Parvati Metals Vs Union of India (Rajasthan High Court)
The Rajasthan High Court heard an appeal challenging the Tribunal’s order dismissing the assessee’s appeal concerning the disallowance of CENVAT credit of Rs. 10,27,545. At the time of admission, the Court framed the question whether the statement of the Foreman could be used against the assessee without affording an opportunity of cross-examination while disallowing the CENVAT credit and whether the proprietor’s statement had been relied upon without considering the corroborative evidence available on record.
The assessee pointed out that during the adjudication proceedings it had specifically sought the cross-examination of Shri Naresh Singh, Foreman, whose statement was relied upon in the show cause notice. The adjudicating authority rejected the request on the ground that Shri Naresh Singh was an employee of the assessee and there was no reason to permit the assessee to cross-examine its own employee. The Tribunal observed that although a statement relied upon against an assessee ordinarily requires cross-examination if denial would cause prejudice, the proprietor had categorically admitted in his statements dated 07.12.2006 and 02.04.2008 that coils or plates below the specified thickness were never received in the factory and that these statements had not been retracted. The Tribunal further held that the Chartered Engineer’s certificate produced by the assessee did not certify receipt of such material during the relevant period.
