Annai Poly Packs Vs Deputy Director (Madras High Court)
Madras High Court held that there is no merits in challenge to orders on the ground of no cross-examination since the statements are merely intended for corroboration of independent evidence.
Facts- In these Writ Petitions, the petitioners have challenged the impugned Order-in-Original dated 22.12.2017 passed by the fifth respondent Commissioner of CGST & Central Excise.
Petitioner mainly contested that despite repeated requests for cross-examination, the petitioners were not allowed to cross-examine specified 7 persons.
Conclusion- Held that the necessity for cross-examining the customer of the respective petitioner is not required as in a quasi judicial proceedings before the respondents, the respondents are merely governed only by the principles of preponderance of probability and are not governed by strict rules of evidence. Unless, the statements of the persons who have given statements against the petitioners are solely relied for confirming the demand, question of cross-examination of any of the persons who have given statements against the petitioners does not arises only where demand is solely based on such statement, the Department has to allow cross-examination or in the alternative eschew such statements.
The impugned orders prima facie indicate that the respondents have merely relied on the statement of buyers of the respective petitioners. They have merely corroborated the records maintained by the respective petitioners that the buyers have purchased PP bags from the respective petitioners. Therefore, there is no merits in the challenge to the impugned orders on the ground that no cross-examination was allowed.
