BALAJI ENTERPRISE Vs. UNION OF INDIA

JUDGEMENT

(1.) Petitioner has challenged an order dated 23/24.01.2018 passed by the Adjudicating Authority, rejecting the petitioner's request for crossexamination of the witnesses cited and relied upon by the departmental authority in support of show cause notice dated 01.01.2015.

(2.) Briefly stated, the facts are that the petitioner no.1 is a partnership firm. Petitioner No.2 is the partner of the firm. The petitioner firm is engaged in the manufacturing of Stainless Steel pipes having its manufacturing unit at Kalol. The Excise Authorities had issued a show-cause notice dated 01.01.2015 alleging large scale violation of the legal provisions for evasion of duty. This lengthy show-cause notice relies on several statements of witnesses recorded by the department during the course of investigation. The petitioner during the course of adjudication, applied to the Adjudicating Authority for cross-examination of these witnesses. Such request came to be dismissed by the authority by the impugned order. He referred to various decisions of the Tribunal and observed that cross-examination during the show cause notice proceedings is not a matter of right. His main grounds for not granting cross-examination was that the statements were given by the witnesses voluntarily. That such statements are not retracted. That the statements were supported by documentary evidences and such statements were also perused by the partner of the firm. It was also suggested that no evidence collected behind the back of the firm was used.

(3.) Having heard learned counsel for the parties and having perused the documents on record, we feel that the authority has committed a serious error in not granting cross-examination of witnesses. At an interim stage, when the adjudication is still going on, we would be loth to interfere. However, when fundamental flaw of breach of basic principles of natural justice is cited, we are left with no choice but to examine the issue further.