Adjudication Order passed in State of Delirium!

By Vijay Kumar

IN a recent Order, the CESTAT observed,

1. It seems that the "discussion and finding" portion of the impugned order is a shoddy and careless cut-and-paste job from another adjudication order which the adjudicating authority may have passed in relation to an earlier show cause notice which finds mention in the show cause notice dated 24.05.2012 related to the impugned order.

2. There are some more such grave errors in the impugned order but we refrain from enumerating them all because what we have pointed out above is itself more than sufficient to infer that the impugned order is a product of complete non-application of mind on the part of the adjudicating authority who seems to have passed it in a state of delirium.

3. Such conduct on the part of the adjudicating authority is too irresponsible to be ignored as it makes a mockery of the quasi-judicial process and can shake the faith of the assessees in the adjudication proceedings thereby inter alia adversely impacting the "ease of doing business" environment in the country.

4. Such conduct clearly falls within the unacceptable range of gross adjudicatory indiscipline which is a matter of concern for CESTAT in its official capacity as an appellate body.

5. Imposing of costs is one of the means available to CESTAT to instil a sense of responsibility and discipline in the lower adjudicating authorities with regard to adjudication matters and this is a fit case for CESTAT to exercise the power to do so.

The CESTAT imposed costs of Rs. 10,000/- on the adjudicating authority who passed the impugned order.

Incidentally, an almost similar observation was made by the same Bench in the case of Coca Cola (I) Pvt. Ltd. 2015-TIOL-613-CESTAT-DEL and a cost of Rs.25,000/- was imposed on the same Adjudicating authority.

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