Demand of Customs Duty confirmed without giving opportunity to Cross-Examine Key Witness to Assessee: CESTAT Allows Re-Hearing [Read Order]

The Chandigarh bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) allowed re-hearing for the confirmation of the demand of customs duty without allowing cross-examining the key witness to the assessee. 

Labels Limited, the appellant assessee was engaged in the manufacture of mild steel and non-alloy steel, ingots, and other articles of iron and steel. The assessee appealed against the order passed by the Commissioner for confirming the demand of Customs duty and imposition of penalty. 

Shreya Yadav, the counsel for the assessee contended that if the demand was confirmed based on the statements of any particular person, the assessee should be allowed an opportunity to cross-examine the person making such statements. 

Further submitted that the adjudicating authority had violated the provisions of Section 9D of the Central Excise Act, 1944 as no opportunity to cross-examine the witnesses was provided. 

Narinder Singh, the counsel for the department contended that the assessee are repeat offenders and that the department had made a strong case against the assessee and the commissions and omissions of the assessee are more than evidenced by the statements. 

The Bench observed that for the interest of justice, the case should be remanded back to the adjudicating authority to adjudicate the case afresh after allowing the assessee to cross-examine the key witnesses. 

The two-member bench comprising S.S. Garg (Judicial) and Anjani Kumar (Technical) quashed the penalty imposed on the assessee and remanded back the matter to the adjudicating authority to decide after giving sufficient opportunity to cross-examine the key witnesses to the assessee while allowing the appeal filed by the assessee. 

To Read the full text of the Order CLICK HERE

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