2003 (1) TMI 158 - AT - Central Excise

Summary

Issues:
Allegation of suppression of removal of goods, denial of natural justice by the adjudicating authority, failure to provide relied-upon documents, imposition of penalties without proper hearing.

Analysis:
The case involved an allegation of suppression of removal of goods against the appellants by the central excise department. The show-cause notice required payment of duty and penalties. The appellants initially did not respond, but later requested copies of relied-upon documents for an effective reply. The Addl. Commissioner ignored this request and passed an order without granting a personal hearing, justifying it by claiming no explicit request for a hearing was made. The Commissioner (Appeals) upheld the decision, leading to the present appeal.

Upon review, the Member found a denial of natural justice by the adjudicating authority. The Addl. Commissioner's view that no hearing was requested due to the absence of a specific demand was deemed legally unsustainable. The appellants' request for documents was crucial for an effective response, and its dismissal amounted to a violation of natural justice. The failure to ask the party to show cause before an ex parte order further highlighted the lack of procedural fairness. The rule of audi alteram partem, requiring an opportunity to be heard unless waived, was emphasized. The Commissioner (Appeals) failed to adequately address the plea for natural justice, revealing a legal flaw in the order. Consequently, both previous orders were set aside, and the appeal was allowed for a remand.

The Member directed the adjudicating authority to provide authentic copies of relied-upon documents and issue a fresh speaking order after allowing the appellants a reasonable opportunity to be heard. The importance of adhering to principles of natural justice in quasi-judicial proceedings was underscored, emphasizing the necessity of granting a fair hearing to parties involved.