2016 (3) TMI 946 - AT - Central Excise

Tribunal overturns order in motor vehicle parts case due to lack of evidence & fair hearing

M/s Sumax Automotive Plastics Pvt. Ltd., Kulbir Singh Sahni, Inder Singh Sahni, Sunil Malhotra And Subhash H Vora Versus Commissioner of Central Excise, Mumbai-II

The Tribunal set aside the impugned order in a case involving import and re-packaging of motor vehicle parts, where duty and penalty were demanded without ... Demand raised on presumption - Held that:- Tribunal in its remand order had directed the Revenue to provide copies of all the relied upon documents and opportunities to be heard to the appellant. It is seen that the Revenue has failed to do both. In these circumstances, we are left with no option but to set aside the impugned order and remand the matter for fresh adjudication after providing the copies of relied upon documents and opportunities to be heard. Issues:Adjudication without personal hearing and relevant documents, demand of duty on entire turnover without analysis, reliance on presumption, failure to provide relied upon documents and opportunities for hearing.Analysis:The appellants, involved in import and re-packaging of motor vehicle parts, faced a show-cause notice demanding duty and penalty. The matter was adjudicated ex parte without providing relied upon documents. The appellants argued that essential documents were not supplied, hindering their defense preparation. They pointed out discrepancies in the demand calculation and highlighted the lack of evidence supporting the demand. The Tribunal had earlier directed the Commissioner to provide documents and a hearing, but the Revenue failed to comply.The learned AR argued that reasonable access was granted, citing instances of document provision and personal hearings. However, the appellants contended that despite their efforts, the relied upon documents were not supplied, leading to an unfair adjudication process. The Tribunal noted the failure of the Revenue to fulfill the directions for document provision and hearing opportunities. Consequently, the impugned order was set aside, and the matter was remanded for fresh adjudication following the principles of natural justice.In conclusion, the judgment highlighted the importance of providing relied upon documents and opportunities for a fair hearing in adjudication processes. The failure to adhere to these principles necessitated setting aside the order for a fresh adjudication. The case underscores the significance of upholding natural justice principles in legal proceedings to ensure a fair and just outcome.