Natural justice and personal hearing requirements justified remand where the assessee was denied a hearing at both adjudication and appeal.

Denial of a fair opportunity of hearing before both the adjudicating and appellate authorities was treated as a breach of natural justice. The commentary notes that, even where written grounds were filed, the assessee could not be denied a personal hearing before merits were decided. Because no hearing was granted at either stage, the proceedings were set aside and remanded for fresh adjudication on merits. The assessee was also protected from insistence on pre-deposit in the remanded proceedings.

---

---

Issues: Whether denial of an opportunity of hearing before the adjudicating and appellate authorities violated the principles of natural justice and warranted remand of the proceedings.

Analysis: The dispute arose from confirmation of Modvat credit recovery under Rule 57-I of the Central Excise Rules, 1944 and the subsequent dismissal of the appeal under Section 35F of the Central Excise Act, 1944 without affording the assessee an opportunity to appear. The Tribunal held that even where written grounds are filed, the assessee's right to be heard before the adjudicating authority and the appellate authority cannot be denied. Since no hearing was granted on either occasion, the order suffered from breach of natural justice.

Conclusion: The issue was decided in favour of the assessee. The appeal was allowed and the matter was remanded to the Commissioner for fresh consideration after granting an opportunity of hearing without insisting on pre-deposit.

Final Conclusion: The proceedings were set aside for fresh adjudication on merits after a proper hearing, and the assessee was protected from the pre-deposit condition in the remanded proceedings.

Ratio Decidendi: Denial of a fair opportunity of hearing to an assessee before deciding the matter on merits or at the appellate stage constitutes a violation of natural justice and justifies remand for fresh consideration.

---