Paper Trade Links Vs Union of India (Madhya Pradesh High Court)
Summary:
1. The petitioner challenged a demand order citing denial of the right to cross-examine witnesses whose statements were relied upon in the order.
2. The adjudicating authority rejected the cross-examination request, stating:
- It would delay proceedings.
- The statements were made with an understanding of Section 70 of the CGST Act and appeared correct.
3. The Court held:
- Violation of principles of natural justice (like denial of cross-examination) renders an adjudication order invalid.
- In such cases, a writ petition is maintainable even if an alternative appellate remedy exists.
4. The Court referred to the Supreme Court judgment in Ayaaubkhan Noorkhan Pathan v. State of Maharashtra (AIR 2010 SC 58), which upholds the right to cross-examination as integral to natural justice.
5. The impugned order was set aside, and the matter remanded to the adjudicating authority to resume proceedings from the stage of cross-examination.
FULL TEXT OF THE JUDGMENT/ORDER OF MADHYA PRADESH HIGH COURT
The petitioner has filed the present petition challenging the order dated 16.01.2023 passed by respondent No.3 whereby the tax liability as well as penalty has been imposed under the provisions of CGST Act, inter alia on the ground that the petitioner was not given any opportunity of cross-examination to the witnesses whose statements were relied in CGST Act.
