2018 (3) TMI 1141 - AT - Customs

Principles of natural justice - the order has been passed by the adjudicating authority without hearing the Appellants - Held that - the personal hearing notice was displayed on the Notice board of the New Customs House. However it is not appearing as to whether the Appellant were sent the letters for personal hearing or not - it was incumbent upon the department to send personal hearing notices before displaying it to the notice board of the customs house - matter remanded to the adjudicating authority to pass order on merits after grant of personal hearing and consider the matter afresh - appeal allowed by way of remand.

Summary

Issues:
1. Smuggling of High Speed Diesel
2. Confiscation of seized goods and imposition of penalties
3. Lack of personal hearing before passing the order

Analysis:

Issue 1: Smuggling of High Speed Diesel
The case involved the smuggling of High Speed Diesel (HSD) by a group of individuals led by a person named "Noora" alias "Noora Seth". The officers received intelligence that HSD was being brought from a Gulf Country by Mechanized Vessels and clandestinely sold to different barges in Mumbai. The officers seized a barge named "Noora - II" supplying fuel to fishing trawlers, and it was revealed that a racket was being run by "Noora" and another individual named "Chand". The seized diesel was purchased from foreign vessels and stored in the barges to be sold later to fishing boats. Show cause notices were issued proposing confiscation of seized goods, barges, vessels, and fishing boats, along with penalties on the individuals involved.

Issue 2: Confiscation of seized goods and imposition of penalties
The adjudicating authority confirmed the proposals of the show cause notice, leading to the confiscation of seized goods, barges, vessels, and imposition of penalties on the appellants. The appellants challenged the order on the grounds that the hearing was conducted before the predecessor of the adjudicating authority, and the order was passed without hearing them. The appellate tribunal found that the order was passed without granting the appellants an opportunity of being heard. Therefore, the tribunal set aside the impugned order and remanded the matter back to the adjudicating authority for a fresh consideration after granting a personal hearing to the appellants.

Issue 3: Lack of personal hearing before passing the order
The appellants contended that the order was passed without hearing them as the personal hearing was conducted before the predecessor of the adjudicating authority. The tribunal noted that while a personal hearing notice was displayed on the Notice board of the Customs House, it was not clear whether the appellants were sent letters for personal hearing. The tribunal held that it was essential for the department to send personal hearing notices before displaying them on the notice board. Due to the lack of proper hearing, the tribunal remanded the matter back to the adjudicating authority for a fresh decision after granting the appellants a proper opportunity to be heard.

In conclusion, the appellate tribunal disposed of all appeals by way of remand, emphasizing the importance of granting a fair opportunity for a personal hearing before passing orders in such cases.