TMI Blog2016 (9) TMI 984X X X X Extracts X X X X X X X X Extracts X X X X ..... herein to be satisfied. As the impugned order stands, the Commissioner has not specified the materials on the basis of which he has formed the opinion that the petitioner has availed of duty credit or utilised cenvat credit beyond the normal limits having regards to the nature and quantity of finished goods manufactured and cleared. The Commissioner has not discussed the nature of finished goods manufactured and cleared by the petitioner. The Commissioner has not discussed of the quantum of the duty credit or utilised cenvat credit by the manufacturer. The foundational basis for the assumption of jurisdiction by the Commissioner under Section 14AA of the said Act has not been stated in the impugned order. Therefore, the impugned order is un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... upon a decision of the Supreme Court reported in (2008) 300 ITR 403 (SC) [Sahara India (firm) vs. Commissioner of Income-Tax Another] and submitted that, since under Section 14AA of the said Act entails civil consequences, the authorities are obliged to grant an opportunity of hearing to the petitioner. In the present case, the petitioner was not afforded any opportunity of hearing. Moreover, the impugned order is unreasoned. The impugned order does not specify any ground as to the formation of the opinion of the Commissioner that the petitioner has availed of duty credit or utilised cenvat credit beyond the normal limits. Learned Senior Advocate on behalf of the department has submitted that the department may be permitted to hear the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have effect notwithstanding that the accounts of the said manufacturer aforesaid have been audited under any other law for the time being in force or otherwise. [***] (5) The manufacturer shall be given an opportunity of being heard in respect of any material gathered on the basis of the audit under sub-section (1) and proposed to be utilised in any proceeding under this Act or rules made thereunder. 5 [Explanation 1]. For the purpose of this section, cost accountant shall have the meaning assigned to it in clause (b) of sub-section (1) of section 2 of the cost and Works Accountants Act, 1959 (23 of 1959).] 6 [Explanation 2. For the purposes of this section, chartered accountant shall have the meaning assigne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e does not expressly provide for one, has held that, where a decision by a statutory authority entails a civil consequences and where the section does not expressly debar the application of the principles of natural justice, then a right of hearing has to be read into such provision of the statute. Applying the ratio of Sahara India (Supra) and more particularly when Section 14AA of the said Act entails civil consequences and where such section does not specifically debar the application of the principles of natural justice, the authorities are, therefore, required to afford a reasonable opportunity of hearing to an assessee before a decision is arrived at under such section. In the present case, it does not appear from the materials ..... X X X X Extracts X X X X X X X X Extracts X X X X
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