1994 (7) TMI 139 - AT - Central Excise

Summary

Issues:
Denial of principle of natural justice due to lack of separate personal hearing for two Show Cause Notices.

Analysis:
The appellant filed an appeal against the order passed by the Collector of Central Excise, New Delhi, and also submitted a stay application supported by an affidavit. The appellant argued that they were issued two Show Cause Notices on different dates and that the reply for both notices was filed. However, the personal hearing was conducted earlier, and then a common order was passed for both notices, denying them the opportunity for a separate personal hearing for each notice. The appellant contended that this denial amounted to a breach of the principle of natural justice and would cause financial hardship if the full amount of duty was required to be deposited.

The Respondent, represented by Shri K.K. Jha, argued that since the issues were similar and the matter was heard on the same date, there was no requirement for separate personal hearings for each Show Cause Notice. They claimed that the appellant had been granted a hearing on the same date, so there was no denial of the principle of natural justice.

Upon considering the arguments from both sides and examining the facts of the case, the Tribunal noted that the adjudicating authority had called for personal hearings on various dates, and the final hearing took place on 18-1-1993. However, the Show Cause Notice dated 8-1-1993 was received by the appellant on or before 11-1-1993, and the reply to this notice was filed on 27-1-1993. The adjudicating order was dated 1-11-1993, indicating a delay in issuing the order after receiving the reply to the notice. The Tribunal referred to a previous case to emphasize the importance of offering a personal hearing unless waived by the appellant.

The Tribunal concluded that since there were two Show Cause Notices related to different consignments, it was necessary for the adjudicating authority to pass separate adjudicating orders for each notice. The Tribunal found that there was a denial of the principle of natural justice as the second Show Cause Notice did not receive a separate personal hearing. Therefore, the Tribunal set aside the impugned order and remanded the matter to the adjudicating authority with the direction to observe the principle of natural justice while readjudicating the case within three months. The Tribunal allowed the stay application and the appeal by way of remand, acknowledging the appellant's plea for a fair process.