Natural justice breach in customs adjudication led to setting aside the order and remand for fresh hearing.

CESTAT, Mumbai held that an adjudication order could not stand where the assessee had sought deferment of the show cause notice because the duty dispute on shrinkage of grey fabrics was pending before the Supreme Court, and that request was not effectively considered. The record showed no proper opportunity of hearing before the order was passed, amounting to breach of natural justice. The impugned order was therefore set aside and the matter remanded to the Commissioner for fresh decision after granting the assessee a reasonable opportunity to present its case.

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Issues: Whether the adjudication order was liable to be set aside for breach of natural justice and the matter remanded for fresh decision after hearing the assessee.

Analysis: The assessee had informed the jurisdictional authority that the dispute regarding duty on shrinkage of grey fabrics was pending before the Supreme Court and had requested that the show cause notice be kept in abeyance. The record did not show that this request was effectively considered or granted. In these circumstances, the order was treated as having been passed without proper hearing, thereby offending the requirement of a reasonable opportunity to present the case.

Conclusion: The impugned order was set aside and the matter was remanded to the Commissioner for fresh decision after granting the assessee a reasonable opportunity of hearing.

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