2018 (1) TMI 768 - HC - Central Excise

Maintainability of appeal - supply of the documents which sought to be relied - Held that - the issue is covered by the decision of the Supreme Court in Kothari Filaments vs. Commissioner of Cus. (PORT), Kolkata 2008 (12) TMI 28 - SUPREME COURT , and it was binding upon the officer to follow the said decision, otherwise any damage to the petitioner will be recovered from erring officer for not following the judgments which are binding and it will be open for the court to pass an appropriate order for recovery of the amount from the officer - this exparte order is passed in view of the fact that inspite of representation made for supplying documents, the same has not been supplied. The officer will now act in accordance with law and will not proceed arbitrarily, without giving proper opportunity to the petitioner. Petition disposed off.

Summary

Issues:
1. Quashing of show cause notice
2. Supply of documents for defense reply
3. Violation of principles of natural justice

Quashing of Show Cause Notice:
The petitioner sought relief to quash the proceedings initiated by a show cause notice, citing contradiction to departmental circulars. The counsel contended that the notice was issued without supplying relied-upon documents, violating principles of natural justice. Legal precedents were referenced, emphasizing the right to know the contents of documents for an effective reply. The court highlighted that the Act does not prohibit the application of natural justice principles and ruled in favor of the petitioner based on established legal principles.

Supply of Documents for Defense Reply:
The petitioner requested the respondent to supply unrelied-upon documents and RTI documents for a complete defense reply. The court referenced a previous decision emphasizing the requirement for basic documents to be supplied to the party taking action. The matter was remitted back to the first authority for settlement within a specified timeframe after supplying the necessary documents to the appellant, ensuring compliance with principles of natural justice.

Violation of Principles of Natural Justice:
The petitioner contended that the officer's actions increased litigation due to arbitrary pleas and failure to supply requested documents. The court deprecated this practice, emphasizing the importance of following legal precedents and providing proper opportunities to the petitioner. It was highlighted that failure to comply with binding judgments could lead to recovery of damages from the erring officer. The court disposed of the petition, instructing the officer to act in accordance with the law and avoid arbitrary proceedings in the future.