2017 (9) TMI 1548 - AT - Central Excise

Clandestine removal - principles of Natural Justice - appellant submitted that they had supplied the details of Job-workers and payment particulars. But no investigation was conducted - Held that - the Adjudicating Authority is bound to follow the observation of the Tribunal for the purpose of passing the denovo adjudication - In the present case, the Adjudicating Authority passed the order in total disregard of the remand order of the Tribunal which is a gross violation of principles of judicial discipline. Therefore, the Adjudication order passed by the Commissioner (Appeals) cannot be sustained - matter is remanded to the Adjudicating Authority afresh as per the directions of the earlier remand order of the Tribunal - appeal allowed by way of remand.

Summary

Issues:
- Alleged clandestine removal of finished goods without payment of duty
- Denovo Adjudication order passed by the Commissioner of Central Excise, Siliguri
- Violation of principles of judicial discipline in passing the Adjudication order
- Directions of the Tribunal not followed by the Adjudicating Authority
- Remand of the matter to the Adjudicating Authority

Analysis:
The case involves the appellants, engaged in manufacturing plywood and other goods, facing allegations of clearing finished goods clandestinely without paying duty. Central Excise Officers recovered incriminating documents and recorded statements of partners of the appellant firm. A Show Cause Notice was issued, leading to the confirmation of duty demand, interest, and penalty by the Commissioner of Central Excise, Siliguri. The Denovo Adjudication order was passed by the Commissioner, which was challenged in the present appeal.

Upon hearing both sides, it was observed that the Denovo Adjudication order was based on faulty decision-making processes and lacked evidence. The Adjudicating Authority failed to follow the Tribunal's directions, leading to deficiencies in the investigation process. The Adjudicating Authority's disregard of the Tribunal's remand order was deemed a gross violation of judicial discipline, rendering the Adjudication order unsustainable.

The Tribunal noted that the Adjudicating Authority must adhere to the Tribunal's observations for passing Denovo Adjudication. As the Adjudicating Authority did not comply with the remand order, the impugned order was set aside, and the matter was remanded to the Adjudicating Authority for a fresh decision. Emphasis was placed on expeditious resolution, ensuring the principles of natural justice are observed, and granting the appellants a reasonable opportunity to present their case.

Ultimately, the appeal was allowed by way of remand, emphasizing the importance of following judicial discipline and Tribunal directions in adjudicating matters of duty demand and penalty related to alleged clandestine removal of goods.