Fair hearing under customs law requires genuine opportunity before adjudication is sustained; mechanical adjournment counting may justify remand.
Section 122A of the Customs Act requires a genuine opportunity of hearing, and the adjournment limit cannot be applied mechanically where the record does not show that fair hearing was effectively provided. On the facts noted, the majority found that the hearing notice with alternative dates did not amount to three adjournments, so the adjudication was passed without proper observance of natural justice and could not stand. The adjudication order was therefore set aside and the matter remanded to the original authority for fresh decision. A dissenting view considered that three adjournments had already been granted and no further interference was warranted.
Issues: Whether the adjudication order was vitiated for denial of a fair hearing under Section 122A of the Customs Act, 1962 and whether the matter required remand for fresh adjudication.
Analysis: The majority held that the hearing notice granting alternative dates could not be treated as three adjournments. Section 122A requires an opportunity of being heard, while the proviso limits adjournments to not more than three times. On the facts recorded, the applicant had not been afforded a proper hearing in accordance with natural justice. Since the adjudication proceeded on an erroneous understanding of the adjournment record, the matter could not be sustained at that stage.
Conclusion: The adjudication order was set aside and the matter was remanded to the original authority for fresh decision after observing principles of natural justice.
Dissenting Opinion: One Member held that three adjournments had already been granted and that no further opportunity was required, so the adjudication need not be interfered with on the ground of natural justice.
Final Conclusion: The appeal succeeded to the extent that the impugned adjudication was annulled and restored for fresh consideration by the original authority.
Ratio Decidendi: Where the record does not show that the statutory hearing opportunity was effectively exhausted in the manner contemplated by Section 122A of the Customs Act, 1962, an adjudication passed without a fair hearing is liable to be set aside and remanded.
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AI Drafter ✕
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