2016 (11) TMI 98 - AT - Central Excise

Clandestine removal of goods - shortages in the physical stock of yarn - ex-parte order - non receipt of SCN - principle of natural justice - Held that - appellants had not participated in the adjudication proceedings, claiming that the show cause notice was not received by them hence they cannot file reply to the show cause notice - Adjudicating Authority direectd to supply a copy of the show cause notice and all relied upon documents - matter remanded back.

Summary

Issues:
1. Non-receipt of show cause notice by the appellant.
2. Adjudication process and participation of the appellant.
3. Remand of the case for further proceedings.

Analysis:
1. The first issue revolves around the non-receipt of the show cause notice by the appellant, which led to their inability to participate in the adjudication proceedings. The appellant's advocate argued vehemently that the absence of receiving the notice hindered their ability to respond to the allegations. Despite their claims, the Adjudicating Authority confirmed the demand ex-parte, and the Commissioner (Appeals) upheld this decision. The appellant's contention regarding the non-receipt of the notice was rejected during the appeals process.

2. The second issue concerns the adjudication process and the participation of the appellant in the proceedings. The Revenue's Authorized Representative reiterated the findings of the Commissioner (Appeals) and acknowledged the possibility of remanding the matter for fresh adjudication. The appellant's advocate, in response, expressed willingness to receive the show cause notice for the purpose of participating in the proceedings without raising objections based on the notice being served at a later stage.

3. The final issue pertains to the remand of the case for further proceedings. The Member (Judicial) recognized that the appellant had not participated in the adjudication process due to the alleged non-receipt of the show cause notice. To ensure justice and completion of the adjudication process, the Member directed the Adjudicating Authority to provide the appellant with a copy of the show cause notice and all relevant documents. The appellant was given an opportunity to file their reply within a specified timeframe, and both parties agreed to expedite the adjudication process, aiming for completion within four months from the date of order receipt or communication. Consequently, the appeals were allowed by way of remand, emphasizing the importance of fair participation and due process in legal proceedings.