Statements cannot be relied without Cross-examination of witnesses: CESTAT sets aside penalty on Import of printing papers [Read Order]

The Ahmedabad bench of Customs, Excise and Service Tax Appellate Tribunal ( CESTAT ) quashed customs duty demand on printing papers and noted that the statements cannot be relied without cross-examination of witnesses.

A case was booked against M/s. Sandeep Enterprises regarding mis-declaration and attempt to smuggle cargo. DRI, examined wherein importation of 1300 cartons of ’75 GSM Printing Papers ( Un-coated ) of size 210 x 297 MMX 75GSM’ was declared. After de-stuffing of the container, it was revealed that it contained 800 cartons of printing papers having description “Nine Blue Edge Series Multipurpose Photo copy paper A4 size/80GSM 2500 sheets High Bright Paper”.

The counsel for the appellant pointed out that Tejas N. Mehta used to calculate the duty debit and used to arrange license/scripts for duty debit. He also stated that sometimes Babu Ramji Bera, the importer also used to arrange license/scripts. On the strength of above evidence, Tejas N. Mehta was linked to the current imports, wherein there was mis-declaration and an attempted to smuggle. The Counsel for the appellant also pointed out that no cross-examination was permitted to them.

The counsel argued that no reasons have been given for denying cross-examination and that there is no material other than statement in the impugned order. It was asserted by the Counsel that the bill of entry was filed by the importer who has appeared before the investigating authorities.

A Two-Member Bench comprising Ramesh Nair, Judicial Member and Raju, Technical Member observed that “It is seen that prima facie no significant evidence has been gathered from the searches made in premises of the appellants. From the above said all evidences, it is apparent that the SCN is largely based on the statements recorded during investigations. It is apparent that the statements cannot be relied without cross-examination of the witnesses.”

“In this background, it will be necessary for the authorities to grant cross examination of all the witnesses before relying on their statements. The current order which has been relying very heavily on all these statements and that too without granting cross-examination cannot therefore be sustained. The order is therefore set aside and matter remanded to the original adjudicating authority to decide the issue a fresh after giving an opportunity to cross-examine the person whose statement have been relied. The appeals are allowed by way of remand” the Tribunal concluded.

To Read the full text of the Order CLICK HERE

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