1998 (8) TMI 187 - AT - Central Excise

Summary

Issues:
Alleged evasion of duty, confiscation of goods, imposition of penalty, violation of principles of natural justice.

Alleged Evasion of Duty, Confiscation of Goods, Imposition of Penalty:
The case involved a show cause notice issued to the appellants for manufacturing package tea without paying duty as required by law. Central Excise Officers seized packed tea and packets from the trading premises. The appellants were accused of clearing a significant amount of packet tea without duty payment, contravening Central Excise Rules to evade duty. The Additional Collector of Central Excise confirmed the duty amount, confiscated the seized goods, and imposed a penalty. The appellant challenged the order before the Tribunal.

Violation of Principles of Natural Justice:
The appellant's advocate argued that the evidence considered for duty evasion, confiscation, and penalty imposition differed from that in the show cause notice. The advocate contended that the adjudicating authority exceeded the allegations in the notice by relying on undisclosed evidence. The Tribunal acknowledged the violation of natural justice principles due to reliance on undisclosed evidence. Consequently, the Tribunal set aside the impugned order and remanded the matter for fresh adjudication, ensuring the appellants had the opportunity to respond to all materials used against them.

De Novo Adjudication and Additional Pleas:
The Tribunal allowed the appellant to present any defense, including invoking Notification 175/86-C.E., during the fresh adjudication. The adjudicating authority was directed to consider all pleas and evidence presented by the appellant in the new proceedings. The Tribunal emphasized the importance of upholding natural justice principles and ensuring that all evidence relied upon was disclosed to the appellants for a fair adjudication process.