2008 (3) TMI 149 - AT - Customs

Penalty under Customs Act overturned by CESTAT Mumbai due to violation of natural justice

The Appellate Tribunal CESTAT, Mumbai set aside the penalty imposed on the appellant under the Customs Act, 1962, due to a violation of natural justice ... Applicant herein was not given a fair chance of representing his case - appellant was in detention at Nashik Central jail when adjudicating authority affixed personal hearing notice on the notice board of the Air Cargo complex - adjudicating authority should have granted another chance to the appellant to put forth his case - gross violation of principles of natural justice - Appeal allowed by way of remand Issues: Violation of principles of natural justice in imposition of penalty under Customs Act, 1962.In this judgment by the Appellate Tribunal CESTAT, Mumbai, the issue revolved around the imposition of a penalty of Rs. 1 lakh on the appellant under the provisions of section 112A of the Customs Act, 1962. The appellant, who was in detention at Nashik Central prison, claimed that he was not given a fair chance to represent his case before the adjudicating authority. Despite the appellant's wife informing the authority about his detention and requesting direct communication, the authority proceeded with the case by affixing a notice on the Air Cargo complex's notice board. The tribunal found that the adjudicating authority failed to grant another opportunity to the appellant to present his case, leading to a gross violation of principles of natural justice. The tribunal set aside the impugned order and directed the appellant to file a reply to the show cause notice within four weeks for further proceedings. The tribunal emphasized the importance of granting a personal hearing before reaching a conclusion, thereby allowing the appeal by way of remand.