Natural justice requires a fair hearing before ex parte adjudication; plausible non-appearance led to remand for fresh decision.

An ex parte adjudication may be set aside where an assessee shows a plausible cause for non-appearance and seeks time to produce records, because denial of a fair opportunity can violate natural justice. Here, the factory lock-out and absence of files were accepted as an explanation, so the ex parte order was remanded for fresh adjudication after hearing the assessee. The merits of the duty demand and penalty were not examined.

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Issues: Whether the ex parte adjudication, passed despite the assessee's request for time to produce records due to lock-out of the factory, violated principles of natural justice and warranted remand.

Analysis: The adjudicating authority recorded that the matter was proceeded with ex parte because the assessee did not appear despite opportunities. The explanation offered was that the factory had been under lock-out and relevant files were not available, and the assessee had sought time to recover the documents. In these circumstances, the denial of another opportunity was held to have resulted in violation of natural justice. The merits of the duty demand and penalty were not examined.

Conclusion: The ex parte order was set aside and the matter was remanded to the Commissioner for fresh adjudication after giving the assessee an opportunity of hearing.

Final Conclusion: The controversy was not decided on merits, and the adjudication was reopened for reconsideration in accordance with natural justice.

Ratio Decidendi: Where an assessee shows a plausible cause for non-appearance and seeks time to produce records, an ex parte order passed without granting a fair opportunity may be set aside and remanded for fresh adjudication.

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