1991 (9) TMI 92 - HC - Customs

Summary

Issues:
1. Writ of certiorarified mandamus to quash orders of the second respondent.
2. Denial of opportunity to defend against levy proceedings.
3. Violation of principles of natural justice in remanded proceedings.

Analysis:

The judgment pertains to two writ petitions filed seeking relief against the orders of the second respondent. The first issue involves challenging the order of the second respondent dated 18-5-1983, while the second issue pertains to the denial of opportunity to defend against levy proceedings. The third issue revolves around the violation of principles of natural justice in the remanded proceedings.

The Assistant Collector had initially confirmed a demand against the petitioners, which was later set aside by the Appellate Collector, who remanded the matter back to the Assistant Collector for fresh consideration. However, the Assistant Collector, in his proceedings dated 23-9-1980, once again confirmed the demand, leading to the filing of the writ petitions.

The petitioners contended that the Assistant Collector failed to provide a personal hearing or a show cause notice, leading to a denial of an effective opportunity to defend against the levy proceedings. The Senior Central Government Standing Counsel acknowledged the lack of indication of any opportunity being provided to the petitioners based on the order dated 23-9-1980.

The court held that the denial of the right to participate in the remanded proceedings constituted a violation of the principles of natural justice, especially when monetary liability was involved. Without delving into the merits of the claims, the court quashed the impugned proceedings on the grounds of denial of opportunity. The Assistant Collector was directed to restore the proceedings, provide a fresh opportunity to the petitioners, and pass orders in accordance with the law.

Ultimately, the court allowed the writ petitions, ordering the quashing of the impugned proceedings and directing the restoration of the proceedings to provide the petitioners with a fair opportunity to defend themselves.