2014 (12) TMI 199 - AT - Central Excise

Principle of natural justice order of adjudicating authority rejecting the application for cross examination - right to cross examine - whether the main appellant M/s Union Quality Plastic Ltd has engaged himself in clandestine removal of finished goods which has been worked out upon the shortage of raw material /finished goods during the visit of the preventive officers - Held that - Following decision of Mahek Glazes Pvt Ltd 2013 (7) TMI 128 - GUJARAT HIGH COURT - Matter remanded back - Decided in favour of assessee.

Summary

Issues:
Violation of principles of natural justice regarding denial of cross-examination.

Analysis:
The judgment by the Appellate Tribunal CESTAT Ahmedabad involved four appeals arising from the same Order-In-Original (OIO) concerning the alleged clandestine removal of finished goods by the main appellant. The primary issue for consideration was whether the denial of cross-examination constituted a violation of natural justice. The appellant's counsel contended that the denial of cross-examination without prior notice infringed upon the principles of natural justice. Reference was made to a judgment by the Hon'ble High Court of Gujarat in a similar case, emphasizing the importance of granting the right to cross-examination. The Departmental Representative reiterated the findings of the Adjudicating Authority on the matter.

The Appellate Tribunal, after hearing both sides and examining the records, decided to remand the case back to the Adjudicating Authority solely on the grounds of the violation of principles of natural justice. The Tribunal refrained from making any findings on the merits of the case. The impugned order was scrutinized, specifically Paragraph No. 27, where the Adjudicating Authority had addressed the issue of cross-examination. The Tribunal acknowledged the arguments presented by the appellant's counsel regarding the settled law on denial of cross-examination as established by the Hon'ble High Court.

The Tribunal highlighted the importance of adhering to the principles of natural justice and cited the judgment by the Hon'ble High Court, emphasizing the need for a separate order on the application for cross-examination before passing a final adjudication order. Consequently, the impugned order was set aside, and all appeals were allowed for remand to the Adjudicating Authority. The Adjudicating Authority was directed to reconsider the issue afresh, following the legal precedent set by the High Court, and conduct a de novo adjudication based on the principles of natural justice. The appeals were disposed of in accordance with the directions provided in the judgment.