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Issues: Violation of natural justice in passing the order without due consideration of adjournment request.
In the judgment by the Appellate Tribunal CEGAT, MUMBAI, the appeal was made against the order of the Commissioner of Customs, Kandla, dated 25-8-2000. The case involved a unit in the Kandla Free Trade Zone manufacturing recycled plastic scrap entitled to exemption from customs duty on imported raw materials under Notification 133/94-Cus. The raw materials imported were destroyed in a fire, leading to a shortage. The Revenue proposed duty recovery on the short materials, alleging non-use for the intended purpose, and penalization. The appellants contested the show cause notice. The Commissioner proceeded with the hearing on 21-8-2000 despite requests for adjournment, resulting in the impugned order. The appeal challenged the order on grounds of violation of natural justice. The Advocate for the appellants argued that the destruction of raw materials in the fire was undisputed, imported with the intent for manufacturing final products as per the notification. The non-utilization was beyond the appellants' control, entitling them to duty remission under Section 23 of the Customs Act. The impugned order was deemed erroneous. The violation of natural justice was emphasized, as the Commissioner ignored requests for adjournment despite the complexity and high stakes involved. The JDR attempted to defend the order but conceded that the adjournment request was not considered. The Tribunal found that the Commissioner passed the order hastily, not adhering to natural justice principles. The matter required detailed consideration of notification provisions and relevant laws due to its complexity and high stakes. Consequently, the impugned order was set aside, and the appeal was allowed for remand. The Commissioner was directed to re-examine the dispute, ensuring a fair hearing for the appellants and issuing a detailed speaking order in compliance with natural justice and legal provisions.
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