2008 (2) TMI 161 - AT - Customs

Commissioner (Appeals) allowed the appeal of the Revenue holding that the refund is not allowable recording that opportunity of personal hearing was granted to assessee - Commissioner (Appeals) only recording that personal hearing was granted on three different dates there is no mention of those dates in the order - violation of the principles of natural justice matter remanded to reconsider the issue afresh after granting opportunity of personal hearing

Summary

Issues Involved:
Refund claim for excess payment of special excise duty, violation of principles of natural justice in passing the order-in-appeal.

Refund Claim for Excess Payment of Special Excise Duty:
The appellant filed a refund claim for Rs. 60,716/- due to an excess payment of special excise duty by oversight. The adjudicating authority sanctioned the refund claim within the time-limit. However, the Revenue appealed before the Commissioner (Appeals) who allowed the appeal, stating that the refund was erroneously sanctioned and the provisions of unjust enrichment would apply. The appellant, aggrieved by this decision, appealed to the Appellate Tribunal CESTAT, MUMBAI.

Violation of Principles of Natural Justice in Passing the Order-in-Appeal:
The grounds of appeal highlighted that the order-in-appeal was passed in violation of the principles of natural justice. The Commissioner (Appeals) mentioned that the respondents were given the opportunity for a personal hearing on three different dates, although no specific dates were mentioned in the order. The absence of specific dates led to a conclusion that there was a violation of natural justice principles. The Appellate Tribunal found that the order was passed without adhering to the principles of natural justice, making it unsustainable. Citing the settled law by the Apex Court that respondents must be heard before passing an order, the Tribunal set aside the impugned order and remanded the matter back to the Commissioner (Appeals) for reconsideration after granting a personal hearing to the appellant.

In conclusion, the Appellate Tribunal allowed the appeal by way of remand to the Commissioner (Appeals) due to the violation of natural justice principles in passing the order-in-appeal. The Tribunal emphasized the importance of adhering to procedural fairness and providing all parties with a fair opportunity to present their case before reaching a decision.