2018 (4) TMI 68 - HC - Central Excise

Principles of Natural Justice - According to the petitioners, along with the SCN, the authority had not provided copies of the relied upon documents - Held that - Even though the documents must be concerning the petitioners and seized from their custody, in absence of any proof suggesting that they had copies of such documents within their possession, the adjudicating authority could not have passed the order without supplying copies thereof to the petitioners - proceedings are remanded back to the adjudicating authority for fresh consideration - petition allowed by way of remand.

Summary

Issues: Challenge to order on breach of natural justice principles, non-supply of relied upon documents, duty demand confirmation, remand for fresh consideration.

In this case, the petitioners challenged an order dated 31.01.2017, alleging a serious breach of natural justice principles. The petitioners, engaged in metallization of polyester films, were issued a show cause notice for alleged undervaluation and clandestine removal of goods. They repeatedly requested copies of relied upon documents, crucial for their defense, but the authority proceeded without providing them. The respondents argued that since the documents were collected from the petitioners, they should have had copies. However, the court found that the documents were not supplied and were relied upon to confirm the duty demand, which invalidated the order. The court emphasized that without providing copies of relevant documents, the authority could not pass the order, as it would handicap the petitioners in their defense. Consequently, the impugned order was set aside, and the case was remanded back to the adjudicating authority for fresh consideration in compliance with the law, with a directive to supply all relied upon documents to the petitioners for a fair defense.

Overall, the judgment focused on the fundamental breach of natural justice principles in failing to provide relied upon documents to the petitioners, which affected their ability to defend against the duty demand. The court emphasized the importance of providing copies of such documents for a fair adjudication process. The decision to set aside the order and remand the case for fresh consideration highlighted the significance of upholding procedural fairness and ensuring that parties have access to all relevant information for a just outcome.