2001 (1) TMI 580 - AT - Central Excise

CEGAT Remands Appeal for Violation of Natural Justice Principles, Grants Waiver of Pre-deposit

The Appellate Tribunal CEGAT remanded the appeal back to the Commissioner for de novo consideration due to violation of natural justice principles. The ... Ex parte order - principles of natural justice - remand for de novo consideration - waiver of pre-deposit - stay application - dismissal of appeal for non-compliance with interim orderEx parte order - principles of natural justice - dismissal of appeal for non-compliance with interim order - Dismissal of appeal pursuant to non-compliance with an interim stay order passed without hearing the appellants is violative of natural justice and cannot stand. - HELD THAT: - The Tribunal found that the Commissioner (Appeals) passed the interim stay order without giving the appellants an opportunity of hearing. In view of the Madras High Court decision in ITC Ltd. (supra) and consistent practice of the Tribunal setting aside ex parte orders made by the Commissioner (Appeals), the dismissal of the appeal on the ground of non-compliance with such an interim order was held to be contrary to the principles of natural justice and hence unsustainable. The Tribunal therefore set aside the impugned ex parte dismissal insofar as it arose from an interlocutory order made without hearing the appellants. [Paras 2, 3]Impugned dismissal set aside as violative of natural justice and remanded for fresh consideration.Remand for de novo consideration - stay application - Matter remanded to the Commissioner (Appeals) for de novo consideration of the stay application with a direction to hear the appellants before passing orders. - HELD THAT: - Following the setting aside of the ex parte dismissal, the Tribunal remanded the appeal to the CCE (A) for fresh consideration of the stay application. The remand is for de novo consideration and includes an explicit direction that the Commissioner (Appeals) must afford the appellants an opportunity of being heard and then pass a considered order on the stay application. [Paras 2, 3]Appeal remanded to CCE (A) for de novo consideration of the stay application with direction to hear the appellants.Waiver of pre-deposit - Waiver of the pre-deposit was granted by the Tribunal in the course of taking up the appeal. - HELD THAT: - While setting aside the ex parte dismissal and remanding the matter, the Tribunal also granted waiver of the requirement to make the pre-deposit of the amount involved in the appeal, thereby permitting the appeal to be taken up notwithstanding the prior dismissal for non-compliance. [Paras 3]Waiver of pre-deposit granted and appeal taken up.Final Conclusion: Impugned ex parte dismissal under Section 35F set aside as violative of natural justice; waiver of pre-deposit granted; matter remanded to the Commissioner (Appeals) for de novo consideration of the stay application with a direction to hear the appellants before passing orders. The Appellate Tribunal CEGAT, Chennai remanded the appeal back to the Commissioner for de novo consideration due to violation of natural justice principles. The appeal was dismissed for non-compliance with an interim order of stay without giving the appellants an opportunity to be heard. The Tribunal granted waiver of pre-deposit and directed the Commissioner to hear the appellants before making a decision on the stay application.