1971 (6) TMI 12 - HC - Customs

Summary

Issues:
1. Application for dispensing with deposit not disposed of properly.
2. Proper exercise of discretion under section 129 proviso.
3. Requirement of quasi-judicial manner in decision-making.
4. Hearing parties before disposing of the application.
5. Setting aside the appellate order and remanding the matter for proper hearing.

Analysis:
The judgment pertains to a Civil Rule challenging an appellate order passed by the Collector of Customs. The petitioner had appealed against a penalty imposed for short landing of materials, but the appeal was rejected for non-compliance with the deposit requirement under section 129 of the Customs Act, 1962. The petitioner had applied for dispensing with the deposit under the proviso of section 129, which allows for discretion if undue hardship is established. The Court emphasized that authorities must act in a quasi-judicial manner and hear the parties before making a decision under the proviso. It cited a Supreme Court case where the appellant was heard before a decision was made on reducing the deposit amount. In this case, the Court found that the petitioner was not given a hearing before the application was disposed of, leading to the appellate order being set aside. The matter was remanded for proper hearing in accordance with law, allowing parties to present their arguments.

The Court highlighted the importance of following a quasi-judicial approach in deciding on applications for dispensing with deposits under section 129 proviso. It noted that hearing the parties is crucial for determining undue hardship and exercising discretion properly. The judgment emphasized that applicants must be given an opportunity to present their case before a decision is made, as seen in a precedent set by the Supreme Court. The Court's decision to set aside the appellate order was based on the failure to provide a hearing to the petitioner before disposing of the application, underscoring the need for procedural fairness and adherence to legal requirements.

In conclusion, the Court made the Rule absolute, setting aside the appellate order and directing the matter to be reheard by the Appellate Officer under section 129 proviso in compliance with legal procedures. The judgment aimed to ensure that the parties' rights and contentions are preserved while emphasizing the necessity of a quasi-judicial approach and procedural fairness in decision-making processes related to dispensing with deposit requirements under the Customs Act.