2022 (3) TMI 286 - AT - Customs

Mis-declaration and under valuation of imported goods - printed book catalogue - opportunity of personal hearing by the Original Adjudicating Authority not provided - violation of principles of natural justice - HELD THAT - None of the four noticees of the impugned show cause notice had marked their presence before the original adjudicating authority. Though three dates have been mentioned in the order as the date of personal hearing for all four of them, but it is specifically been recorded in para 39.2 of Order-in Original that the notice for three of these dates were received back undelivered from the postal authorities with respect to the Noticee No. 2, 3 and 4. It is also observed that no reasonable time was granted for these three dates as there has been two days gap in each of the dates (4.8.2017, 7.8.2017 and 9.8.2017). As far as the main noticee/importer is concerned, there is no such mention that notice served to him was received back undelivered . Still Noticee No. 1 has been granted opportunity of being heard by the Original Adjudicating Authority as his matter has been remanded for denovo adjudication. There is no reason in the Order-in-Appeal for distinct decision given for Noticee No.1 while denying the same opportunity of personal hearing to the remaining noticees including the present appellant. In the given circumstances and in the interest of justice, appellant s case along with that of Noticee No. 3 4 is on much better footings as there is apparent admission that notice could not be delivered upon him and the same was received back undelivered. As per principles of Audi Alteram Partam, the first principles of natural justice which requires that none should be condoned unheard, the findings of the Commissioner (Appeals) are held to be highly unreasonable and illegal. The same are accordingly hereby set aside. Matter of present appellant also is directed to be readjudicated denovo - appeal allowed by way of remand.

Summary

Issues: Mis-declaration and under-valuation of imported goods, violation of principles of natural justice, remand for fresh adjudication, absence of noticees during original adjudication, denial of opportunity of personal hearing.

The judgment pertains to the import of goods declared as "printed book catalogue" by a company from the USA, which were found to be Dietary Supplements upon examination, valuing at Rupees 1,21,45,550. The Department alleged mis-declaration and under-valuation, issuing a show cause notice proposing recovery and penalties under the Customs Act, 1962. The initial confirmation of the proposal was challenged through an appeal, which was subsequently rejected. The appellant argued that the order was passed in violation of natural justice as he was not granted a personal hearing, seeking a remand for fresh adjudication with proper hearing. The Department had no objection to remanding the matter for denovo adjudication.

Upon hearing both parties, it was noted that none of the noticees marked their presence during the original adjudication, with notices for three dates being returned undelivered for three noticees. The main importer was granted a hearing as the matter was remanded, but the same opportunity was not extended to the appellant and other noticees. The Tribunal found the denial of personal hearing to the appellant unjust, considering the admission that the notice could not be delivered to him. The judgment highlighted the importance of Audi Alteram Partam principle, emphasizing the need for all parties to be heard. Consequently, the findings of the Commissioner (Appeals) were deemed unreasonable and illegal, leading to a remand for fresh adjudication with proper opportunity for the appellant to present his case and for the matter to be decided on merits after receiving submissions on his behalf. The appeal was allowed by way of remand to ensure justice and adherence to natural justice principles.