2015 (1) TMI 66 - AT - Customs

Stay application - appeal dismissed for non compliance with pre deposit order - Held that - At the time of consideration of the stay application, no opportunity of hearing was given to the appellant to defend their stay application but they were directed to make a pre-deposit of 50% of penalty for considering their appeal. In these circumstances, I hold that the learned Commissioner (Appeals) has violated the principles of natural justice therefore, the impugned order has no merit. Accordingly, the impugned order is set aside and the matter is remanded back to the Commissioner (Appeals) to first to decide the application for stay after giving a reasonable opportunity of hearing to the appellant to present their case and thereafter to decide the appeal on merits. - Decided in favour of assessee.

Summary

Issues:
Violation of natural justice in directing pre-deposit for stay application.

Analysis:
The appellant appealed against an order imposing a penalty of &8377; 5,00,000, challenging it before the Commissioner (Appeals) and filing a stay application. The Commissioner (Appeals) passed an ex parte order directing the appellant to make a pre-deposit of 50% of the penalty without allowing an opportunity to be heard. The appellant argued that this violated natural justice. The Tribunal found that the lack of opportunity for the appellant to defend their stay application was a violation of natural justice. Consequently, the Tribunal set aside the impugned order and remanded the matter back to the Commissioner (Appeals) to decide the application for stay after providing a reasonable opportunity of hearing to the appellant.

The Tribunal noted that the appellant had pleaded financial hardship before the Commissioner (Appeals) during the final hearing, but this was not considered. It was held that the order directing the pre-deposit of 50% of the penalty was a gross violation of natural justice. The Tribunal emphasized the importance of providing a fair hearing before making such decisions. The impugned order was deemed to have no merit due to the violation of principles of natural justice. Consequently, the impugned order was set aside, and the matter was remanded back to the Commissioner (Appeals) for a proper consideration of the stay application and subsequent appeal on merits.

In conclusion, the Tribunal disposed of the appeal and the stay application by setting aside the impugned order and remanding the matter back to the Commissioner (Appeals) for a fair and just consideration. The importance of upholding the principles of natural justice in such proceedings was highlighted, emphasizing the need for a reasonable opportunity of hearing for all parties involved.