2018 (3) TMI 1483 - AT - Central Excise

Clandestine removal - penalty - principles of natural justice - Held that - The Original Authority had not followed the principles of natural justice. He has decided the issue against the present appellant without hearing them. One of the principles of natural justice is that nobody should be condemned unheard - appeal allowed - decided in favor of appellant.

Summary

Issues: Appeal against penalty imposition under Rule 26 of Central Excise Rules, 2002 without following principles of natural justice.

Analysis:
1. Background: The case involved appellants engaged in transportation business where goods were seized leading to a proposal for penalty imposition under Rule 26 of Central Excise Rules, 2002. The matter was adjudicated, and a penalty of ?5 lakhs was imposed, which was challenged before the Tribunal.

2. Tribunal's Decision: The Tribunal remanded the matter back to the Original Authority for de-novo adjudication, directing consideration of the demand raised against the manufacturer and reevaluation of the penalty for the appellant involved in transportation of goods. Subsequently, the Original Authority imposed a penalty of ?5 lakhs on the appellant, leading to the current appeal before the Tribunal.

3. Appellant's Argument: The appellant contended that the Order-in-Original was passed without hearing them, violating the principles of natural justice. The appellant sought the appeal to be allowed based on this ground.

4. Revenue's Suggestion: The Learned A.R. suggested remanding the matter to the Original Authority once again.

5. Tribunal's Analysis: After hearing both sides, the Tribunal noted that the Original Authority had not followed the principles of natural justice. The Order-in-Original was passed without giving the appellant an opportunity to be heard, which is a fundamental aspect of natural justice. The Tribunal emphasized that no one should be condemned unheard, highlighting a violation of this principle in the case. Consequently, the Tribunal found the Order-in-Original related to the appellant not in accordance with the law and unsustainable.

6. Final Decision: The Tribunal set aside the part of the Order-in-Original concerning the appellant and allowed the appeal, emphasizing the importance of adhering to the directions of the Hon'ble High Court and ensuring the principles of natural justice are followed in legal proceedings.

This detailed analysis of the judgment highlights the issues involved, the arguments presented, and the Tribunal's decision based on the violation of natural justice principles in the imposition of penalties under the Central Excise Rules, 2002.