MODERN SYNTEX (I) LTD. Vs. CCE, JAIPUR

JUDGEMENT

(1.) Matter called. No representation for the applicants. Ld. JDR, Sh. Swatantra Kumar represents the Revenue.

(2.) Upon examination of the records and hearing Id. DR, I find that the appeal itself requires to be finally disposed of at this stage.

(3.) The appellants have challenged the order of the Commissioner (Appeals), whereby their appeal was rejected on the sold ground of non -compliance with the provisions of Section 35F of the Central Excise Act. It appears from the impugned order and the memorandum of the present appeal that the Commissioner (Appeals) had by "Interim Stay Order" dated 26.7.2000 directed the party to deposit an amount of Rs.2.25 lakhs for purposes of Section direction, and the former rejected the appeal as per the impugned order without giving any opportunity of being heard to the appellants. A copy of the Interim Stay Order is also available on record, which indicates the appellants had admitted liability for payment of duty of excise to the extent of Rs.2.25 lakhs. The impugned order also contains a mentioned of such an admission. In the ground of appeal, I have not come across anything that goes to controvert the admission. Since the amount directed to be deposited is only Rs. 2.25 lakhs, liability whereof was admitted by the assessees, I do not find anything wrong with the direction of Id. Commissioner (Appeals) for depositing that amount for the purpose of Section 35F of the Act. However, the lower appellate authority ought to have given an opportunity of personal hearing to the appellants before passing the impugned order. In other words, the impugned order cannot be sustained in law on account of breach of principles of natural justice. I, therefore, set aside the impugned order and allow the present appeal by way of remand, directing the Commissioner (Appeals) to dispose of the appeal before him on its merits after affording a reasonable opportunity of being personally heard, to the appellants. It is made clear that such hearing will be subject to condition that an amount of Rs.2.25 lakhs be deposited by the appellants with the lower appellate authority within a period of 6 weeks from today.