Quashed Central Excise order passed without providing opportunity of personal hearing

Last updated: 22 July 2021

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The Madras High Court has quashed a Central Excise order passed against T.M. Hotels Private Limited. The court found the order to be arbitrary and illegal because the company was not given a proper opportunity for a personal hearing. Summons were mistakenly sent to the company instead of its legal counsel, potentially leading to the company being unaware of the hearing. The High Court has ordered a fresh consideration of the case, ensuring the company is given a chance to present its defence.

Court :
Madras High Court

Brief :
In T.M. Hotels Private Limited v. the Additional Commissioner of Central Excise [W.P. No. 14099 of 2014 and MP No. 1 of 2014 decided on July 6, 2021] T.M. Hotels Private Limited ('the Petitioner') prayed for quashing Order in Original No. 11/2014 (ST) dated April 04, 2014 ('Impugned order') for being arbitrary and illegal as it was passed without providing an opportunity of personal hearing to the Petitioner.

Citation :
[W.P. No. 14099 of 2014 and MP No. 1 of 2014 decided on July 6, 2021

In T.M. Hotels Private Limited v. the Additional Commissioner of Central Excise [W.P. No. 14099 of 2014 and MP No. 1 of 2014 decided on July 6, 2021] T.M. Hotels Private Limited ('the Petitioner') prayed for quashing Order in Original No. 11/2014 (ST) dated April 04, 2014 ('Impugned order') for being arbitrary and illegal as it was passed without providing an opportunity of personal hearing to the Petitioner.

The Hon'ble High Court, Madras noted that the summon were issued to the Petitioner instead of the counsel for the Petitioner (in whose name vakalatnama was given). Thus, there is a possibility that the Petitioner would not have informed about the summons to their counsel regarding the personal hearing and the same resulted in passing of the Impugned order without hearing the learned counsel of the Petitioner.

Held that the Petitioner should be provided with an opportunity of personal hearing for the purpose of submitting the judgments, documents and the grounds raised to defend their case.

Accordingly, quashed the Impugned order and remanded back for fresh consideration after providing an opportunity of being heard before passing order on merits and in accordance with law as expeditiously as possible.

FAQ :

The main issue was that a Central Excise order was passed against T.M. Hotels Private Limited without providing them with an opportunity for a personal hearing.

The order was quashed because it was deemed arbitrary and illegal, as the company was not given a chance to be heard, and summons were incorrectly issued to the company instead of its legal counsel.

The High Court ordered that the Impugned order be quashed and the case be remanded for fresh consideration, ensuring T.M. Hotels Private Limited is given an opportunity for a personal hearing.

T.M. Hotels Private Limited was represented by a legal counsel, to whom a 'vakalatnama' was given.

A personal hearing allows the assessee to submit judgments, documents, and grounds to defend their case before an order is passed.

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Judgement posted by

Bimal Jain

Service

FCA, FCS LLB with21 Yrs of Experience inTaxation Indirect and Direct: Education Qualification: B.Com (Hons) Chartered Accountants Company Secretary LLB Qualified SAP FI/CO Consultants Professional Membership: Chairmanof Indirect Tax Committee of PHD Chamber of Commerce Member of Indirec ... Read more

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