2016 (12) TMI 1309 - AT - Customs

Fraudulent sale of advance licence - Held that - in absence of rebuttal of the charges leveled against them, the learned Commissioner had no option but to decide the case on the basis of the evidences available on record - I am of the opinion that M/s R.K. Impex be given an opportunity to defend their case before the Adjudicating Authority, to which both sides fairly accept - appeal allowed by way of remand.

Summary

Issues involved:
Appeal against OIO, Allegation of fraudulent sale of advance licenses, Exoneration of one party, Penalty imposed on present appellant, Lack of response to Show Cause Notice, Request for remand, Opportunity to defend the case, Time limit for case disposal, Directions for filing reply and participation in adjudication proceeding.

Analysis:
The judgment pertains to an appeal against OIO issued by the Commissioner of Customs, Kandla, regarding the fraudulent sale of advance licenses. The appellant, along with six others, was issued a Show Cause Notice, alleging fraudulent activities. The appellant did not respond to the Notice, leading to the imposition of a penalty. The learned Advocate representing the appellant acknowledged the lack of response and expressed willingness to file a reply and participate in the adjudication proceeding.

The Authorized Representative for the Revenue argued that in the absence of a rebuttal from the appellant, the Commissioner had to base the decision on available evidence. However, the Revenue did not object to remanding the case to the Adjudicating Authority for further proceedings. The Tribunal noted that while one of the Noticees was exonerated, the appellant faced penalties due to non-participation in the proceedings.

After considering the submissions and evidence, the Tribunal found it necessary in the interest of justice to provide the appellant with an opportunity to defend their case before the Adjudicating Authority. Both sides agreed to this remand. The Revenue Representative suggested fixing a time limit for case disposal, with a directive for the Commissioner to decide the case within twelve weeks. The appellant's Advocate was directed to file a reply to the Show Cause Notice within four weeks and actively participate in the adjudication proceeding without unnecessary adjournments.

Ultimately, the appeal was allowed by way of remand, granting the appellant the opportunity to present their case and participate in the adjudication proceedings. The judgment emphasized the importance of due process and active participation in legal proceedings to ensure a fair and just outcome.