1994 (7) TMI 140 - AT - Central Excise

Summary

Issues:
Denial of principle of natural justice, lack of personal hearing, waiver of pre-deposit amount, remand of the matter for re-adjudication.

Detailed Analysis:

1. Denial of Principle of Natural Justice:
The appellant, M/s. Special Machines Multirod House, Karnal, Haryana, filed an appeal against the order passed by the Collector of Central Excise, New Delhi, alleging denial of the principle of natural justice due to the lack of a personal hearing. The appellant argued that despite being issued a Show Cause Notice and providing an interim reply, they were not granted a personal hearing before the order was passed. The appellant cited relevant cases to support their claim, emphasizing the importance of adherence to natural justice principles.

2. Lack of Personal Hearing:
The respondent, represented by Shri B.K. Singh, acknowledged that no personal hearing was granted to the appellant. It was argued that the appellant's delaying tactics and non-cooperation led to the ex parte order by the Collector. However, the respondent did not object to the remand of the matter, provided that it would be disposed of promptly within a month.

3. Waiver of Pre-deposit Amount:
Upon hearing both sides and reviewing the circumstances of the case, the Tribunal found that there was indeed a denial of principles of natural justice due to the absence of a personal hearing. Consequently, the Tribunal decided to dispense with the pre-deposit of duty amounting to Rs. 78,55,951/- and a penalty of Rs. 10 lakhs.

4. Remand of the Matter for Re-Adjudication:
The Tribunal set aside the impugned order and remanded the matter to the Collector of Central Excise with jurisdiction, directing them to dispose of the case within one month. The adjudicating authority was instructed to observe principles of natural justice, grant a personal hearing, and refrain from seeking extensions or granting adjournments. The stay application was allowed, and the appeal was allowed by way of remand, emphasizing the importance of ensuring procedural fairness in the re-adjudication process.

This judgment highlights the significance of upholding natural justice principles, particularly the right to a personal hearing before passing orders in excise matters. The decision to waive the pre-deposit amount and remand the case for re-adjudication underscores the Tribunal's commitment to fairness and due process in administrative proceedings.