2017 (4) TMI 91 - HC - Central Excise

Natural justice - petitioner s case is that the Tribunal erred in law in disposing of the statutory appeal since no effective hearing of appeal had taken place before the Tribunal - Held that - principle of natural justice have not been complied with inasmuch as evidence on record indicates that the Tribunal had fixed the stay petition for hearing from day-to-day and instead of passing any order on the stay application proceeded to dispose of the appeal on merit without affording the appellant proper opportunity to address the Tribunal on merit - appeal allowed - decided in favor of appellant.

Summary

Issues:
1. Compliance with principles of natural justice in the disposal of a statutory appeal by the Tribunal without proper opportunity for the appellant to address on merits.
2. Validity of the impugned order dated 23-12-2015 under Annexure 2.
3. Requirement of pre-deposit for entertaining the appeal.

Analysis:

Issue 1:
The appellant, aggrieved by an order dated 5-5-2014, filed an appeal before the Tribunal, along with a Stay Petition. The appellant contended that the Tribunal erred in law by disposing of the appeal and the stay petition without proper hearing. The Tribunal, without affording the appellant a fair opportunity to address on merits, proceeded to dispose of the appeal. The Senior Standing Counsel for the Central Excise Department acknowledged that the Tribunal did not record consent from the parties for disposal of the appeal on merits along with the stay application. The Court, without delving into the merits of the case, held that the principle of natural justice was not complied with.

Issue 2:
Considering the lack of compliance with natural justice principles, the Court set aside the impugned order dated 23-12-2015 under Annexure 2. The Court directed the petitioner to deposit a sum of ?2.00 crores within two weeks as a pre-deposit for entertaining the appeal. The appeal was to be heard and disposed of expeditiously on its own merits. The Court emphasized that the Tribunal should proceed without being influenced by the earlier order or the observations made in the present order. The appellant was instructed to act in accordance with the deposit order.

Issue 3:
In addition to setting aside the impugned order and directing the pre-deposit, the Court disposed of the OTAPL with the mentioned observations and directions. A free copy of the order was to be provided to the Central Excise Department's counsel, and an urgent certified copy would be granted upon a proper application.

This judgment primarily focused on the failure to adhere to principles of natural justice in disposing of the appeal, leading to the setting aside of the impugned order and the requirement of a pre-deposit for the appeal to be entertained and decided on its merits.