Order date – 28 July 2022

Facts – 

• The Appellant, Vijay S. Poojary and ors., challenged the legality of confirmation of penalty at the reduced rate under Section 114(3) of the Customs Act, 1962
• They submitted that the said penalty was imposed by the Adjudicating authority without following the principle of natural justice against which they preferred the appeal before the Commissioner (Appeals) that yielded no fruitful result.
• The Appellants were denied of the opportunity of cross examination of some of the officials and witnesses, basing on whose statement penalty was imposed and confirmed by the Authorities below.
• Aggrieved the appeal has been filed.

Issue – 

• Whether the order passed by the authorities is in violation of principles of natural justice?

Order – 

• The Tribunal observed that it has become a settled principle of law that evidence not tested by the cross examination has no probative value and there should be opportunity provided to the opposite parties to cross examination the witnesses, relying on G. Balaji and Others Vs. Saravanasamy passed by the Hon'ble Madras High Court.
• Hence, all the appeals are allowed by way of remand to the Adjudicating Authority with direction to provide copies of relied upon documents and opportunity of cross examination of those witnesses, so as to complete a de novo proceeding and pass necessary order placing reliance only on the evidence of those witnesses who could be cross examined by the Appellant.
• Therefore, the order passed by the Commissioner (Appeals) in confirming the penalty under Section 114(3) at the reduce rate was set aside.