2021 (2) TMI 1102 - HC - Central Excise

Principles of Natural Justice - serious grievance on the part of the petitioner is that not only there has been no specific order passed by the concerned authority denying the opportunity of cross examination to the petitioner, it has chosen to decide both the show cause notices in a common order, which has been passed on dated 4.9.2020 without even availing opportunity of hearing - HELD THAT - So far as insistence on the part of the petitioner for personal hearing is concerned, the Court is not inclined to entertain that plea as the virtual hearing is being conducted right from the time the lock-down had been effected, even in those matters which are quite contested and one of them is the present matter also. So far as the request of cross examination made by the petitioner dated 19.8.2020 is concerned, we notice that in the Order-in-Original itself, the authority concerned has denied such right to the petitioner without passing any separate order even on noticing the decision of this Court in case of Mahek Glazes Pvt. Ltd. 2013 (7) TMI 128 - GUJARAT HIGH COURT . Accordingly, let notice for final disposal as well as for interim relief be issued, returnable on 16.2.2021.

Summary

Issues involved:
1. Absence of opportunity of hearing
2. Non-passing of the order of cross-examination prior to final adjudication of show cause notices
3. Non-availment of any opportunity of hearing (virtual as well as physical) regarding the second show cause notice

Analysis:

Issue 1: Absence of opportunity of hearing
The petitioner, engaged in manufacturing S.S. Bilets/Ingots, Angles, Bars, Flates, registered with Central Excise Department, received show cause notices proposing confiscation of goods and penalties. The petitioner requested a personal hearing due to the pandemic and submitted a separate application for cross-examination. The petitioner raised concerns about the lack of a specific order denying cross-examination and the common order passed without a hearing for the second show cause notice. The petitioner approached the Court questioning the Order-in-Original on grounds of no opportunity of hearing.

Issue 2: Non-passing of the order of cross-examination
The petitioner specifically highlighted the absence of a specific order denying cross-examination and the decision of the authority to decide both show cause notices in a common order without a hearing. The petitioner sought relief, including setting aside the decision and directing the authority to allow cross-examination of specified persons. The Court noted the denial of the right to cross-examination in the Order-in-Original without a separate order, despite the petitioner's request.

Issue 3: Non-availment of any opportunity of hearing
The Court considered the petitioner's request for personal hearing in light of the virtual hearing arrangements during the pandemic. While the Court acknowledged the availability of alternative remedies, it also recognized the importance of natural justice principles, citing relevant legal precedents. The Court decided to issue notice for final disposal and interim relief, considering the breach of natural justice principles regarding cross-examination.

In conclusion, the judgment addresses the petitioner's grievances regarding the absence of a hearing opportunity, non-passing of the order for cross-examination, and the denial of a hearing for the second show cause notice. The Court's decision to issue notice for final disposal and interim relief reflects a balanced approach considering the legal principles of natural justice and the specific circumstances of the case.