1993 (1) TMI 142 - AT - Customs

Summary

Issues:
Denial of principles of natural justice in issuance of show cause notice and short notice for hearings.

Analysis:
The appellants, M/s. B.L.V. Hatcheries and Shri K. Bhaskar Rao, filed appeals challenging an Order by the Additional Collector of Customs, New Delhi. The appellants argued that there was a denial of principles of natural justice as they did not receive a reply from the Department for 8 months after requesting an extension of time to file a reply to the show cause notice. The appellants also highlighted the short notice for hearings and non-availability of requested documents. The learned Advocate for the appellants contended that there was a denial of natural justice and requested the pre-deposit of duty and penalty amounts to be dispensed with. On the other hand, the JDR for the respondent argued that the documents requested were not relied upon by the Department, and the party could have inspected the records at the Customs House. The JDR acknowledged that if the duty and penalty amounts were dispensed with, he had no objection to the matter being remanded for further proceedings.

Upon review of the facts and arguments presented, the Tribunal observed that the notice of hearing was indeed very short, with only 4 days and 2 days given for appearance in different instances, despite the appellants' residence being in Hyderabad. The Tribunal noted that while the appellants did not make efforts to inspect the records seized by the Department, the short notice for hearings amounted to a denial of principles of natural justice. Consequently, the Tribunal decided to dispense with the pre-deposit of duty and penalty amounts based on this denial of natural justice. The Tribunal also granted the appellants the opportunity to inspect records or documents by a specified date and directed the Collector to readjudicate the matter within a set timeline, ensuring the observance of principles of natural justice and granting a personal hearing to the appellants.

In conclusion, the Tribunal set aside the impugned Order and remanded the matter to the Collector of Customs for further proceedings, emphasizing the importance of upholding principles of natural justice throughout the adjudication process. The appellants were given specific deadlines for actions, and the Collector was instructed to provide necessary assistance during the inspection of records and to ensure a fair and just readjudication of the case.