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of <h1>Invalid service of show cause notice under Customs Act; lack of natural justice; penalty deemed improper.</h1> The Tribunal held that the show cause notice was not validly served under Section 153 of the Customs Act as the appellant's absence during delivery did ... Show Cause Notice - Natural Justice - Personal hearing Issues:1. Failure to serve show cause notice as required under Section 153 of the Customs Act.2. Lack of issuance of personal hearing notice under Section 124 of the Customs Act.Analysis:1. The appellant contested the penalty imposed on them, arguing that the show cause notice was not served as per Section 153 of the Customs Act. The respondent, however, claimed that the notice was sent via registered post, with multiple delivery attempts. The Tribunal noted that the notice was returned undelivered with an endorsement stating the appellant was not found during the delivery time. Refusal of notice would constitute service, but absence does not. Citing a Supreme Court case, the Tribunal concluded that absence does not equal refusal, and thus, the notice was not served on the appellant. The principles of service under Section 153 were not met, necessitating proper service for compliance.2. Additionally, the appellant argued that no personal hearing notice was issued under Section 124 of the Customs Act. The Tribunal found no evidence in the impugned order supporting the claim of a personal hearing notice being sent to the appellant. Failure to provide a personal hearing notice violates the principles of natural justice. Consequently, the Tribunal deemed the penalty of Rs. 2,00,000/- imposed on the appellant as not in accordance with the law. The adjudicating authority was directed to serve a show cause notice following Section 153 procedures, ensuring the appellant receives a fair opportunity to respond and present their case. The appellant agreed to receive the notice through their Advocate and requested a chance to file a reply, followed by a personal hearing to ensure compliance with natural justice principles.
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