Sanjeev Maggu Vs Additional Commissioner of Customs (Delhi High Court)
The Delhi High Court examined the scope of the right to cross-examination in customs adjudication proceedings while deciding a writ petition challenging a show cause notice dated 5 July 2018 and an order dated 7 May 2019 passed by the adjudicating authority. The central issue before the Court was whether the petitioner was entitled, as a matter of right, to cross-examine persons whose statements were relied upon by the Directorate of Revenue Intelligence (DRI), including customs officials.
The show cause notice alleged large-scale evasion of customs duty through diversion of goods stored in customs bonded warehouses into the domestic market, along with forgery and fabrication of documents to falsely show re-export or re-warehousing of goods. The petitioner and another individual were alleged to have created fictitious firms, obtained Import Export Codes, and used customs brokers to fabricate documents. Searches conducted by DRI officials allegedly revealed diversion of foreign liquor from public bonded warehouses, causing substantial loss to the exchequer.
The petitioner sought cross-examination of multiple individuals, including acquaintances whose statements were recorded, customs brokers, staff of bonded warehouses, and several customs department officials. The adjudicating authority rejected the request, leading to the present writ petition.
