ORDER
S.L. Peeran, Member (J)
1. The stay and appeal arises from an ex parte order of dismissal of appeal by the Commissioner (Appeals) by his order No. 93/2000 (V)-C.E., dated 9-5-2000 on the ground that they have not pre-deposited the amount as directed by him by his ex parte order in stay petition No. 24/2000 (V)-C.E., dated 8-1-2000. The direction given was that appellants should pre-deposit Rs. 50,000/- towards penalty under Section 11 AC of the Central Excise Act. It is the contention of the appellants that they had specifically asked for a hearing of the stay petition and the same had not been granted and the order had come to be passed in violation of principles of natural justice. Therefore, they seek for setting aside the order and for remand of the matter for de novo consideration. In this regard, they rely on the decision of Madras High Court in the case of ITC and Ors. v. CCE reported in 2000 (1) ECL 97 by which the Madras High Court has given a direction to the Commissioner (Appeals) that they shall grant a hearing in all stay matters and not to pass ex parte orders. The said order has been followed by the Tribunal in larger number of appeals which have been dismissed by this very same Commissioner (Appeals), Hyderabad for de novo consideration.
2. Ld. DR Shri S. Kannan reiterates the departmental view.
3. On careful consideration of the submissions, we are satisfied that there is gross violation of principles of natural justice. We had given direction to the Commissioner (Appeals), Hyderabad not to dismiss the appeal ex parte and not to pass orders under Section 35F without granting an opportunity of hearing. Unfortunately, despite the order of the Madras High Court in the case of ITC and Others (supra) and large number of orders of the Tribunal, the same is not being accepted and the procedure is being continued to be followed in passing ex parte orders which is unnecessarily leading to multiplication of proceedings. Therefore, we are by this order directing the Commissioner (Appeals) not to again pass similar orders without granting an opportunity of hearing. Taking overall facts and circumstances, waive of pre-deposit and stay is granted. Appeal is taken up and remanded to the Commissioner (Appeals) with a direction that he shall grant opportunity of hearing to the appellants in the stay petition and only thereafter decide the case on merits. Ordered accordingly.