2022 (8) TMI 1007 - AT - Customs

Levy of penalties upon the Appellants u/s 112(a) of the Customs Act, 1962 and under Section 114AA of the Customs Act, 1962 - alleged involvement of forged /fake VKGUY /DEPPB license and imports there under - opportunity of personal hearing not granted - requests for cross examination was also not considered by the Ld. Commissioner - violation of principles of natural justice - HELD THAT - In the impugned matter Appellants request for adjournment of hearing was not considered by the Ld. Commissioner. Moreover Appellant received the hearing notice dated 11.03.2014 on 19.03.2014 fixing personal hearing on 18.03.2014 i.e. after the date of hearing. The Appellant vide letter dated 21.03.2014 immediately informed the Ld. Commissioner that they received hearing notice after the date of hearing. However without considering the Appellant s request Ld. Commissioner has decided the matter ex-parte. It is also observed that the Appellants have sought for cross examination but the same was also not considered by Ld. Commissioner. It is the basic principle of the Natural justice that no one can be condemned unheard. Natural Justice is an un codified law purely based on principle of substantial justice and judicial spirit. Principles of Natural Justice are the cardinal principles, which must be followed in every judicial and quasi judicial proceeding. Authorities should exercise their powers fairly reasonably impartially in a just manner. They should not decide a matter in backside of the party. There is clear violation of natural justice. Therefore, ex-parte order passed by the Adjudicating Authority will not sustain - the matter remanded to the Adjudicating Authority for passing a fresh order after granting sufficient personal hearing. Appeals are allowed by way of remand to the Adjudicating Authority.

Summary

Issues:
Violation of principles of natural justice in passing the order imposing penalties under Sections 112(a) and 114AA of the Customs Act, 1962 without granting personal hearing or considering requests for adjournment and cross-examination.

Analysis:
The appeals were filed against the Order-In-Original imposing penalties on the Appellants for their alleged involvement in forged/fake VKGUY/DEPPB license and imports under Sections 112(a) and 114AA of the Customs Act, 1962. The Ld. Counsel for the Appellants contended that the order was passed in violation of natural justice as personal hearing was not granted, and the requests for adjournment and cross-examination were not considered by the Ld. Commissioner. The Ld. Commissioner claimed that the Appellants were granted personal hearing on specific dates, but the Appellants did not appear. However, the Commissioner failed to consider the requests for adjournment made by the Appellants, leading to a lack of fair opportunity for the Appellants to present their case.

The Appellants' counsel highlighted that the requests for cross-examination were also disregarded by the Ld. Commissioner, further emphasizing the violation of natural justice principles. The Superintendent representing the Revenue reiterated the findings of the impugned order. Upon hearing both sides and examining the records, the Tribunal concluded that the appeals could be disposed of solely based on the ground of natural justice. The Tribunal refrained from delving into the merits of the case and focused on the procedural irregularities.

The Tribunal observed that the Appellants' request for adjournment was not duly considered, and the Appellants received the hearing notice after the scheduled date, which was not taken into account by the Ld. Commissioner before deciding the matter ex-parte. Furthermore, the failure to address the request for cross-examination added to the violation of natural justice. The Tribunal emphasized the fundamental principle that no one should be condemned unheard and stressed the importance of fair, reasonable, and impartial exercise of powers in judicial proceedings.

In light of the clear violation of natural justice principles, the Tribunal set aside the impugned order against the Appellants and remanded the matter to the Adjudicating Authority for a fresh order after granting sufficient personal hearing. The Appeals were allowed by way of remand, emphasizing the significance of upholding principles of natural justice in judicial and quasi-judicial proceedings. The judgment was pronounced in the open court on 10.08.2022 by the Members of the Tribunal, highlighting the importance of fair procedures and adherence to natural justice principles in legal proceedings.