2013 (1) TMI 255 - AT - Customs

Non issue of notice for personal hearing for personal hearing - jurisdiction of Commissioner of Customs (Imports), Nhava Sheva - Held that - In this case, the principles of natural justice has been violated as the information sought by the appellant under RTI Act shows that there is no record of notice for personal hearing sent to the appellants. Further, agreeing with the argument of assessee that the show cause notice merged with the order of the Commissioner of Customs (Adjudication), Mumbai dated 31/12/2007 and attained finality which has been set aside by this Tribunal on 04/09/2009. Therefore, Commissioner of Customs (Imports), Nhava Sheva has got the jurisdiction to adjudicate the show cause notice. Thus the impugned order set aside and remand the matter back to the Commissioner of Customs (Imports), Nhava Sheva to adjudicate afresh after giving a reasonable opportunity to the appellants to present their case, keeping all the issues open.

Summary

Issues: Jurisdictional conflict between adjudicating authorities, Violation of principles of natural justice, Finality of show cause notice, Remand for fresh adjudication

Jurisdictional Conflict between Adjudicating Authorities:
The appellants contested the jurisdiction of the Commissioner of Customs (Imports), Nhava Sheva to pass the impugned order, arguing that the show cause notice had already been adjudicated by the Commissioner of Customs (Adjudication), Mumbai. The appellants claimed that the impugned show cause notice had attained finality, citing the judgment of the apex court in Shiv Chander Kapoor vs. Amar Bose (1990) 1 SCC 234. They also highlighted the lack of a notice for personal hearing issued by the adjudicating authority. On the contrary, the Additional Commissioner (AR) opposed this contention, stating that a previous Tribunal order had set aside the adjudication order passed by the Commissioner of Customs (Adjudication), Mumbai, granting jurisdiction to the Commissioner of Customs (Imports), Nhava Sheva. After considering both arguments, the Tribunal found that the show cause notice had not merged with the previous order and had not attained finality. Consequently, the Tribunal ruled in favor of the Commissioner of Customs (Imports), Nhava Sheva, allowing them to adjudicate the matter.

Violation of Principles of Natural Justice:
The appellants raised concerns about the violation of principles of natural justice, specifically regarding the lack of a record of notice for personal hearing sent to them. This violation was supported by information obtained under the RTI Act, which revealed the absence of a notice for personal hearing in the proceedings. The Tribunal acknowledged this violation and emphasized the importance of adhering to principles of natural justice. As a result, the Tribunal set aside the impugned order and remanded the matter back to the Commissioner of Customs (Imports), Nhava Sheva for fresh adjudication, ensuring that the appellants are given a reasonable opportunity to present their case.

Finality of Show Cause Notice and Remand for Fresh Adjudication:
The Tribunal concluded that the show cause notice had not attained finality as claimed by the appellants due to the previous Tribunal order setting aside the adjudication order passed by the Commissioner of Customs (Adjudication), Mumbai. Therefore, the impugned order was set aside, and the matter was remanded back to the Commissioner of Customs (Imports), Nhava Sheva for fresh adjudication. The Tribunal directed that all issues remain open for consideration during the new adjudication process, emphasizing the importance of granting the appellants a fair opportunity to present their case. Ultimately, the appeals and stay applications were disposed of in light of the remand for fresh adjudication, ensuring procedural fairness and adherence to principles of natural justice.