Natural justice breach in adjudication: non-service of show-cause notice and documents led to remand for fresh hearing.

An adjudication order cannot be sustained where the show-cause notice and relied upon documents were not served before decision, because the absence of basic disclosure denies the assessee a reasonable opportunity of defence and breaches natural justice. The proper course in such a case is to set aside the order and remit the matter for fresh adjudication after supplying the notice and supporting documents and granting a reasonable hearing. The CESTAT, Mumbai, accordingly treated non-service of the notice and materials as a fatal procedural defect and directed de novo proceedings before the adjudicating authority.

---

---

Issues: Whether the adjudication order could be sustained when the show-cause notice and relied upon documents were not served, and whether the matter required remand for fresh adjudication after complying with natural justice.

Analysis: The appellant sought supply of the show-cause notice and relied upon documents and also requested deferment of personal hearing, but the department did not furnish the notice or documents before proceeding further. The absence of service of the notice and supporting material deprived the appellant of a reasonable opportunity of defence. An adjudication made without such basic procedural fairness cannot be sustained. In these circumstances, the appropriate course was to set aside the order and remit the matter for a fresh decision after compliance with the principles of natural justice.

Conclusion: The adjudication order was unsustainable for breach of natural justice and the matter was remanded to the adjudicating authority for de novo adjudication after supplying the show-cause notice and relied upon documents and granting reasonable opportunity of hearing.

---