Natural justice breach led to remand of rebate claim rejection after replies and hearing were ignored.

Rebate claims under Section 11B of the Central Excises and Salt Act, 1944 read with Rule 12(1)(a) of the Central Excise Rules, 1944 were set aside because the replies to the show cause notices were not considered and no effective personal hearing was granted. The record showed compliance with departmental clarifications and timely replies, but the adjudication proceeded without a reasonable opportunity of hearing. An order passed in haste without considering the assessee's response cannot stand as a proper exercise of quasi-judicial power. The original and appellate orders were therefore set aside and the matters remanded for fresh decision in accordance with natural justice.

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Issues: Whether the rebate claims were liable to be set aside and remanded for fresh adjudication on the ground of breach of natural justice.

Analysis: The revision applications concerned rejection of rebate claims under Section 11B of the Central Excises and Salt Act, 1944 read with Rule 12(1)(a) of the Central Excise Rules, 1944. The record showed that the applicants had responded to the departmental clarifications and had filed replies to the show cause notices within time, yet their replies were not considered and no effective personal hearing was granted. An adjudication order passed in haste, without taking replies into account and without affording a reasonable opportunity of hearing, cannot be sustained as a proper exercise of quasi-judicial power.

Conclusion: The orders of the appellate and original authorities were set aside and the matters were remanded for fresh decision after observing the principles of natural justice; the applicants succeeded on the procedural issue, but no decision was rendered on merits.

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