1994 (5) TMI 79 - AT - Central Excise

Tribunal grants relief for procedural fairness, remands penalty issue for review.

The Tribunal found merit in the appellant's argument regarding the denial of natural justice due to the failure to supply necessary documents for ... Natural Justice - Stay/Dispensation of pre-deposit Issues:1. Denial of principles of natural justice due to failure to supply documents for show cause notices.2. Alleged imposition of penalties on both the sole proprietary concern and the individual.3. Request for remand of the matter to Adjudicating Authority for examination of records and supply of documents.Analysis:Issue 1: Denial of principles of natural justiceThe appellant, a sole proprietor, filed an appeal against an order by the Collector of Central Excise, Meerut, based on 12 show cause notices. The appellant, represented by an advocate, argued that despite requests, the Revenue Authorities did not supply the documents necessary for responding to the show cause notices. The appellant cited a case to support the claim of denial of natural justice. The Tribunal found merit in the argument, noting that the appellant had repeatedly requested the necessary documents and inspection of records, which were not provided. The Tribunal held that denial of principles of natural justice was evident, leading to the decision to dispense with the pre-deposit of duty and penalties.Issue 2: Alleged imposition of penaltiesThe appellant contended that the Revenue Authorities imposed penalties separately on the sole proprietary concern and the individual, which was deemed incorrect in the eyes of the law. Citing a relevant case, the appellant argued against the imposition of penalties on both entities. The Tribunal acknowledged the argument and found it to be a valid concern, contributing to the decision to remand the matter for further examination by the Adjudicating Authority.Issue 3: Request for remand of the matterThe appellant requested a remand of the matter to the Adjudicating Authority to examine the records and supply the necessary documents for responding to the show cause notices. The Tribunal, after considering the arguments from both sides, agreed that there was a denial of natural justice and deemed it appropriate to remand the matter. The Adjudicating Authority was directed to provide the seized documents, allow inspection of records, grant a personal hearing, and ensure cooperation for the completion of adjudication proceedings.In conclusion, the Tribunal allowed the stay application and the appeal by way of remand, setting aside the impugned order and directing the Adjudicating Authority to comply with the directives regarding document supply and inspection.