Service of notices: returned postal articles defeat deemed service; alternative modes including email required before fresh hearing.

Service of notices under the Customs Act requires effective delivery; a deeming provision for postal service cannot be invoked where postal articles are returned with endorsements indicating non-delivery, because those endorsements rebut deemed service. Where return-of-service is on file, authorities must attempt alternative statutory modes of service and may use an email address on record as an additional practical method before proceeding. Failure to ensure effective service when postal delivery has failed results in denial of opportunity of hearing and warrants setting aside the impugned appellate action and fresh consideration after proper service and personal hearing.

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Issues: Whether the appellate order dated 17 March 2025, passed without affording the petitioner an opportunity of hearing because notices of hearing returned undelivered, was in violation of principles of natural justice and requires interference/remand.

Analysis: Section 153 of the Customs Act, 1962 provides multiple modes for service of notices and contains a deeming provision that a notice sent by post is deemed served at the expiry of the normal transit period only if the contrary is not proved. Returned postal articles with endorsements indicating non-delivery constitute proof of contrary facts. Where returned notices are on file, reliance on deemed service is not permissible without attempting alternative modes of service provided under the statute. An appellate order made without ensuring effective service by available alternative methods, when postal service has failed, results in denial of the opportunity of hearing. Email service is an available and expected additional mode where an email address is on record and may be resorted to along with other prescribed modes.

Conclusion: The appellate order dated 17 March 2025 is set aside for violation of principles of natural justice and the matter is remanded to the appellate authority for fresh consideration with direction to afford the petitioner an opportunity of personal hearing and to effect service by appropriate alternative modes expeditiously.

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