2016 (12) TMI 143 - AT - Central Excise

Rejection of refund claim - lack of evidence - Notification No 17/2009 dated 07.07.2009 - period from 13.12.2009 to 30.12.2010 - principles of natural justice - Held that - I find that the Order-in-Original is passed violating the principles of natural justice without according the appellants any opportunity to present their case. In view of the above, I remand the matter to the adjudicating authority for de-novo adjudication, directing him to accord reasonable opportunity to the appellant allowing them to raise all issues - appeal allowed by way of remand.

Summary

Issues:
Refund claim rejection based on service classification; Violation of principles of natural justice in passing the Order-in-Original.

Analysis:
The case involved a refund claim for Business Auxiliary services under a specific notification. A Show Cause Notice was issued proposing rejection of the claim due to service classification. The appellants requested time to reply, but an ex-parte order was passed without considering their plea. The Ld. Commissioner (Appeals) rejected the claim citing lack of evidence, ignoring the violation of natural justice. The Tribunal, after hearing both sides, found the Order-in-Original violated natural justice principles by not allowing the appellants to present their case. The matter was remanded for de-novo adjudication, with directions to provide a reasonable opportunity for the appellant to raise all issues. The appeal was allowed by way of remand with specific instructions for the adjudicating authority.

This judgment highlights the importance of adhering to principles of natural justice in administrative proceedings. It emphasizes the right of parties to present their case and the duty of the adjudicating authority to provide a fair opportunity for such presentation. The Tribunal's decision to remand the matter for de-novo adjudication underscores the significance of procedural fairness in legal proceedings, ensuring that all parties have a proper chance to be heard and address relevant issues. The ruling serves as a reminder of the fundamental principles that govern administrative actions and the consequences of failing to uphold these principles, leading to orders being set aside for violating natural justice.