Right to fair hearing vitiates appellate orders lacking opportunity to be heard; matter remitted for fresh hearing.

Appellate decision set aside for violation of the right to be heard: the appellate order that allowed respondents and annulled confiscation and penalties was quashed due to denial of opportunity to participate in the hearing, requiring remand for de novo decision after providing both sides a proper hearing. The note relies on procedural provisions under the Customs Act permitting adjournment and remand and records that burden of proof on challenges to seizure remains a governing evidentiary principle; procedural fairness and clear reasons are essential to validity.

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Issues: (i) Whether the Commissioner (Appeals) order suffered from gross violation of principles of natural justice by denying the Department a proper opportunity of hearing and, if so, whether the impugned order must be set aside and remitted for fresh decision.

Analysis: The appeals arise from an order of the Commissioner (Appeals) which allowed respondents and set aside adjudication that confiscated goods and imposed penalties under the Customs Act, 1962. The record shows the Department asserted it was not provided an online link to participate in the scheduled personal hearing and was absent at the time of final hearing. Statutory provisions governing appellate procedure and adjournment powers, including Section 128(1-A) and Section 128-A of the Customs Act, 1962, vest the Commissioner (Appeals) with authority to grant time and to refer matters back where procedural fairness has not been observed. Section 129(2) provides review mechanism at Commissioner level and Section 123 allocates the burden of proof on parties challenging seizure or confiscation. Established precedents require administrative and quasi-judicial bodies to afford a fair hearing and to give clear reasons; a denial of opportunity to be heard is a procedural infirmity warranting setting aside the impugned order without entering into merits.

Conclusion: The Commissioner (Appeals) order is set aside for gross violation of principles of natural justice and the matter is remitted to the Commissioner (Appeals) to be decided de novo after affording due and proper opportunity of hearing to both sides in accordance with law.

Ratio Decidendi: Where an appellate authority decides an appeal without affording a party a proper opportunity of hearing, the defect of violation of audi alteram partem vitiates the order and requires setting aside and remand for fresh adjudication to ensure procedural fairness.

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