2022 (8) TMI 768 - AT - Customs

Violation of principles of natural justice - request of cross-examination of the appellant was not considered by the Adjudicating Authority in terms of Section 138 B of Customs Act, 1962 - Valuation of imported goods - enhancement of value - HELD THAT - The lower authorities have not considered the request of the appellant for cross-examination. Though the lower authorities have relied upon ample evidences for deciding the case but the request of cross-examination of also ought to have been considered as mandated under section 138 B. From the statutory provision of section 138 B, it is not the option for the Adjudicating Authority to allow or not to allow the cross- examination, if the appellant has requested for cross- examination, it is in the interest of principle of natural justice the Adjudicating Authority is duty bound to conduct the cross-examination of the witnesses - since the lower authorities have relied upon the Panchnama dated 12.09.2017 and under which the various documents were recovered and those documents were used as evidence against the appellant, it is necessary that the cross-examination of Panch witnesses should be allowed. The entire matter needs to be re-considered after allowing the cross- examination of the witnesses as requested by the appellant - Appeal allowed by way of remand.

Summary

Issues:
- Appeal against order-in-Original and Order-In-Appeal enhancing value of imported goods and confirming duty demand
- Allegation of failure to consider request for cross-examination violating Principle of Natural Justice

Analysis:
The appeal pertains to challenging an order enhancing the value of imported goods and confirming a duty demand, along with penalties and fines imposed by the Commissioner of Customs, Bengaluru. The appellants contested the decision before the Tribunal, alleging a violation of the Principle of Natural Justice due to the failure to consider their request for cross-examination. The appellant's representative, a Chartered Accountant, made detailed submissions emphasizing the importance of cross-examination in ensuring fair proceedings. The Adjudicating Authority, in this case, did not allow the cross-examination requested by the appellant, despite the reliance on various evidences and statements against them. The Tribunal highlighted the significance of cross-examination in the interest of justice, citing relevant legal precedents emphasizing the right to cross-examine witnesses.

Upon careful consideration, the Tribunal found that the lower authorities had not appropriately addressed the appellant's request for cross-examination, which is a crucial aspect of ensuring a fair and just adjudication process. The Tribunal referred to Section 138 B of the Customs Act, 1962, which mandates the allowance of cross-examination when requested by the appellant. Not allowing cross-examination in such circumstances would be a violation of the principle of natural justice. Therefore, the Tribunal set aside the impugned orders and remanded the case back to the Adjudicating Authority for a fresh decision, emphasizing the need to conduct cross-examination as requested by the appellant. The Tribunal's decision aimed at upholding the principles of natural justice and ensuring a fair hearing for the appellants.