2022 (8) TMI 6 - AT - Central Excise

Violation of principles of natural justice - Documents seized in the process of search and seizure and which were not relied upon, were not returned - the cross-examination has not been allowed on the statements of persons, which were relied upon - HELD THAT - There was indeed violation of principles of natural justice in the matter. The matter is remanded back to the original authority with following directions (i) All documents which were seized from the appellant and which were not relied upon must be returned to it; (ii) If any statement made by any person before a Central Excise officer was relied upon in the show cause notice the procedure required under Section 9D of the Central Excise Act must be followed. If the appellant seeks the cross-examination of the persons who made such statements the same must also be allowed. The assessee should be allowed cross-examination of any expert whose opinion was relied upon in the show cause notice. Appeal allowed by way of remand.

Summary

Issues: Violation of principles of natural justice in the matter

Analysis:
The appellant submitted that numerous documents seized by the Department were not returned, hindering their ability to present a suitable defense against the show cause notice. Furthermore, the appellant highlighted that statements of individuals were relied upon without following the necessary procedures, such as examination under Section 9D or allowing cross-examination. The appellant also raised concerns regarding the reliance on a handwriting expert's report without granting the opportunity for cross-examination. On the contrary, the Departmental Representative contended that the impugned order was fair and warranted no interference.

Upon considering both arguments, the Tribunal acknowledged the violation of principles of natural justice in the case. Consequently, the matter was remanded back to the original authority with specific directions. Firstly, all documents seized but not relied upon must be returned to the appellant. Secondly, if any statements or expert opinions were used in the show cause notice, the procedural requirements under Section 9D of the Central Excise Act must be adhered to. This includes allowing cross-examination of individuals whose statements were relied upon, as well as any experts whose opinions were considered. The Tribunal refrained from making any comments on the merits of the appeal, leaving all issues open for further consideration.

In conclusion, the Tribunal's decision to remand the matter back to the original authority with clear directions aimed to rectify the violations of natural justice observed in the proceedings. By ensuring the return of relevant documents and the proper procedural steps for statements and expert opinions, the Tribunal sought to uphold the principles of fairness and due process in the adjudication of the case.