Imposition of penalty without opportunity of being heard cannot be sustained

C.C.E.-Ahmedabad-ii Vs Leamak Healthcare P Ltd (CESTAT Ahmedabad) CESTAT Ahmedabad held that imposition of penalty without granting an opportunity of being heard is against the principles of natural justice and accordingly cannot be sustained. Facts- M/s. Leamak Healthcare P Ltd. (LHL) are engaged in the manufacture of confectionary items on behalf of M/s. ITC Ltd. on job work basis. As per the agreement entered between LHL and ITC, the packing material has been supplied by ITC and the goods manufactured by the LHL were handed over to ITC at factory gate. The LHL was paying Central excise duty...