2015 (6) TMI 577 - HC - Central Excise

High Court substitutes Tribunal's asset attachment direction, directs expedited appeal disposal, maintains fairness.

IDEAL PAINTS PVT. LTD. Versus COMMISSIONER OF C. EX. (APPEALS), PUNE-III

IDEAL PAINTS PVT. LTD. Versus COMMISSIONER OF C. EX. (APPEALS), PUNE-III - 2015 (317) E.L.T. 401 (Bom.) , 2017 (51) S.T.R. 252 (Bom.) Issues:1. Tribunal's order passed in absence of the appellant and Advocate2. Imposition of condition of payment of entire amount of duty by Tribunal3. Failure to allow cross-examination of key witnesses by Adjudicating Authority4. Dismissal of appeal by Commissioner (Appeals)5. Tribunal's decision to remand the matter to Commissioner (Appeals) for rehearing and redetermination6. Tribunal's imposition of conditional order for stay on coercive measures by Revenue7. Dispute over the fairness and reasonableness of the Tribunal's order8. Appellant's assets being attached by Revenue for recovery purposes9. Substitution of Tribunal's direction by High Court regarding attachment of appellant's properties10. High Court's directive to Commissioner (Appeals) for expeditious disposal of the appealAnalysis:1. The appellant challenged the Tribunal's order passed in their absence, arguing that the Tribunal should not have imposed a condition of payment of the entire duty amount while remanding the matter to the lower Appellate Authority. The appellant contended that the Tribunal's order was unreasonable and arbitrary, not favoring them but imposing burdensome conditions.2. The Tribunal's order stemmed from a show cause notice alleging duty evasion by the appellant, based on statements of key individuals. The appellant's request to cross-examine these individuals was ignored by the Adjudicating Authority, leading to confirmation of the demand by the Additional Commissioner and subsequent dismissal of the appeal by the Commissioner (Appeals).3. The Tribunal, deciding the matter in the absence of the appellant and Advocate, allowed the appeal, emphasizing the appellant's right to natural justice in meeting the contents of the relied-upon statements. The Tribunal remanded the appeal to the Commissioner (Appeals) for rehearing and redetermination.4. Concerns arose regarding the Tribunal's imposition of a conditional order for stay on coercive measures by the Revenue, with the appellant arguing that such conditions rendered the remand proceedings ineffective if not met. The fairness and reasonableness of the Tribunal's order were disputed between the parties.5. The High Court, after perusing the Tribunal's order and considering the appellant's assets being attached by the Revenue for recovery, substituted the Tribunal's direction regarding the attachment. The High Court directed the Commissioner (Appeals) to dispose of the appeal expeditiously within three months, ensuring fairness and justice in the process.6. The High Court clarified that its order did not express any opinion on the merits of the controversy, keeping all contentions open for both sides. The Court emphasized that the appellant was not denied the opportunity to meet the Revenue's case, maintaining openness on this issue.