2017 (12) TMI 439 - AT - Central Excise

Clandestine removal - cross-examination of witnesses (the basis of allegation) denied - natural justice - Held that - cross examination of the witnesses sought by the appellant makes it necessary and relevance for effective defense in view of the judgment of the Hon ble Supreme Court in Andaman Timber Industries case 2015 (10) TMI 442 - SUPREME COURT - the cross examination of the witnesses requested by the appellants before the authorities below be allowed and thereafter, the issues be decided afresh on merit - appeal allowed by way of remand.

Summary

Issues: Allegation of clandestine removal of finished goods without payment of duty, denial of cross-examination of witnesses, violation of principles of natural justice.

In this case, the Appeals were filed against an Order-in-Appeal passed by the Commissioner of Central Excise (Appeals), Daman, regarding the allegation of clandestine removal of finished goods without payment of duty. The appellant's factory was visited by Central Excise Officers who found excess stock of some finished goods and shortage of others. A demand notice was issued, and after adjudication, the demand was confirmed with interest, penalty, and confiscation of goods. The appellant argued for cross-examination of witnesses, which was denied, leading to a violation of principles of natural justice. The appellant relied on the judgment of the Hon'ble Supreme Court in the case of Andaman Timber Industries. The Tribunal found the denial of cross-examination to be a violation of natural justice and ordered that cross-examination of witnesses be allowed, and the issues be decided afresh on merit, granting a reasonable opportunity of hearing to the appellants. The impugned order was set aside, and the appeals were allowed by way of remand to the adjudicating authority for further proceedings.