Tribunal Remands Case for Fresh Order After Setting Aside Ex-Parte Decision Due to Appellant's Absence in Prior Hearings.

The Tribunal set aside the ex-parte order passed by the Adjudicating Authority due to the appellant's absence in previous hearings. The Tribunal found that the appellant, through their advocates, effectively argued during the appeal hearing. Consequently, the matter was remanded to the Adjudicating Authority for a fresh order, allowing the appellant an opportunity for a personal hearing and submission. The appeal was allowed by way of remand, with the decision pronounced in open court on 09.11.2023.

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Issues involved:
The appeal challenges custom duty/ Excise duty demand on raw material used in excess shrinkage and waste generated in the manufacture of excisable goods in the EOU.

Custom Duty/ Excise Duty Demand:
The appellant challenged the duty demand on raw material used in excess shrinkage and waste in the manufacture of excisable goods. The appellant's counsel argued that once duty-free raw material is used in manufacturing finished goods, forgone duty cannot be demanded. The counsel cited precedents like CCE Vs. Sanjari Twisters and Vandevi Texturisers Pvt. Ltd. Vs. CCE to support this argument. The Authorized Representative for the revenue reiterated the findings in the impugned order.

Ex-Parte Order and Natural Justice:
The Tribunal noted that the impugned order was passed ex-parte as the appellant failed to attend the hearings and did not reply to the notices. The Adjudicating Authority observed that despite multiple opportunities for hearings, the appellant did not respond, leading to the order being passed ex-parte. However, the Tribunal found that the appellant was present during the appeal hearing and effectively argued their case through their advocates. Considering this, the Tribunal set aside the impugned order and remanded the matter to the Adjudicating Authority for a fresh order after allowing personal hearing and submission from the appellant.

The appeal was allowed by way of remand to the adjudicating authority, providing the appellant with an opportunity to present their case. The decision was pronounced in the open court on 09.11.2023 by the Hon'ble Members of the Tribunal.

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