Natural justice requires a clear chance to defend; ex parte customs adjudication was remanded for fresh hearing.

An ex parte adjudication cannot stand where the assessee was not given a clear, liberal, and unambiguous opportunity to produce evidence, seek summons or cross-examination, and present a defence. Although the duty to place evidence before the authority lay on the assessee, the record showed that the assessees were labouring under a misapprehension about the procedure and were not effectively heard. The Tribunal held that deciding the matter without their effective participation prejudiced natural justice and the cause of justice. The order was set aside and the matter remanded for fresh adjudication from the show cause notice stage, with a proper opportunity to be heard and to lead evidence.

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Issues: Whether the ex parte adjudication order could be sustained when the assessees were not given a clear and effective opportunity to produce evidence, seek cross-examination of witnesses, and present their defence.

Analysis: The Tribunal found that the assessees proceeded on a mistaken understanding that the adjudicating authority would itself conduct enquiries and communicate the results before hearing them. It held that the duty was on the assessees to place their evidence before the authority and, if necessary, seek summons and cross-examination of witnesses. However, the record showed that the opportunity of hearing was not made liberal, clear, and unambiguous, and the assessees were labouring under a misapprehension of the procedure. In those circumstances, deciding the matter without their effective participation meant that several claims were adjudicated in absentia and the cause of justice suffered.

Conclusion: The ex parte order could not be sustained and the matter had to be remanded for fresh adjudication from the stage of the show cause notice, with a proper opportunity to be heard and to lead evidence.

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