High Court overturns Customs Commission order, grants petitioner new hearing

The High Court set aside the order passed by the Customs and Central Excise Settlement Commission, directing a fresh order to be issued. The petitioner was granted another opportunity to present their case before the Commission, ensuring compliance with principles of natural justice. The Court retained the petitioner's deposit with the Department until the issuance of the new order and scheduled further proceedings for the petitioner.

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Issues:

Violation of principles of natural justice in the order passed by Customs and Central Excise Settlement Commission.

Analysis:

The petitioner approached the High Court seeking to quash the order dated 30-5-2005 passed by the Customs and Central Excise Settlement Commission, New Delhi, alleging a violation of principles of natural justice. The petitioner had initially approached the Commission under Section 127B of the Act. The petitioner contended that after partial arguments on 15-3-2005, the case was adjourned to 15-4-2005 with directions for both parties to submit their written submissions. However, on 15-4-2005, no proceedings occurred, and the petitioner received the final order dated 30-5-2005, indicating the final hearing date as 15-3-2005. The petitioner argued that the case's arguments were incomplete, and further submissions were necessary based on the written submissions requested. The Commission had fixed the petitioner's total liability at Rs. 71,53,952/-, of which the petitioner had already paid Rs. 29,83,900/- and an additional Rs. 30 lacs during the ongoing petition. The petitioner sought an opportunity to present his case before the Commission.

The High Court, after hearing both parties, concluded that justice would be served by granting the petitioner another opportunity to be heard before the Commission. The Court set aside the impugned order and directed the Commission to issue a fresh order in compliance with the law, providing a reasonable opportunity for the petitioner to present his case. The Court specified that the petitioner's deposit would remain with the Department until the issuance of the fresh order and any subsequent directives. The Court scheduled the petitioner to appear before the Commission for further proceedings on 5-6-2006. Additionally, the Court ordered the copy of the order to be provided immediately upon payment of standard charges.

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