2019 (2) TMI 607 - AT - Customs

Appeals allowed due to lack of notice violating Customs Act - Emphasis on natural justice

The appeals were filed against a common impugned order passed by the Commissioner(Appeals), remanding the original order and upholding some appeals while ... Principles of natural justice - non-speaking order - non-application of mind - Held that:- The Commissioner(Appeals) has observed in his order that three opportunities of personal hearing were granted to the appellants but none of the appellants or their counsel appeared and one of the letter addressed to Sh. Samjad Konari was returned back by observing that they are not staying in the said address - further, the appellant was not served the notice of hearing by the Department and in reply to the RTI application, the Department has stated that personal hearing was fixed on 19/04/2018 or 20/04/2018 and the intimation was given on 11/04/2018 which was never received by the appellants. The entire impugned order has been passed in clear violation of the principles of natural justice and no hearing was given to the appellant or his counsel and the impugned order has been passed ex parte - this case needs to be remanded to the Commissioner(Appeals) with a direction to pass de novo order after complying with the principles of natural justice - appeal allowed by way of remand. Issues: Appeal against impugned order, principles of natural justice, violation of Customs ActAppeal against Impugned Order:The judgment involves 5 appeals filed against a common impugned order passed by the Commissioner(Appeals). The order remands the original order passed by the Joint Commissioner of Customs ACC, Bangalore and rejects certain appeals while upholding others. The appellants challenged the order, arguing that it was unsustainable and violated principles of natural justice. The Commissioner(Appeals) disposed of all appeals in a single order due to identical facts.Principles of Natural Justice:The appellants contended that the impugned order was passed without proper appreciation of facts and law, violating principles of natural justice. They argued that the order did not specify the dates of personal hearings, indicating a lack of opportunity to defend their case. The appellants invoked the RTI Act to request details about communication and hearing notices, revealing discrepancies in the dates provided by the Department. The judgment found that the impugned order indeed violated natural justice principles by not granting a fair hearing to the appellants and their counsel. It was noted that the Commissioner(Appeals) lacked the power to remand under Section 128A of the Customs Act.Violation of Customs Act:The judgment highlighted the defense put forth by the learned AR in support of the impugned order. After considering submissions from both sides and reviewing the material on record, the judgment concluded that the impugned order was passed ex parte, without proper notice to the appellants or their counsel. It was found that the appellants were not served the notice of hearing, leading to a violation of natural justice principles. Consequently, the judgment allowed all appeals by remanding the case to the Commissioner(Appeals) for fresh orders, emphasizing the need to comply with natural justice principles and afford a fair opportunity for hearing and evidence presentation.This detailed analysis of the judgment showcases the issues involved, the arguments presented by both sides, and the ultimate decision to remand the case for a fair reconsideration in light of the principles of natural justice.