Failure to provide all documents violates natural justice; Tribunal sets aside order, grants appellant defense opportunity

The Tribunal found that the failure to provide all relied-upon documents to the appellant constituted a gross violation of natural justice. It concluded that the adjudication order, lacking observance of natural justice, could not be sustained. Therefore, the Tribunal set aside the order and directed the adjudicating authority to provide all documents to the appellant. The appellant was granted an opportunity for defense and a personal hearing before a new adjudication order was issued, remanding the case for further proceedings.

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Issues: Violation of principles of natural justice in passing the adjudication order.

Analysis:
The appeals were filed against an Order-In-Original passed by the Principal Commissioner Central GST & Central Excise, confirming the demand of Cenvat Credit and penalties. The case alleged that the appellant availed Cenvat Credit for imported scrap materials but diverted them in the market. The appellant argued that the adjudication violated principles of natural justice as not all relied-upon documents were provided. The appellant cited various judgments supporting their case, emphasizing the importance of natural justice in legal proceedings.

The appellant repeatedly requested the department to supply the relied-upon documents, but not all documents were provided. The Assistant Commissioner representing the revenue claimed that all documents were supplied based on the acknowledgment of the Show Cause Notice. However, upon examination of the correspondence between the appellant and the department, it was evident that not all documents were shared. This lack of disclosure of relied-upon documents constituted a violation of natural justice.

The Tribunal found that the failure to provide all relied-upon documents to the appellant amounted to a gross violation of natural justice. It was established that principles of natural justice must be adhered to before passing an adjudication order. Citing various judgments, the Tribunal concluded that the impugned order, lacking observance of natural justice, could not be sustained. Therefore, the Tribunal set aside the impugned order and directed the adjudicating authority to provide all relied-upon documents to the appellant. The appellant was granted an opportunity for defense and a personal hearing before a denovo adjudication order was passed. The appeals were allowed, remanding the case back to the adjudicating authority for further proceedings.

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