1. For the purpose of enforcing the provisions of the Customs Act or the Central Excise Act or the Finance Act, 1994, the officers of Customs & Central Excise are empowered to decide whether an infringement or contravention has taken place and whether penal action is called for. Such procedures are known as adjudication proceedings and are also followed when the questions of classification, valuation, grant of refund, drawback, etc. are to be decided. Such proceedings are quasi-judicial in nature and do not require adherence to rigid court room proceedings. However, principles of natural justice have to be strictly followed.
2. The term ―Principles of Natural Justice‖ (PNJ), derived from the expression
„Jus
Natural” of the Roman Law, does not have force of law as they may or may not form part of statute but they are necessarily to be followed. The adherence to principles of natural justice as recognized by all civilized States is of supreme importance when a quasijudicial body embarks on determining disputes between the parties, or any administrative action involving civil consequences is in issue. These principles are well settled.
3. Principles of natural justice are those rules which have been laid down by the Courts as being the minimum protection of the rights of the individual against the arbitrary procedure that may be adopted by a judicial, quasi-judicial and administrative authority while making an order affecting those rights. These rules are intended to prevent such authority from doing injustice.
4. The rules of natural justice do not supplant the law of the land but only supplement it. It is now firmly established that in the absence of express provisions in any statute dispensing with the observance of the principles of natural justice, such principles will have to be observed in all judicial, quasi-judicial and administrative proceedings which involve civil consequences to the parties. (A.K Kraipak vs. Union of India (AIR 1970 S.C.150) & Maneka Gandhi (AIR 1978 S.C.597).
5. Natural justice is the essence of fair adjudication, deeply rooted in tradition and conscience, to be ranked as fundamental. The purpose of following the principles of natural justice is the prevention of miscarriage of justice.
6. Natural Justice recognizes three principles: (i) Nemo debet essc judex in propria causa. (ii) Audi alterem partem, and (iii) Speaking orders or reasoned decisions. The first two have come to us from the Roman Law and the third one is a recent Innovation due to the rapid development of the constitutional as well as administrativ
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