Gujarat HC directs matter back to GST Authority to cross-examine witnesses whose statements have been recorded but not relied upon [Read Order]

The Gujarat High Court directs matters back to the GST Authority to cross examine witnesses whose statements have been recorded.

The petitioner, Rajputana Stainless Ltd. challenged the order issued by the Commissioner of Central GST and Service Tax Act whereby the request for cross examination of the witnesses whose statements have been recorded but not relied upon is questioned. It is on the ground that it is not tenable, no genuine reason for asking for cross examination that this denial had come. The petitioner’s grievance is that there is no finding given by the respondent no. 2 as to why he has not found such a request sustainable. This being a non speaking order, it is in clear violation of the principle of natural justice.

The division bench of Justice Sonia Gokani and Justice Hemant M. Prachchhak held that while holding in principle that it is the right of the parties to make a request for the defence witnesses of even those witnesses who have been dropped out by the Revenue, the request, in the instant case, was not of examining them as defence witnesses till the learned counsel stepped in, but, of cross-examining them without examining them as defence witnesses and that simply is impermissible and hence, the order impugned cannot be interfered with.

“The Court needed to take note of the fact that the order-in-original came to be passed despite the specific assurance given by the then learned Standing Counsel. It is also reflected in the order-in-original. We had directed the affidavit to be filed however, that has not come on record. We have chosen not to stretch this issue, but, the then learned Standing Counsel was expected to guide the officer concerned dispassionately and as otherwise needed as Court Officer. The order-in-original is passed in complete disregard to the adjournment sought by the respondent and assurance given to the Court even while urgency was made,” the court said.

“Remand the matter back to the authority who passed the order-in-original to hear it from the stage where it was when they approached this Court. Let the petitioner cooperate. The matter to be completed in twelve (12) weeks’ time from the date of receipt of copy of this order,” the court said.

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