2001 (2) TMI 175 - AT - Central Excise

Summary

Issues involved: Violation of principles of natural justice, denial of right to retest under Rule 56 of Central Excise Rules, 1944.

Summary:
The appeals arose from an Order-in-Original passed by the Commissioner of Central Excise, Meerut-I, challenged on grounds of violation of natural justice principles. The appellants argued that they were not provided with copies of relied-upon documents and were denied the right to cross-examine witnesses. The Commissioner's order did not mention the availability of documents for photocopying by the party, leading to a lack of clarity on the process followed. The appellants' defense replies highlighted the lack of document access and witness cross-examination, disputing the Commissioner's assertion that they had filed their defense statements.

A schedule of witnesses for cross-examination was submitted, but none were summoned by the Commissioner, who deemed the demand for cross-examination unnecessary. The Commissioner relied on witness statements not subject to cross-examination, contrary to established legal principles. The Commissioner failed to address the noticees' concerns regarding document availability and witness summoning before passing the impugned order. The statutory right to retest under Rule 56(4) was also denied to the noticees, further contributing to the violation of natural justice.

The Tribunal found the impugned order to be in violation of natural justice principles and set it aside, remitting the matter for fresh adjudication. The Commissioner was directed to provide the noticees with copies of all relied-upon documents and allow cross-examination of witnesses. The noticees were given the opportunity to file written objections and request retesting of goods at the Central Revenue Control Laboratory. The Commissioner was instructed to adjudicate the issue de novo based on the noticees' defense, ensuring expeditious resolution of the matter.

In conclusion, the appeals were disposed of by overturning the impugned order and remanding the issue for reevaluation in compliance with principles of natural justice.