necessary before passing the impugned orders. The court held that this approach was against the principles of natural justice.

Issue 2: Request to quash the impugned Assessment Orders
The impugned Assessment Orders at Annexures-A, A1, and A2 were set aside by the court. The court allowed the petition, highlighting that the orders dated 05.10.2021 and 06.10.2021 were to be quashed due to the violation of natural justice principles. The matter was remitted back to respondent No.2 for reconsideration afresh. The court directed that sufficient and reasonable opportunity be given to the petitioners for concluding the proceedings within four weeks from the date of receipt of the order. This direction was particularly crucial as the subject goods were perishable in nature.

Issue 3: Remittal of the matter back to the Appellate Authority for reconsideration
The court ordered the remittal of the matter back to respondent No.2 for a fresh reconsideration of the case. Emphasizing the perishable nature of the goods involved, the court directed the Appellate Authority to provide adequate opportunity to the petitioners for a fair resolution. The court's decision aimed to uphold the principles of natural justice and ensure a just outcome in the proceedings.