2019 (9) TMI 801 - HC - Customs

Violation of principles of Natural Justice - request for adjournment of the counsel on 05.06.2008, rejected - opportunity of personal hearing not granted - HELD THAT - The counter filed by the respondent does not dispute the sequence of facts but only states that, in the opinion of the respondent, an opportunity for either cross-examination, as sought for by the assessee, or for a hearing, is not mandatory - I am unable to accept this contention, as a personal hearing during the conduct of adjudication, particularly when specifically sought for, is in line with the principles of natural justice, and ought to have been granted. There has been a breach of the principle of natural justice in the matter and I thus, have no hesitation in setting aside the impugned order - petition allowed.

Summary

Issues: Violation of principles of natural justice in the adjudication process.

In this case, the petitioner challenged an order-in-original passed by the Commissioner of Customs, Central Excise & Service Tax, primarily on the ground of violation of principles of natural justice. The documents relied upon by the adjudicating authority were furnished to the petitioner after a significant delay, and a notice of hearing was issued for adjudication. However, the petitioner's counsel requested an adjournment due to the senior counsel's vacation, which was not communicated properly. Despite the request, the respondent proceeded to pass the impugned order after a considerable delay, without conveying the rejection of the adjournment request to the petitioner. The High Court noted that a personal hearing, especially when specifically sought for, is essential in line with the principles of natural justice. The Court found a breach of natural justice principles in the matter and set aside the impugned order.

The High Court directed the petitioner to appear before the Assessing Officer along with all supporting documents. It was emphasized that attendance on the specified date was crucial, failing which the impugned order would stand reiterated. The Assessing Authority was instructed to pass a fresh order of assessment after hearing the petitioner and considering all documents by a specified deadline. The writ petition was allowed, and connected miscellaneous petitions were closed without any costs being imposed.