2012 (12) TMI 466 - AT - Central Excise

Waiver of pre-deposit of the duty demand and penalty assessee contested against violation of principle of natural justice Held that - Non supply of documents have prevented the appellant to properly defend the show cause notice and case decided even after stay order by High Court - matter remanded back to Com.(Adjudication) who shall also give an opportunity of being heard to the appellant to cross-examine the relevant witnesses.

Summary

Issues:
Appeal against duty demand, penalty, and violation of stay order.

Analysis:
The appeal was filed against an order confirming a duty demand, penalty, and violation of a stay order. The appellants sought waiver of the pre-deposit condition during the argument on stay applications. The appellant's counsel argued that the order was passed in contravention of a stay order by the High Court of Rajasthan, making it legally unsustainable. The counsel contended that the Commissioner failed to supply all relied upon documents despite requests, leading to a writ petition and subsequent stay order by the High Court. The Commissioner proceeded with the adjudication order without supplying the documents, violating the stay order and principles of natural justice. The appellant requested a remand for de novo adjudication after compliance with the High Court's direction and the opportunity to cross-examine relevant witnesses.

The respondent's counsel supported the impugned order, citing that it was passed before the stay order and that the High Court's final order did not direct the supply of documents. The respondent argued that the signing of the order was a formality and pressed for the dismissal of the appeals. However, the Tribunal found that the Commissioner's actions violated the undertaking given to the High Court, as the order was signed during the stay order period. The Tribunal rejected the respondent's argument that the order came into existence before the signing date, emphasizing that an order must be signed to be executable. Due to the violation of the undertaking and failure to supply relied upon documents, the Tribunal concluded that the impugned order could not be sustained. Therefore, the appeals were accepted, and the matters were remanded back to the Commissioner for de novo adjudication, with a directive to supply the documents as per the High Court's order and allow the appellant to cross-examine witnesses.