Natural justice requires effective access to relied-upon documents before adjudication and hearing can be concluded.

Denial of an effective opportunity to reply and be heard vitiated the adjudication where the assessees had repeatedly sought copies or inspection of seized documents relied on in the show cause notice. Their requests were acknowledged, and they consistently stated that a proper reply could not be filed without access to those materials. Although hearings were fixed and concluded, the absence of the documents prevented an effective defence. The adjudication was therefore unsustainable, and the order was set aside with the matter remanded for de novo adjudication after furnishing an opportunity to reply and personal hearing.

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Issues: Whether the adjudication order was vitiated for breach of the principles of natural justice because effective hearing was not granted before confirming the duty demand and penalties.

Analysis: The assessees repeatedly sought copies or inspection of seized documents referred to in the show cause notice so that they could file a proper reply. The record showed that their requests were acknowledged and that they consistently explained their inability to attend personal hearing without access to those materials. The department proceeded to fix and conclude hearings, but the circumstances showed that the reply could not be effectively filed in the absence of the documents. In these facts, the denial of an effective opportunity of hearing rendered the adjudication unsustainable.

Conclusion: The order was set aside and the matter was remanded to the Commissioner for de novo adjudication after furnishing opportunity to reply and personal hearing.

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