Natural justice requires notice and opportunity to meet post-hearing material before duty or penalty can be confirmed.

Reliance on material gathered after the personal hearing, without notice to the assessee or an opportunity to meet that material, violated the requirements of fair hearing and natural justice. The adjudicating authority had made post-hearing factual inquiries about the manufacture of steam and used them to confirm duty and penalty, which introduced procedural infirmity. The order was set aside and the matter was remanded for a fresh decision after granting a reasonable opportunity of hearing and complying with natural justice.

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Issues: Whether the order confirming duty and penalty was vitiated because the adjudicating authority relied on investigations conducted after the personal hearing without putting the assessee on notice, warranting remand for fresh decision.

Analysis: The appellants had already been heard when the personal hearing was fixed. The adjudicating authority thereafter visited the unit and made factual inquiries regarding the manufacture of steam, but based the conclusion on that post-hearing investigation without informing the appellants or giving them an opportunity to meet the material collected. Reliance on such material, gathered after hearing and without notice, introduced an infirmity and offended the requirements of fair hearing.

Conclusion: The order was set aside and the matter was remanded for a fresh decision after affording reasonable opportunity of hearing and complying with the principles of natural justice.

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