2012 (11) TMI 306 - AT - Customs

Demand of duty - Held that - As the appellants are yet to receive some documents and they have not been afforded the reasonable opportunity to defend themselves against the show-cause notice wherein the impugned demands have proposed to be recovered from them, therefore, there is a violation of principles of natural justice. Set aside the impugned order and remand back to the adjudicating authority to adjudicate afresh after giving the documents mentioned to the appellants keeping all issues open.

Summary

Issues: Violation of principles of natural justice due to non-supply of essential documents and lack of opportunity to defend against the show-cause notice.

Paragraph-wise detailed analysis:

1. The appellant appealed against an order and applied for stay of the demands, while the revenue filed an appeal for not imposing a penalty. The Ld. Counsel argued that the impugned order merely mirrored the show-cause notice, and they were not given a fair chance to be heard as essential documents were provided late, violating natural justice principles.

2. The Ld. Counsel highlighted that despite receiving some documents in September 2010, crucial documents were still missing. These documents included agreements, invoices, statements, and declarations necessary for the appellant's defense. The delay in providing these documents infringed upon the appellant's right to a fair hearing.

3. The specific documents yet to be supplied included agreements between Techpacific, ACI Infocom, and Microsoft, invoices from various distributors, and statements from key individuals. The absence of these documents hindered the appellant's ability to present a complete defense, emphasizing the significance of procedural fairness.

4. The Tribunal acknowledged the appellant's predicament, noting the failure to provide crucial documents and the resulting denial of a reasonable opportunity to defend against the allegations. Consequently, the impugned order was set aside, and the case was remanded to the adjudicating authority for a fresh adjudication after ensuring the provision of all outstanding documents to the appellant.

5. The Tribunal disposed of the stay application and appeals from both parties in light of the aforementioned violations of natural justice. Additionally, cross objections raised by the assessee in the revenue's appeal were also resolved following the decision to remand the case for a fair and comprehensive adjudication, upholding the principles of procedural fairness and due process.