Reasonable opportunity of hearing required before confirming duty and penalties; adjudication remanded for fresh decision.

An adjudication order confirming duty, penalty and director penalties could not be sustained where the assessee had not been given a reasonable opportunity to explain its case with documentary evidence. The Tribunal noted that adjournments had been sought for valid reasons and that some delay was attributable to the department, so the Commissioner should have granted further opportunity before deciding on the record alone. Because the dispute required detailed factual examination, the impugned order was set aside and the matter remanded for fresh adjudication after giving the assessee a reasonable hearing.

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Issues: Whether the adjudication order confirming duty, penalty and director penalties could be sustained when the assessee was not afforded a reasonable opportunity to explain its case with reference to documentary evidence.

Analysis: The Tribunal found that the assessee had sought adjournments for valid reasons and that the department itself had occasioned delays on some dates. In these circumstances, the Commissioner ought to have granted further opportunity before deciding the matter on the basis of records. As the dispute involved detailed factual examination, it was considered more appropriate that the adjudicating authority hear the assessee afresh and consider the material on record after giving a reasonable opportunity of hearing.

Conclusion: The impugned order was set aside and the matter was remanded for fresh decision after granting a reasonable opportunity to the assessee.

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