Whether non submission of relied upon documents by adjudicating authority amounts to violation of principle of natural justice?

PJ/Case Law/2013-14/2056

Case:- ATUL MANUFACTURERS V/S COMMISSIONER OF CENTRAL EXCISE, AHMEDABAD

Citation:- 2013 (297) E.L.T. 459 (Tri.-Ahmd.)

Brief Facts:- The assessee filed these stay applications and the Hon’ble Tribunal after allowing the stay petitions, take up the appeals themselves for disposal. The main issue involved in these appeals is regarding classification of the product of the appellant. The appellant’s claim is that the product merits classification under Chapter No. 31, while the department’s contention is that the product merits classification under Chapter 38.

Appellant’s Contention:-The appellants submit that the entire show cause notice proceeds on the ground that the Chemical Examiner in his report dated 17-3-2010 has come to a conclusion that their product does not merit classification under Chapter No. 31. It is his submission that while adjudicating the issue, the adjudicating authority has relied upon a letter/report of Chemical Examiner dated 1-7-2011, which was obtained by the adjudicating authority after the personal hearing was concluded and also they were not provided the copy of the same. It is his submission that this specific plea was taken before the first appellate authority who has also not considered their plea in a proper perspective. It is his submission that having not given the copy of the said report, the entire case goes beyond the charges levelled in the show cause notice.

Respondent’s Contention:-The Respondents reiterates the findings of both the lower authorities.

Reasoning of Judgment:- The Hon’ble Tribunal held that the show cause notice proceeds on the ground that Chemical Examiner’s report dated 17-3-2010, which opines that product of the appellant will not get covered under Chapter No. 31. On perusal of the record, they find that adjudicating authority has relied upon the Chemical Examiner’s report dated 1-7-2011, copy of which was not provided to the appellant. In their view, both the lower authorities have erred in not providing the copy of the said report to the appellant on which they are deciding the classification issue. To that extent, both the orders stands passed in violation of principles of natural justice.
In order to meet the ends of justice, they find that the matter should be remitted back to the adjudicating authority. Accordingly, without expressing any opinion on the merits of the case, keeping all the issues open, directing the lower authorities to give a copy of the letter dated 1-7-2011 to the assessee, they set aside the impugned order and direct the adjudicating authority to reconsider the issue afresh, after following the principles of natural justice.

Decision:- The appeal was allowed by way of remand.

Comment:-The gist of this case is that it is very important that all the evidences and documents relied upon by the adjudicating authority while deciding a particular issue are being made available to the assessee also. Non submission of chemical examiner report on the basis of which classification was decided under chapter 38 amounts to gross violation of the principles of natural justice.

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PJ/Case Law/2013-14/2056

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