Natural justice in customs adjudication requires a meaningful hearing where the noticee cannot participate; ex parte order set aside and remanded.

A penalty order under section 112A of the Customs Act was held vulnerable where the adjudicating authority proceeded despite knowing that the noticee was detained and unable to respond or attend the hearing. Service by affixation alone, without any effective attempt to communicate directly, deprived the appellant of a meaningful chance to file a reply and be heard. That failure amounted to a breach of natural justice, and the impugned order was set aside with remand for fresh adjudication after affording personal hearing.

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Issues: Whether the penalty order passed under section 112A of the Customs Act, 1962 was liable to be set aside for violation of natural justice and the matter remanded for fresh adjudication.

Analysis: The appellant was shown to be in detention and unable to respond to the show cause notice or appear for the first hearing. The record also indicated that the adjudicating authority was informed of this circumstance, yet no effective attempt was made to communicate directly with the appellant and the matter proceeded on the basis of affixation of the hearing notice. In these circumstances, the appellant was denied a fair opportunity to place his case before the adjudicating authority, amounting to a breach of the principles of natural justice.

Conclusion: The impugned order was set aside and the matter was remanded for fresh adjudication after granting the appellant an opportunity to file a reply and be personally heard.

Ratio Decidendi: An adjudication order passed without affording a meaningful opportunity of hearing to a party known to be unable to participate, despite notice of such inability, is vitiated by violation of the principles of natural justice and is liable to be set aside with remand.

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