Natural justice breached by denying cross-examination of relied-upon witnesses; adjudication set aside and remanded.

The adjudication order was found defective for breach of natural justice because the assessee was allowed to cross-examine only one witness while requests to cross-examine the remaining witnesses, whose statements were relied upon, were ed without proper reasons. Reliance on those statements without granting a fair opportunity to test them through cross-examination vitiated the proceedings. The order was set aside and the matter was remanded for fresh decision after giving the assessee an opportunity to cross-examine the concerned witnesses.

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Issues: Whether the adjudication order was vitiated for denial of the principles of natural justice by refusing cross-examination of the witnesses whose statements were relied upon.

Analysis: The demand and penalties were challenged on the ground that the appellants were permitted to cross-examine only one witness, while the request to cross-examine the remaining witnesses was not accepted. Since the Commissioner relied upon those statements and no proper reason was recorded for rejecting the request, the adjudication was found to be defective for breach of natural justice.

Conclusion: The adjudication order was set aside and the matter was remanded for fresh decision after granting an opportunity to cross-examine the concerned witnesses.

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