Home Case Index All Cases Customs Customs + AT Customs - 1993 (2) TMI AT This
Issues:
Violation of principles of natural justice in passing order without a personal hearing. Analysis: The case involves a Stay Petition filed by the applicant against an order passed by the Collector of Customs (Appeals). The applicant/appellant had filed an appeal against a penalty imposed by the Deputy Collector of Customs. The Collector of Customs (Appeals) directed the applicant/appellant to deposit a sum of Rs. 10,000 without granting a personal hearing, which was requested by the applicant/appellant. The applicant/appellant filed an application to vary the order, but it was disposed of without a hearing. The Collector dismissed the appeal for non-compliance with the deposit order. The principles of natural justice require that a person should not be condemned before being heard, especially in matters of appeal and stay applications. The Collector's actions were deemed a violation of natural justice as the applicant/appellant was not given an opportunity to represent his case regarding the penalty deposit. The Tribunal emphasized the importance of granting a personal hearing in such cases. The Collector of Customs (Appeals) should consider two factors in deciding a Stay Petition: prima facie case and balance of convenience, as well as the hardship caused by deposit requirements. The failure to grant a personal hearing before ordering the deposit violates natural justice. The Tribunal cited precedent emphasizing that denial of natural justice is in itself sufficient prejudice, and decisions made without adherence to natural justice principles are derogatory to the rule of law. The Tribunal remanded the case to the Collector of Customs (Appeals) with a direction to grant a personal hearing to the applicant/appellant or their Counsel, consider the balance of convenience and hardship, and pass a speaking order on the Stay Petition before proceeding with the appeal in accordance with the law and principles of natural justice.
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