2007 (12) TMI 84 - AT - Customs

Non-appearance of assessee appellant on date of hearing - when the ad. authority is re-considering the issue almost after 7 years, it was incumbent upon him to grant another hearing if the appellant has not appeared on the date of personal hearing - there is a violation of principles of natural justice and the heavy duty liability of Rs.1.13 crores and almost equivalent penalty, could not be saddled without grant of personal hearing to the appellant - appeals are allowed by way of remand

Summary

Issues: Violation of principles of natural justice, confirmation of demand, imposition of penalty, grant of personal hearing, remand of the case

Violation of principles of natural justice:
The case involved a challenge against the confirmation of demand and imposition of penalty. The appellant argued that there was a violation of principles of natural justice as there was a delay in passing orders after a hearing, and subsequently, a rehearing was scheduled but the appellant could not attend due to unavailability of files. The appellant contended that a fresh hearing should have been granted due to the change in the adjudicating authority. The tribunal agreed that a personal hearing should have been granted when the adjudicating authority reconsidered the issue after almost 7 1/2 years. The tribunal held that the heavy duty liability and penalty could not be imposed without granting a personal hearing to the appellant, thus concluding a violation of principles of natural justice.

Grant of personal hearing:
The tribunal considered the submissions of both sides and noted that the last hearing where the appellant's counsel appeared was in 1999. Due to the change in the adjudicating authority, a personal hearing was scheduled in 2007, which the appellant could not attend. The tribunal emphasized that the adjudicating authority should have granted another hearing if the appellant did not appear on the scheduled date. The tribunal held that non-appearance on the specified date could not be held against the appellant. Consequently, the tribunal allowed the appeals by way of remand, directing the adjudicating authority to hear and dispose of the appeals within three months from the date of the order. The tribunal clarified that the appellant must appear before the adjudicating authority when granted a personal hearing, and failure to do so would not restrain the authority from disposing of the appeal.

Remand of the case:
In light of the violation of principles of natural justice and the need for a fresh hearing, the tribunal set aside the impugned order and remanded the matters back to the adjudicating authority. The adjudicating authority was instructed to conduct a new hearing and dispose of the appeals within three months from the date of the tribunal's order, ensuring that the appellant is granted a fair opportunity to present their case.