Court rules on cross-examination of informants in Central Excise cases: Department's discretion clarified

The court dismissed the petition seeking a writ of mandamus for cross-examination of informants in Central Excise cases. It clarified that while informant statements can be relied upon by the Department, the assessee must be given an opportunity for cross-examination. The court held that the Department has discretion to choose which informant statements to rely on and that the assessee cannot demand cross-examination of all informants. If the assessee believes there has been a violation of natural justice or legal principles, they can challenge the order through the appellate authority.

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Issues:
1. Petition seeking writ of mandamus for cross-examination of informants.
2. Legal position on reliance upon informant statements in Central Excise cases.
3. Requirement of providing opportunity for cross-examination.
4. Department's discretion in relying on informant evidence.
5. Assessee's right to challenge orders on grounds of natural justice or legal principles.

Analysis:
The judgment addresses a petition seeking a writ of mandamus to direct the Commissioner of Central Excise to allow cross-examination of informants and to restrain further action on a show cause notice without calling witnesses for cross-examination. The Court acknowledges the settled legal position that informant statements cannot be relied upon without providing the assessee an opportunity for cross-examination. It clarifies that the requirement is only to afford this opportunity and nothing more. The Court opines that the Department can choose to rely on evidence from a subset of informants as necessary, and the assessee cannot demand cross-examination of all informants, especially if their statements may not be relied upon for the demand. The judgment emphasizes that if the assessee believes there has been a violation of natural justice or legal principles, they can challenge the order by appealing to the appellate authority. Ultimately, the writ petition is disposed of with these observations.

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