1992 (4) TMI 131 - AT - Customs

Summary

Issues:
Denial of natural justice due to failure to serve show cause notice leading to violation of principles of natural justice.

Analysis:
The judgment by the Appellate Tribunal CEGAT, CALCUTTA pertains to a case involving the seizure of synthetic fabrics of Japanese origin under the Imports and Exports (Control) Act, 1947 and the Customs Act, 1962. The appellant/applicant raised a crucial point of denial of natural justice as no show cause notice was served on them. The Tribunal granted absolute stay as the appeal was disposed of based on this fundamental issue.

The show cause notice issued to the appellant was returned with an endorsement of "not known," indicating non-delivery. Subsequently, a personal hearing notice was served on the appellant. The appellant's advocate informed the Adjudicating Authority that the show cause notice was not received, yet the impugned order was passed without proper service of the notice.

The appellant's representative highlighted that despite the appellant's communication about non-receipt of the show cause notice due to being out of station, and a request for re-delivery or an opportunity to appear before the Adjudicating Officer, the notice was not served effectively. The appellant's advocate reiterated the lack of service during the personal hearing, emphasizing a violation of natural justice principles.

The Tribunal, after considering arguments from both sides, concluded that the failure to serve the show cause notice deprived the appellant of a fair opportunity to respond to the allegations. Consequently, the impugned order was set aside only concerning the appellant, and the matter was remanded to the Adjudicating Authority. The Authority was directed to serve the show cause notice, allow time for a reply, issue a personal hearing notice, and dispose of the matter based on the appellant's submissions, ensuring adherence to natural justice principles.

In summary, the judgment underscored the significance of proper service of show cause notices to uphold the principles of natural justice, emphasizing the right of the appellant to a fair hearing and the opportunity to respond to allegations before any adverse order is passed.