Natural justice in clandestine removal disputes required waiver of pre-deposit and remand for fresh adjudication.

Allegations of clandestine removal and related penalties were examined in the context of waiver of pre-deposit and remand for breach of natural justice. The record showed that relied-upon documents were not supplied to one noticee and no personal hearing was granted, which amounted to denial of a reasonable opportunity of defence. Because fresh adjudication was required, the connected appellants were also not treated differently to avoid inconsistency in later proceedings. Pre-deposit was waived and the matter was remanded for de novo decision after supply of documents and a personal hearing.

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Issues: Whether the demand and penalties required waiver of pre-deposit and remand on account of violation of natural justice in a case involving alleged clandestine removal of goods.

Analysis: The dispute concerned alleged clandestine removal of goods by the manufacturer and receipt by another concern, with penalties imposed on the firm, its employee, and the managing director. The record disclosed that relied-upon documents were not supplied to Shri Ganesh Mathur and no personal hearing was granted to him, amounting to denial of a reasonable opportunity of defence. Since the matter would have to go back for fresh adjudication, a different view on the same issue for the connected appellants was considered inappropriate, as it could create inconsistency later.

Conclusion: The requirement of pre-deposit was waived, and the matter was remanded to the adjudicating authority for fresh decision after granting personal hearing and supplying copies of the relied-upon documents.

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