1986 (9) TMI 240 - AT - Central Excise

Issues:
1. Bias of the adjudicating authority in the impugned order.
2. Violation of principles of natural justice in the adjudication process.
3. Legal infirmity due to personal visit of the adjudicating authority to the appellant's premises during adjudication.
4. Use of personal observations and answers elicited during the visit in the adjudication order.
5. Incorrect charging sections and ambiguity in the show cause notice.
6. Error in the impugned order regarding confiscation and corrigendum issued.

Detailed Analysis:
1. The appeal was against the order confiscating confectionery machineries of Indian origin and imposing fines under various sections of the Customs Act, 1962. The appellant's representative argued that the adjudicating authority showed bias by incorporating personal knowledge and a visit to the appellant's premises during the adjudication process. The learned consultant contended that the impugned order was vitiated by this bias, affecting the decision against the appellant.

2. The issue of violating the principles of natural justice arose due to the adjudicating authority's personal visit to the appellant's factory and incorporating the information gathered during the visit in the adjudication order. The tribunal emphasized that in quasi-judicial matters, adherence to natural justice principles is fundamental. The authority's actions were deemed to violate legal norms and procedures, compromising the fairness and objectivity of the adjudication process.

3. The legal infirmity stemmed from the adjudicating authority's personal visit to the appellant's premises during the adjudication, where the authority interacted with the appellant and used the information obtained in the impugned order. The tribunal highlighted that such actions compromised the authority's impartiality and objectivity, essential in quasi-judicial proceedings. Citing relevant case law, the tribunal emphasized that personal observations should not replace evidence and that parties must be given an opportunity to respond to any adverse inferences drawn.

4. The judgment discussed the improper use of personal observations and answers elicited during the adjudicating authority's visit to the appellant's premises. The tribunal underscored that incorporating such information without affording the affected party an opportunity to respond violates the principles of natural justice. The tribunal referenced previous rulings to emphasize the importance of maintaining objectivity and fairness in adjudication processes.

5. An additional issue was the incorrect application of charging sections and ambiguity in the show cause notice. The tribunal noted discrepancies in the description of the machineries' origin and the charging sections mentioned in the notice. The corrigendum issued to rectify errors in the show cause notice and the impugned order highlighted the confusion in the original documentation, indicating a lack of clarity and precision in the adjudication process.

6. Lastly, the tribunal addressed an error in the impugned order regarding the confiscation of the machineries and the issuance of a corrigendum. The tribunal pointed out that the impugned order contained an error in the wording related to confiscation, which was rectifiable under the Customs Act, 1962. Due to the bias and legal infirmity in the impugned order, the tribunal set aside the decision and remitted the matter for re-adjudication by a different authority to ensure compliance with the principles of natural justice.

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