[Excerpts from a recent speech of RBI Governor Dr. Raghuram G. Rajan]

By Vijay Kumar

One-sided adjudications based upon allegations made in the show cause notice needs to be avoided as the same shakes the public confidence in the administration of justice: CESTAT

IN a recent order, the Tribunal observed, "It is cardinal principle of law that nobody should be condemned without hearing and affording the accused person a reasonable opportunity to put forth his defence. In the absence of any defence reply by the accused persons, it is not only difficult but (also) impossible for any adjudicating authority to come to a fair and just finding. His conclusions are bound to be guided by the allegations made in the show cause notice, as admittedly the there would not be any rebuttal to the same by the concerned persons. Such type of one sided adjudications based upon the allegations made in the show cause notice needs to be avoided as the same shakes the public confidence in the administration of justice."

Holding that the order has been passed in gross violation of principles of natural justice, without expressing any opinion on the merits of the case, the Bench deemed it fit to set aside the same and remand the matter to the Commissioner for de novo adjudication.

In this case, though the Member (T) agreed with Member (J) on remanding the case, he ordered that the appellant shall not be entitled to refund of amount of Rs.1.50 crore deposited prior to this remand order as protection measure of Revenue .

Now, is this the opinion of the Bench or only one Member? Should this direction of one Member not be approved by the other Member to make it the order of the Bench?

We will bring you this order on Monday.