2016 (12) TMI 225 - AT - Central Excise

Rejection of request of inspection of electronic devices - application for early hearing - Held that - The appellant has sought examination / comparison of data supplied which is contained in ACER brand laptop and relied upon the show cause notice in the presence of computer expert. The examination of laptop is vital for adjudication of the case. Therefore, the appellant is having a legal right for examination of laptop in question. In that circumstances, we direct the adjudicating authority to allow the appellant to examine the ACER brand laptop and all the record pertaining to that electronic devices be provided to the appellant for consideration - principles of natural justice to be followed - appeal allowed by way of remand.

Summary

Issues:
- Request for inspection of electronic devices turned down by adjudicating authority
- Application for early hearing of the appeal due to adverse impact on appellant's interest
- Contradiction in data retrieved from ACER laptop leading to request for examination
- Adjudicating authority's refusal to allow examination of laptop
- Appeal challenging the refusal of inspection request

Issue 1: Request for inspection of electronic devices turned down by adjudicating authority

The appellant appealed against the impugned order where the adjudicating authority rejected the request for inspection of electronic devices. The appellant emphasized the importance of examining the ACER brand laptop to verify the data relied upon by the department. The appellant sought permission for examination and comparison of the data contained in the laptop to provide a comprehensive reply to the show cause notice. However, the adjudicating authority denied the request, citing that there was no contradiction in the data retrieved from the laptop as mentioned in the appellant's letter. This denial led to the appellant approaching the appellate tribunal.

Issue 2: Application for early hearing of the appeal due to adverse impact on appellant's interest

The appellant also filed an application for early hearing of the appeal, expressing concerns that the adjudicating authority had fixed the matter for early hearing after rejecting the request for inspection of electronic devices. The appellant argued that the early hearing was necessary to prevent adverse effects on their interests. The tribunal, considering the urgency of the matter, granted the application for early hearing and took up the appeal promptly to address the appellant's concerns.

Issue 3: Contradiction in data retrieved from ACER laptop leading to request for examination

The appellant highlighted a contradiction in the data retrieved from the ACER laptop, specifically regarding the period mentioned in different documents. The appellant's request for examination of the laptop was based on the need to verify the factual position and authenticity of the data relied upon by the department. The tribunal acknowledged the importance of examining the laptop for the adjudication of the case and upheld the appellant's legal right to inspect the electronic device. Consequently, the tribunal directed the adjudicating authority to allow the appellant to examine the ACER laptop and all related records for a thorough consideration.

Issue 4: Adjudicating authority's refusal to allow examination of laptop

The adjudicating authority refused the appellant's request for inspection of the ACER laptop, asserting that there was no contradiction in the data as claimed by the appellant. However, the appellate tribunal found merit in the appellant's argument regarding the necessity of examining the laptop for a fair adjudication of the case. The tribunal emphasized the appellant's legal right to inspect the electronic device and directed the adjudicating authority to provide access to the laptop and related records for examination. The tribunal instructed the adjudicating authority to pass an appropriate order following the principles of natural justice after the examination.

In conclusion, the appellate tribunal allowed the appeal in favor of the appellant, granting the request for inspection of the ACER laptop and directing the adjudicating authority to facilitate the examination process. The tribunal's decision upheld the appellant's right to verify the data relied upon in the show cause notice, ensuring a fair and thorough consideration of the case.