Commissioner of Customs (Preventive) Lucknow Vs Sarad Chand Agrahari (Allahabad High Court)
The Allahabad High Court set aside a CESTAT order that had invalidated customs adjudication proceedings on the ground that cross-examination under Section 138B of the Customs Act was not provided. The High Court held that cross-examination is not automatic or mandatory in every case; it becomes obligatory only when the noticee specifically requests it and the adjudicating authority relies on such statements. The Court clarified that principles of natural justice are not to be applied in a rigid or “strait-jacket” manner and require proof of real prejudice. Since the Tribunal failed to first determine whether any request for cross-examination was made by the noticee, its conclusion that proceedings were vitiated was legally unsustainable. Accordingly, the High Court quashed the Tribunal’s order and remanded the matter for de novo consideration, directing the Tribunal to examine the factual issue of whether a cross-examination request was actually made.
Counsel for Appellant(s) : Dheeraj Srivastava
Counsel for Respondent(s) : Jameel Ahmad
FULL TEXT OF THE JUDGMENT/ORDER OF ALLAHABAD HIGH COURT
1. Heard Shri Dheeraj Srivastava, learned counsel appearing for the appellants and Shri Jameel Ahmad, learned counsel appearing for the respondents.
2. The present custom appeals under Section 130 of the Customs Act, 1962 [hereinafter referred to as ‘the Act, 1962’] arises out of a common order dated April 24, 2025 passed by the Customs, Excise & Service Appellate Tribunal, Allahabad, Regional Bench – Court No. 1. Since the issues involved in all these appeals are similar in nature and the decision in Custom Appeal No. 19 of 2025 would have a bearing upon all the appeals, we are deciding the specific questions of law in C.U.S.A. No. 19 of 2025.
