2024 (7) TMI 627 - AT - Customs

Benefit of concessional rate of duty under N/N. 46/2011-Cus dated 01.06.2011 - violation of Rules of origin (ROO) - absence of documents relied upon by the department - violation of principles of natural justice - HELD THAT - It is found that in this case, investigation was conducted by DRI- Mumbai and after the investigation, show cause notice was issued relying upon the information/documents collected during the investigation. Before filing reply to the show cause notice the appellant requested the department to provide them the copies of various documents/information relied upon in the show cause notice so that appellant can properly file their reply and defend them. It is found that not supplying these documents to the appellant would defeat and violate their fundamental rights of fair hearing inbuilt in the principles of natural justice - all the documents demanded by the appellant do not fall in the category of privilege and confidential documents more so when they have been relied upon while passing the impugned order. Matter remanded back to the Ld. Commissioner to pass fresh order; after complying with the principles of natural justice and after supplying them the copies of those documents which have been relied upon while passing the impugned order - appeal allowed by way of remand.

Issues Involved:
1. Confirmation of demands for customs duty, interest, and penalties by the Commissioner of Customs.
2. Alleged violation of Rules of Origin (ROO) in the import of Tin ingots.
3. Denial of specific relied upon documents by the department leading to an ex-parte adjudication order.
4. Violation of principles of natural justice in passing the impugned order.

Confirmation of Demands:
The appeal challenged the Commissioner of Customs' order confirming demands for customs duty, interest, and penalties. The Commissioner upheld demands amounting to Rs.1,88,66,613, invoking the extended period of limitation. The penalties were imposed under Sections 114A and 114AA of the Customs Act, 1962. The appellant, M/s J.S.W. Vallabh Tin Plates Private Limited, was directed to pay the confirmed amounts and penalties.

Alleged Violation of Rules of Origin:
The case involved the import of Tin ingots under tariff item no. 80011090 by the appellant from overseas suppliers. The Department of Revenue Intelligence (DRI) initiated an investigation based on alleged violations of Rules of Origin (ROO). The appellant's eligibility for concessional duty rates under Notification No. 46/2011-Cus dated 01.06.2011 was questioned. The rules required proving the origin of goods and compliance with specific criteria, including the ASEAN-INDIA FREE TRADE AREA (AIFTA) content and rules regarding non-originating materials.

Denial of Specific Relied Upon Documents:
The appellant repeatedly requested specific relied upon documents from the department, essential for filing a comprehensive reply to the show cause notice. Despite multiple requests, the department did not provide the documents, leading to an ex-parte adjudication order. The appellant argued that the lack of access to these documents hindered their ability to defend against the allegations effectively.

Violation of Principles of Natural Justice:
The appellant contended that the impugned order was unsustainable and violated principles of natural justice. The appellant's consultant argued that the order was passed without proper appreciation of facts and law. The department's denial of crucial documents deprived the appellant of a fair opportunity to respond adequately. The Tribunal found that the failure to provide relied upon documents infringed upon the appellant's right to a fair hearing, necessitating the setting aside of the impugned order.

The Tribunal, comprising HON’BLE Mr. S. S. GARG and HON’BLE Mr. P. ANJANI KUMAR, allowed the appeal by remanding the matter back to the Ld. Commissioner. The Tribunal held that the denial of specific relied upon documents violated the principles of natural justice. The Ld. Commissioner was directed to pass a fresh order within three months, ensuring compliance with the principles of natural justice by providing the appellant with copies of the documents relied upon during the adjudication process.

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