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Issues Involved:
1. Quasi-judicial nature of proceedings before the Collector of Central Excise and the right to cross-examine witnesses. 2. Validity of the order passed by the Central Board of Revenue. Issue-wise Detailed Analysis: 1. Quasi-judicial nature of proceedings before the Collector of Central Excise and the right to cross-examine witnesses: The petitioner, a tobacco merchant, contended that the proceedings before the Collector of Central Excise were quasi-judicial in nature and thus required adherence to the rules of natural justice, which include the right to cross-examine witnesses. The petitioner argued that the refusal to allow cross-examination of the Panchas who signed the Panchnamas violated these principles. The petitioner cited several precedents, including decisions from the Bombay High Court and the Madhya Pradesh High Court, which emphasized the necessity of cross-examination in quasi-judicial proceedings to ensure fairness. The respondents countered that the petitioner had signed the Panchnamas, thereby acknowledging the inspections. They argued that the petitioner had suppressed this fact and that the findings were based on warehouse records and the actual tobacco found during inspections. The Bombay High Court had previously dismissed a similar petition by the petitioner, noting the lack of good faith and the signing of Panchnamas by the petitioner. The court, while acknowledging the quasi-judicial nature of the proceedings, noted that the petitioner had signed most of the Panchnamas and had not demonstrated how the lack of cross-examination of the Panchas resulted in manifest injustice. The court concluded that there was insufficient material to prove that the refusal to allow cross-examination had prejudiced the petitioner's defense. Consequently, the court declined to interfere under Article 226 of the Constitution on this ground. 2. Validity of the order passed by the Central Board of Revenue: The petitioner challenged the order of the Central Board of Revenue, arguing that it lacked detailed reasons and thus could not be regarded as a judicial order. The court examined the brevity of the Board's order, which merely reduced the duty amount without providing a detailed rationale. The petitioner cited several judgments, including those from the Allahabad High Court, Andhra Pradesh High Court, and the Supreme Court, which emphasized that judicial orders must disclose reasons to reflect proper application of mind to the facts and law. The court found merit in the petitioner's argument, noting that the order of the Central Board of Revenue did not provide sufficient reasons for its decision. The court referred to the Supreme Court's decision in Harinagar Sugar Mills, which held that appellate orders must contain reasons to be subject to judicial scrutiny under Article 136 of the Constitution. In conclusion, the court allowed the petition to the extent of quashing the order of the Central Board of Revenue. The court directed the Board to rehear and dispose of the appeal in accordance with the law, ensuring that proper reasons are provided for its decision. The court made no order as to costs.
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