2009 (5) TMI 647 - AT - Customs

Tribunal invalidates order due to lack of communication and disproportionate penalties.

SURAJ DIAMONDS & JEWELLERY LTD. Versus CC. (AIRPORT & ADMN.), KOLKATA

The Tribunal found that the lack of communication of charges, ignored submissions, and failure to specify the RBI regulations violated by the appellants ... Natural justice - Violation of Issues: Lack of communication of charges, Ignored submissions, Violation of RBI regulations, Disproportionate penalty and fineThe judgment addresses the issue of lack of communication of charges against the appellants before passing the impugned order. The advocate for the appellants argued that the adjudicating Commissioner ignored the submissions made on behalf of the appellants regarding similar imports of gold allowed at another port. It was also highlighted that the Board's Circular from 2004, permitting such imports, was not considered. The Tribunal found that no show-cause notice was issued to the appellants, and the adjudicating Commissioner failed to specify the RBI Regulations violated by the appellants, leading to confusion. The penalty and fine imposed were deemed disproportionately low if any regulations were indeed violated. The Department representative later admitted that the relevant RBI instruction dated 9-7-04, allegedly violated by the appellants, was not provided to them before the impugned order.Another issue raised was the violation of RBI regulations by the appellants. The Department claimed that the RBI instruction dated 9-7-04 had been breached. However, this instruction was neither disclosed to the appellants before the impugned order nor mentioned in the order itself. The Tribunal concluded that without the specific charge communicated to the appellants and the relevant RBI regulation cited in the impugned order, the order could not be upheld. Consequently, the judgment set aside the impugned order and remanded the case to the adjudicating Commissioner. The Commissioner was instructed to communicate the exact charges to the appellants, including the relevant RBI regulations, and provide an opportunity for the appellants to defend themselves adequately.In summary, the judgment highlighted the importance of communicating charges to the appellants, considering their submissions, and specifying the regulations allegedly violated. It emphasized the need for transparency and fairness in adjudication, ensuring that all relevant information is provided to the concerned parties. The decision to remand the case for re-adjudication aimed to uphold the principles of natural justice and due process, allowing the appellants to present their defense effectively.