Natural justice breach permits de novo adjudication, but remand power cannot be exercised without statutory authority.

Denial of an opportunity of hearing vitiates the adjudication for breach of natural justice, and the defect must be cured by fresh decision after hearing the affected party. The appellate authority noted the violation but recognised that Section 128A of the Customs Act, 1962 does not itself confer an unrestricted power to remand. In these circumstances, the proper course was to set aside the impugned order and restore the matter for de novo adjudication before the adjudicating authority. The matter was remanded accordingly for fresh hearing and decision.

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Issues: Whether the order of the Commissioner (Appeals) could be set aside and the matter remanded for de novo adjudication in view of the violation of principles of natural justice and the restriction on remand under Section 128A of the Customs Act, 1962.

Analysis: The adjudicating authority had not afforded the appellants an opportunity of hearing before passing the order, and this defect was accepted in the impugned order. The Commissioner (Appeals) had noted the breach of natural justice but also relied upon Section 128A of the Customs Act, 1962, which does not confer power to remand. In these circumstances, the proper course was to set aside the impugned order and restore the matter for fresh adjudication after hearing the appellants.

Conclusion: The issue was decided in favour of the appellants, and the matter was remanded to the adjudicating authority for de novo adjudication after granting an opportunity of hearing.

Ratio Decidendi: Where an adjudication is vitiated by denial of hearing, the matter may be remanded for fresh decision to cure the breach of natural justice, and the appellate authority cannot exercise a remand power absent statutory authorization.

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