Notification compliance and natural justice: remand ordered where proof of credit reversal under the amnesty scheme needed verification.

Compliance with Notification No. 203/92-Cus. depended on verification of whether Modvat credit had been reversed with interest under the Board's amnesty scheme within the stipulated time. The record indicated that the appellant had reversed credit, asserted regularisation under the scheme, and sought time to produce the Central Excise certificate, with supporting delivery proof. In these circumstances, the adjudication could not properly proceed without allowing a reasonable opportunity to place evidence of compliance. The impugned order was set aside and the matter remanded to the Commissioner for fresh adjudication after giving such opportunity.

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Issues: Whether the appellant had prima facie complied with the conditions of Notification No. 203/92-Cus. by reversing the Modvat credit with interest under the Board's amnesty scheme, and whether the adjudication order imposing penalty could stand without granting further opportunity to produce proof of such compliance.

Analysis: The record showed reversal of Modvat credit and correspondence asserting compliance with the Board's scheme permitting regularisation of the notification condition on reversal of credit with interest within the stipulated time. The appellant had also sought time to produce the certificate from the Central Excise authorities, and the materials indicated that the request was supported by delivery proof. In these circumstances, the matter required verification of compliance with the amnesty scheme, and the appellant ought to have been given a reasonable opportunity to place the necessary evidence before the adjudicating authority.

Conclusion: The appeal was allowed, the impugned order was set aside, and the matter was remanded to the Commissioner to afford reasonable opportunity and thereafter adjudicate the notice afresh.

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