2000 (8) TMI 575 - AT - Central Excise

Summary

Issues:
1. Failure to grant personal hearing before passing the order.
2. Alleged violation of principles of natural justice.
3. Appellants' delay in filing replies to show cause notice.
4. Setting aside the impugned order and remanding the matter back to the Adjudicating Authority.

Analysis:

1. Failure to grant personal hearing before passing the order:
The appellants, engaged in computer system maintenance and supply, received a show cause notice under the Central Excise Act. Despite requesting multiple adjournments for filing a reply, they later changed their counsel due to the illness of the previous one. The Adjudicating Authority confirmed demands and imposed penalties without granting a personal hearing. The Tribunal held that without a specific waiver of personal hearing, the order prejudicial to the appellants' interest cannot be passed. Citing legal precedents, the Tribunal set aside the impugned order and remanded the matter for allowing the appellants to file their reply and providing a personal hearing.

2. Alleged violation of principles of natural justice:
The appellants' new counsel argued that even if the communication about changing the counsel was not received by the Adjudicating Authority, it should have granted a personal hearing before passing an order against the appellants. The lack of a written communication waiving personal hearing was emphasized, leading to the assertion that the impugned order was legally flawed. The Tribunal agreed that the absence of a waiver necessitated the provision of a personal hearing, highlighting the importance of adhering to principles of natural justice in quasi-judicial proceedings.

3. Appellants' delay in filing replies to show cause notice:
Acknowledging the appellants' repeated adjournments in submitting their reply to the show cause notice, the Tribunal noted the appellants' deposit of an amount exceeding their liability. Despite the delay, the Tribunal directed the appellants to promptly file their reply to the notice, expressing displeasure at their tardiness in responding to the authorities' communication.

4. Setting aside the impugned order and remanding the matter back to the Adjudicating Authority:
In light of the failure to provide a personal hearing and the absence of a waiver thereof, the Tribunal set aside the impugned order. The matter was remanded to the Adjudicating Authority with instructions to allow the appellants to file their reply and offer a personal hearing. The Tribunal also highlighted the need for the appellants to expedite the filing of their response to the show cause notice, emphasizing the importance of timely compliance with legal procedures.

Overall, the judgment focused on upholding procedural fairness, ensuring the appellants' right to be heard, and emphasizing the significance of complying with principles of natural justice in adjudicatory processes.