Merely Sending Order-in-Original by Registered Post would not Amount to Valid Communication: CESTAT [Read Order]

The Mumbai bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that merely sending an order-in-original by registered post would not amount to valid communication.

 Metro Fashions, the appellant challenged the impugned order dated 29.11.2019 passed by Commissioner of Customs (Appeals), Mumbai III rejecting the appeal filed by the appellant on the ground of limitation.

A demand cum show cause notice was issued to the appellant demanding Rs.1,58,101/- being the drawback amount obtained by the appellant for the exports made under the shipping bills since according to the department, the exporter has not realized the foreign exchange involved in the goods exported under the said Shipping bills as per Rule 16(A) (1) and (2) of Customs, Central Excise and Duties and Service Tax Drawback Rules, 1995.

The same was confirmed by the adjudicating authority vide Order-in-Original along with a penalty of Rs.10,000/- on the exporter.  On appeal, the Commissioner (Appeals) was rejected on the ground of limitation without going into the merits of the appeal. 

It was contended that the appellant received the copy of the order-in-original only on 13.09.2019 that too when they personally visited the authority’s office and the appeal was filed by them on 24.10.2019 which is well within the period of limitation.  He further submitted that the department failed to produce any evidence to establish that the Order-in Original was served/communicated by them at any earlier point in time. 

It was evident that the date of the adjudicating order is 28.3.2018 but the same was not received by the appellant and the certified copy of the same was received by them on 13.9.2019 that too when they approached the authorities concerned therefore the period of limitation has to be calculated from 13.9.2019 and not from 28.3.2018.

“Merely sending the Order-in-Original/show cause notice by registered post would not amount to communication/service of the Order-in-Original.”, the bench held.

The CESTAT bench comprising Mr Ajay Sharma, Member (Judicial) observed that the appellant received a copy of the Order-inOriginal on 13.9.2019 the appeal before the Commissioner (A) was filed on 24.10.2019 which is well within a period of three months from the date of receipt/communication of the Order-in-Original.

The bench set aside the impugned order and remanded the matter back to the Commissioner (Appeals) to decide the same on merits after following the principle of natural justice within a period of three months.

To Read the full text of the Order CLICK HERE

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