Natural justice breach permits remand for fresh adjudication when ex parte orders are passed without proper notice.

Where an ex parte adjudication was passed without proper service of notice, the order was vitiated for breach of natural justice and could not stand as a valid merits determination. In that situation, the Commissioner (Appeals) was entitled to remit the matter for fresh adjudication after giving the assessee an opportunity of hearing. The remand power was supported by section 85(5) of the Finance Act and section 35A(3) of the Central Excise Act, which permit sending the matter back when the original proceedings are defective for want of proper notice or hearing.

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Issues: Whether the Commissioner (Appeals) had power to remand the matter to the adjudicating authority after finding that the original order was passed without proper notice and in violation of natural justice.

Analysis: The order-in-original was passed ex parte and the record showed that proper notice had not been served on the assessee. Once a violation of natural justice was established, the adjudication order could not be sustained as a valid determination on merits. In such a situation, the appellate authority was justified in remitting the matter for fresh adjudication after granting an opportunity of hearing. The provisions of section 85(5) of the Finance Act and section 35A(3) of the Central Excise Act supported the power to send the matter back where the original proceedings were vitiated for want of proper opportunity.

Conclusion: The remand order was upheld and the appeal was dismissed.

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