1962 (6) TMI 1 - HC - Customs

Summary

Issues:
1. Violation of principles of natural justice in adjudication proceedings.
2. Reliance on evidence collected behind the back of the petitioner.
3. Burden of proof on the Department regarding goods brought into India without proper permit.

Analysis:

Issue 1: Violation of principles of natural justice in adjudication proceedings
The petitioner contended that the evidence of third parties, obtained behind his back, should not be used unless produced for cross-examination. The Collector dismissed this contention, stating that no extra evidence was derived beyond the petitioner's bills and vouchers. The Court disagreed, emphasizing the burden on the Department to prove goods were obtained without a permit. The Court highlighted the necessity for the petitioner to test materials relied upon, emphasizing the violation of natural justice principles in not allowing cross-examination.

Issue 2: Reliance on evidence collected behind the back of the petitioner
The Court criticized the Department for relying on evidence gathered secretly from sellers without allowing the petitioner to test its accuracy through cross-examination. It stressed that the petitioner did not request such inquiries, and the Department's approach did not adhere to natural justice principles. The Court held that the petitioner should have been given an opportunity to challenge the evidence against him.

Issue 3: Burden of proof on the Department regarding goods brought into India without proper permit
The Court highlighted that the burden of proof lies on the Department to show goods were imported without a permit. It rejected the notion that failure to prove a specific purchase automatically implies a breach of import rules. The Court likened the petitioner's position to that of an accused in a criminal trial, emphasizing the need for the Department to demonstrate the lack of necessary permits for imported goods.

The judgment in Civil Rule No. 176/62 and 182/62 highlighted the importance of upholding natural justice principles in adjudication proceedings, criticizing the Department's reliance on evidence obtained without the petitioner's opportunity for cross-examination. The burden of proof regarding imported goods without proper permits was emphasized, underscoring the necessity for fair procedures and the right to challenge evidence. Ultimately, the Court quashed the Collector's orders in both cases, citing violations of natural justice and the burden of proof requirements on the Department.