Natural justice requires personal hearing before penalty; ex parte customs adjudication was set aside and remanded.

An ex parte penalty adjudication was held to breach natural justice because the adjudicating authority proceeded without granting a personal hearing or any meaningful opportunity of defence. As personal hearing was required before penal consequences were imposed, the order could not stand. The ex parte order was set aside and the matter was remanded to the Commissioner of Customs for fresh adjudication after giving the applicant a reasonable opportunity of hearing.

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Issues: Whether the ex parte adjudication order imposing penalty was liable to be set aside for breach of natural justice and the matter remanded for fresh decision.

Analysis: The adjudicating authority proceeded without granting personal hearing. The order was passed ex parte although penal consequences were visited on the applicant. Since personal hearing was necessary before imposing penalty and the opportunity of defence was not afforded, the adjudication was found to be in breach of the principles of natural justice.

Conclusion: The ex parte order was set aside and the matter was remanded to the Commissioner of Customs for a fresh decision after giving the applicant a reasonable opportunity of hearing. The appeal succeeded by remand.

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