2017 (11) TMI 1519 - AT - Central Excise

Clandestine removal - rejection of the request for cross-examination of witnesses - natural justice - Held that - the Hon ble High Court has not set aside the order of Tribunal dated 2.11.2015 but has confined the remand with a direction to the Tribunal to look into the plea regarding cross-examination of persons - the Tribunal has remanded the matter to the adjudicating authority with regard to certain point. Therefore, in the interest of justice, the adjudicating authority shall also consider the plea of the appellant for cross-examination of the witnesses - appeal allowed by way of remand.

Summary

Issues:
1. Alleged duty evasion and clandestine clearance of goods.
2. Rejection of request for cross-examination of witnesses.
3. Judicial direction to consider plea for cross-examination.

Analysis:
1. The case involved the appellants engaged in manufacturing TMT bars/CTD bars and rods, accused of evading duty by not accounting for raw material purchases. Search operations led to recovery of documents, resulting in a duty demand notice. The original authority confirmed duty demand, interest, and penalties. Appeals were filed, leading to remands and partial upholding of orders by various authorities, ultimately reaching the Tribunal again.

2. The Hon'ble High Court directed the Tribunal to address the specific plea of rejecting the request for cross-examination of witnesses. The appellant emphasized the necessity of cross-examination to reveal the truth and challenge the reliance on third-party statements. The Tribunal was urged to consider this crucial aspect highlighted by the High Court's judgment, emphasizing the principles of natural justice.

3. The High Court did not overturn the Tribunal's previous decision but instructed a review solely on the issue of cross-examination. The Tribunal, in its final order, remanded the matter to the adjudicating authority, directing a thorough consideration of the appellant's plea for cross-examination. The order emphasized granting a fair opportunity for the appellant to present their case and cross-examine witnesses in accordance with legal procedures, ensuring justice is served.

This detailed analysis highlights the progression of the case, the specific legal issue of cross-examination, and the judicial directives guiding the further proceedings to uphold principles of natural justice.