2022 (3) TMI 336 - HC - Customs

Violation of principle natural justice - cross-examination of witnesses upon whose statements the respondent-adjudicating authority has relied against the petitioner. is denied upon - HELD THAT - In this case, admitted position is that, which appears from the impugned order of adjudicated dated December 7, 2021, the adjudicating authority has relied on the statements of the witnesses in question and that the petitioner was denied to cross-examine those witnesses. Relying upon the decision of the Supreme Court in ANDAMAN TIMBER INDUSTRIES VERSUS COMMISSIONER OF CENTRAL EXCISE, KOLKATA-II 2015 (10) TMI 442 - SUPREME COURT , this writ petition is disposed of by setting aside the impugned order dated December 7, 2021 to the extent of relying on the statements of the witnesses in question wherein the petitioner was denied to cross-examine those witnesses, and the adjudicating authority shall pass a fresh order in accordance with law as a consequence of this order. It is clarified that if the respondent-adjudicating authority wants to rely on the statements of the witnesses in question, in that event he will have to afford an opportunity to the petitioner to cross-examine those witnesses.

Summary

Issues: Violation of principles of natural justice by denying the petitioner the right to cross-examine witnesses and the requirement to furnish questions in advance for cross-examination.

In this judgment by the Calcutta High Court, the petitioner challenged the adjudication proceedings on the grounds of not being allowed to cross-examine witnesses, which violated the principles of natural justice. The court emphasized the fundamental right of a person to cross-examine witnesses if their statements are being relied upon by the adjudicating authority, as it can have a prejudicial or adverse effect on the person. The court highlighted that the petitioner was aggrieved by the notice requiring them to furnish questions in advance for cross-examination, which is against the basic principle of fair adjudication. The court referred to a Supreme Court decision in the case of Andaman Timber Industries, emphasizing the importance of allowing cross-examination to ensure a fair process and to prevent any violation of natural justice.

The court noted that the adjudicating authority in this case had relied on the statements of witnesses without allowing the petitioner to cross-examine them, which was a serious flaw and amounted to a violation of natural justice. The court quoted the Supreme Court decision to emphasize that denying the opportunity for cross-examination when witness statements are the basis of an order renders the order null and void. The court pointed out that despite the petitioner's request for cross-examination, the adjudicating authority did not grant this opportunity, which was a clear violation of principles of natural justice. The court found the rejection of the plea for cross-examination by the Tribunal to be unjustifiable, as it is essential to allow cross-examination to ensure a fair and transparent adjudication process.

Based on the submissions and the cited Supreme Court decision, the Calcutta High Court disposed of the writ petition by setting aside the impugned order that relied on witness statements without allowing cross-examination. The court directed the adjudicating authority to pass a fresh order in accordance with the law, emphasizing that if witness statements are to be relied upon in the future, the petitioner must be given the opportunity to cross-examine them. This ruling ensures that the principles of natural justice are upheld, and the right to a fair hearing is protected in adjudication proceedings.