2022 (9) TMI 66 - AT - Customs

Appeal Allowed: Penalties Set Aside for Customs Act Violation. Remanded for Fair Hearing.

The Tribunal allowed the appeal, setting aside the penalties imposed on the Appellants under the Customs Act. It found a violation of natural justice as ... Levy of penalties u/s 112(a) of the Customs Act, 1962 and u/s 114AA of the Customs Act, 1962 - appellant’s alleged involvement of forged /fake VKGUY /DEPPB license and imports there under - Violation of principles of natural justice - HELD THAT:- It is the basic principle of the Natural justice that no one can be condemned unheard. Natural Justice is an un codified law purely based on principle of substantial justice and judicial spirit. Principles of Natural Justice are the cardinal principles, which must be followed in every judicial and quasi judicial proceeding. Authorities should exercise their powers fairly reasonably & impartially in a just manner. They should not decide a matter on the back of the party. There is clear violation of natural justice. Therefore, ex-parte order passed by the Adjudicating Authority will not sustain - matter remanded to the Adjudicating Authority for passing a fresh order after granting sufficient personal hearing - appeal allowed by way of remand. Issues: Violation of natural justice in adjudication process.Detailed Analysis:- The appeal was against penalties imposed on the Appellants under Section 112(a) and Section 114AA of the Customs Act, 1962 for their alleged involvement in using forged/fake licenses for imports.- The Appellant's counsel argued that the principles of natural justice were not followed as the department sent hearing memos to the jail instead of the known residential address, denying the Appellant a fair chance to defend themselves.- The Appellant also requested adjournment of personal hearings, which was not considered, and the request for cross-examination was also ignored by the Commissioner.- The Superintendent representing the Revenue reiterated the findings of the impugned order.- The Tribunal, after hearing both sides, found that the appeals could be disposed of solely on the ground of natural justice without delving into the merits of the case.- It was noted that the Commissioner decided the matter ex-parte without considering the Appellant's requests, which violated the principles of natural justice.- The Tribunal emphasized that natural justice principles, based on substantial justice and judicial spirit, must be adhered to in every judicial and quasi-judicial proceeding.- Concluding that there was a clear violation of natural justice, the Tribunal set aside the impugned order and remanded the matter to the Adjudicating Authority for a fresh order after granting the Appellant sufficient personal hearing.- The appeal was allowed by way of remand to ensure a fair adjudication process in compliance with the principles of natural justice.This detailed analysis of the judgment highlights the significant issues surrounding the violation of natural justice in the adjudication process, the arguments presented by both parties, and the Tribunal's decision to set aside the order and remand the matter for a fair hearing.