Natural justice in weighment disputes: failure to cross-examine witnesses and verify stock properly defeated the Revenue's challenge.

Procedural defects in weighment and stock verification rendered the alleged seizure unsustainable where the remand direction to cross-examine supporting witnesses was not complied with. The weighing slips were unsigned by the witnesses, and the record did not reliably establish that the stock check was properly conducted. On that basis, the adjudicating authority was found to have breached natural justice and failed to address the remand mandate, so the alleged stock discrepancy could not be safely used to sustain duty demand, confiscation, redemption fine or penalties. The Revenue accordingly showed no ground to interfere with the order under challenge, and the appeal was rejected.

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Issues: Whether the process of weighment and the consequent seizure of goods were vitiated by procedural defects, and whether the Revenue was entitled to disturb the order setting aside the duty demand, confiscation, redemption fine and penalties.

Analysis: The weighment was challenged on the ground that the witnesses whose affidavits supported the assessee were not cross-examined despite a specific remand direction. The weighing slips were not signed by the witnesses and the record did not satisfactorily establish that the stock verification was properly carried out. In these circumstances, the adjudicating authority failed to comply with the remand directions and the requirements of natural justice. The basis for the alleged stock discrepancy was therefore not reliably ascertained.

Conclusion: The process of weighment was held to be vitiated by procedural defects, and the Revenue failed to show any ground to interfere with the order under challenge. The appeal was rejected.

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