2019 (1) TMI 1301 - AT - Central Excise

Clandestine removal - case of appellant is that the order was passed by the learned Commissioner ex parte and the appellant have not filed detailed reply to the show-cause notice - principles of natural justice - Held that - The learned Commissioner has afforded sufficient opportunities to the appellant to present their case, but the appellant did not avail such opportunities on the ground that the matter was pending before the Hon ble Bombay High Court - However, in the interest of justice, the appellant should be allowed one more last opportunity to present their case before the Commissioner - appeal allowed by way of remand.

Summary

Issues: Appeal against Order-in-Original for removal of excisable goods without duty payment, ex parte order by Commissioner, request for remand to adjudicating authority, pending matter before High Court, opportunity for appellant to present case.

In this case, the appellant filed an appeal against Order-in-Original No. 13/BR/Th-I/2010, which was passed by the Commissioner of Central Excise, Thane-I, alleging the removal of excisable goods without payment of duty. The investigation revealed the appellant's involvement in this activity, leading to a demand notice for duty recovery amounting to &8377; 28,62,449/- for the period from 1995 to November 1998, along with interest and penalty. The demand was confirmed with interest and penalty after adjudication. Subsequently, the appellant appealed before the Tribunal, which remanded the matter to the adjudicating authority for reconsideration. Despite the pending matter before the High Court, the Commissioner proceeded with the adjudication, resulting in the present appeal.

The appellant's consultant requested a remand to the adjudicating authority, highlighting that the order was passed ex parte as the detailed reply to the show-cause notice was not filed. The consultant sought a last opportunity to file a reply within four weeks and participate in the adjudication proceedings. The Revenue's representative did not object to this request. The Tribunal noted that the appellant did not avail previous opportunities to present their case due to the matter pending before the High Court. However, in the interest of justice, the Tribunal granted one final opportunity to the appellant to present their case before the Commissioner. The appellant committed to filing a reply to the show-cause notice and participating in the proceedings without unnecessary adjournments.

Consequently, the Tribunal remanded the appeal to the adjudicating authority for a fresh hearing and directed the authority to pass an appropriate order after providing a reasonable opportunity to the appellant. All issues were kept open, and the appeal was allowed by way of remand, ensuring the appellant's right to present their case effectively.