Effective hearing requires supply of relied-upon documents before restricting excise facilities and CENVAT credit use.

A noticee facing withdrawal of excise facilities and restriction on CENVAT credit must be supplied the relied-upon documents and given an effective hearing before the prescribed recommendation process is completed. The notification under the Central Excise Rules and CENVAT Credit Rules required consideration of the person's representation after an opportunity of hearing. Where the action was based on specific documents and statements, withholding those materials despite a request deprived the noticee of a meaningful chance to meet the case. The impugned order was therefore treated as vitiated for breach of prescribed procedure and denial of effective hearing.

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Issues: Whether the impugned order withdrawing excise facilities and restricting utilisation of CENVAT credit was sustainable when the noticee was not supplied the relied upon documents and was not given an effective opportunity of hearing under the governing notification.

Analysis: The notification issued under Rule 12CC of the Central Excise Rules, 2002 and Rule 12AA of the CENVAT Credit Rules, 2004 expressly required that, before recommendations were forwarded, the person concerned had to be given an opportunity of hearing and his representation had to be considered. The record showed that the action was proposed on the basis of specific documents and statements, but those relied upon materials were not furnished despite a request for them. A hearing without access to the very material relied upon could not amount to a meaningful opportunity to meet the case against the noticee.

Conclusion: The impugned order was vitiated for breach of the prescribed procedure and denial of an effective hearing, and was therefore set aside.

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