Natural justice in excise adjudication: ex parte order set aside where counsel's default denied a fair opportunity to respond.

An ex parte central excise adjudication imposing duty, penalty and confiscation was set aside because the assessee was denied a fair opportunity to respond after his advocate failed to file a written reply. The HC held that natural justice requires a meaningful chance to defend, and that a litigant should not ordinarily suffer adverse consequences for counsel's default where the record showed counsel had been engaged and had sought the relevant documents. Treating the matter as one of law arising from proved facts, the HC held the ex parte order was vitiated and directed fresh adjudication after supply of the relied-on documents and an opportunity to file a written representation.

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Issues: Whether an ex parte adjudication order imposing central excise duty, penalty and confiscation should be set aside where the assessee failed to file a written reply because of the default of his advocate, and whether the resultant denial of effective opportunity violated the principles of natural justice.

Analysis: The proceeding concerned a substantial excise demand, penalty and confiscation made ex parte after the show cause notice was not answered. The Court held that fairness and reasonableness require a meaningful opportunity to defend, and that a litigant who has entrusted the matter to counsel should not ordinarily suffer for the counsel's inaction or omission. On the material before it, the Court accepted that the advocate had been engaged, had sought the relevant documents, and that the petitioner's failure to reply could not fairly be attributed to the petitioner personally. The Court also treated the question as one of law arising from proved facts, not as a pure question of fact.

Conclusion: The ex parte adjudication was vitiated and set aside, and the matter was directed to be adjudicated afresh after supplying the relied-on documents and affording the petitioner an opportunity to file a written representation.

Ratio Decidendi: A party should not be made to suffer an adverse ex parte adjudication for the default or omission of his advocate when the circumstances show denial of a fair and reasonable opportunity to respond.

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