2021 (3) TMI 1468 - AT - Customs

Violation of principles of natural justice while rejecting the request of the respondent for allowing the benefit of MEIS Scheme - justification of Learned Commissioner (Appeals) remanding the matter to the adjudicating authority - HELD THAT - The adjudicating authority Vide Letter dated 12.06.2019 informed that amendment in shipping bill in respect of MEIS Scheme is not being allowed. Commissioner (Appeals) is agreed upon and even in the administrative capacity if any decision is taken which is adverse to the assessee the principles of natural justice needs to be followed. From the order of the Commissioner (Appeals) which is based on the various judgment that if any order is passed against the assessee the principles of natural justice has to be observed therefore we do not see any infirmity in the order of the Commissioner (Appeals). The Commissioner (Appeals) has remanded the matter as an open remand and all the issue are open before the adjudicating authority to decide therefore, there cannot be any grievances by the revenue against such order. The impugned order is upheld, revenue s appeal is dismissed.

Summary

Issues:
Appeal against remand order for MEIS Scheme benefit due to lack of following natural justice principles.

Analysis:
The appeal was directed against an order-in-appeal (O-I-A) where the Commissioner (Appeals) remanded the matter to the adjudicating authority due to the non-observance of natural justice principles in rejecting the respondent's request for the benefit of the MEIS Scheme. The Assistant Commissioner for the appellant argued that all documents were available before the Commissioner (Appeals) and the matter should have been decided on merit without remanding it. On the other hand, the respondent's counsel contended that the remand order was appropriate as it allowed for a decision on merit and highlighted that the Gujarat High Court had allowed the benefit of the MEIS Scheme in similar cases. The Tribunal examined the submissions and records and found that the adjudicating authority had informed that amending the shipping bill for the MEIS Scheme was not allowed. The Tribunal agreed with the Commissioner (Appeals) that natural justice principles must be followed even in administrative decisions adverse to the assessee.

The Commissioner (Appeals) order stated that the principles of natural justice were not observed, and remanding the case was necessary to meet the ends of justice. The order cited various judgments emphasizing the importance of natural justice when passing orders with adverse consequences for the appellant. The Tribunal found no infirmity in the Commissioner (Appeals) order, which was based on legal precedents requiring the observance of natural justice when passing orders against the assessee. The open remand allowed all issues to be considered by the adjudicating authority, and the Tribunal upheld the impugned order, dismissing the revenue's appeal.

In conclusion, the Tribunal upheld the remand order due to the failure to follow natural justice principles in rejecting the respondent's request for the MEIS Scheme benefit. The order emphasized the necessity of observing natural justice in administrative decisions with adverse consequences for the appellant, as established by legal precedents. The open remand allowed for a comprehensive consideration of all issues by the adjudicating authority, ensuring a just outcome in the case.