2012 (9) TMI 946 - HC - VAT and Sales Tax

Summary

Issues involved: Penalty proceedings u/s 67 of KVAT Act; Allegation of denial of opportunity to cross-examine witnesses.

In the present case, the petitioners are facing penalty proceedings initiated against them u/s 67 of the KVAT Act. The main grievance raised by the petitioners is that the 2nd respondent is proceeding with the adjudication proceedings and is proposing to pass final orders without allowing them to cross-examine the eight witnesses listed by them. The learned Special Government Pleader representing the respondents argues that the petitioners have already cross-examined five witnesses, and the seven additional witnesses requested by the petitioners are irrelevant and unnecessary to the dispute at hand. The respondents justify their decision to proceed without examining these seven witnesses based on the lack of relevance of their evidence to the ongoing adjudication.

The court notes that the adjudication process is still pending, and final orders have not yet been passed. It is emphasized that if the evidence of the seven witnesses requested by the petitioners is deemed essential and the matter is concluded without granting them the opportunity to cross-examine these witnesses, it could potentially amount to a violation of the principles of natural justice. However, the court clarifies that the petitioners can raise such a plea only after the 2nd respondent issues the final order upon the completion of the adjudication process currently under consideration. Therefore, the court deems the writ petition premature at this stage, and the petitioners are advised to await the final orders to be passed by the 2nd respondent before pursuing further legal action.

In conclusion, the writ petition filed by the petitioners is dismissed by the court.