Case Law Details
Ipinit Vanaspati Ltd. Vs Principal Commissioner (Orissa High Court)
The Orissa High Court recently addressed a case involving Ipinit Vanaspati Ltd. vs. Principal Commissioner, emphasizing the authority’s obligation to follow the directions of the Customs Excise and Service Tax Appellate Tribunal (CESTAT). The court’s ruling sheds light on the significance of providing a fair hearing and complying with the principles of natural justice in matters related to Central Excise.
Detailed Analysis: The petitioners sought to quash the order dated 22.11.2021, confirming a Central Excise duty demand against the petitioner-company. The authority, while dropping a portion of the demand, imposed substantial penalties. The crux of the matter lies in the contention that the authority, the Principal Commissioner, passed the order without affording the petitioners an opportunity of hearing and in violation of natural justice principles.
The learned Senior Counsel argued that despite the CESTAT pointing out errors and remanding the matter for fresh adjudication, the authority failed to provide a fair hearing. The petitioners, despite expressing their intent to participate virtually due to COVID-19 restrictions, were allegedly deprived of the opportunity. This, according to the petitioners, amounted to a violation of their right to a fair and just adjudication.
On the contrary, the Senior Standing Counsel for the GST & Central Excise Department argued that the authority did provide an opportunity of hearing, but the petitioners did not avail it. It was further contended that the appropriate recourse for the petitioners was to appeal the order, and approaching the High Court directly was not maintainable.
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