Tribunal factual findings on lack of cross-examination do not raise a substantial question of law absent perversity.

In an appeal under Section 35G of the Central Excise Act, the High Court declined to interfere with the Tribunal's finding that the demand and penalties were unsustainable because the witnesses whose statements were relied on had not been cross-examined. The Court treated the Tribunal's view as a factual finding by the fact-finding authority and held that a different appraisal of the evidence could not justify interference absent perversity or a substantial question of law. The Revenue's challenge therefore failed, and the Tribunal's relief to the assessee remained undisturbed.

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Issues: (i) Whether, in an appeal under Section 35G of the Central Excise Act, 1944, the High Court could interfere with the Tribunal's factual findings that the demand and penalty were not sustainable in the absence of cross-examination of witnesses.

Analysis: The Tribunal's conclusion rested on its appreciation of evidence and on the finding that the witnesses whose statements were relied upon had not been subjected to cross-examination. The High Court held that this was a finding of fact by the final fact-finding authority. In an appeal under Section 35G, such factual findings could not be disturbed merely because the appellant proposed a different view of the evidence. Since no perversity or substantial question of law was shown, the reliance on statements and supporting material did not justify interference with the Tribunal's view.

Conclusion: The issue was decided against the appellant and in favour of the Revenue; no substantial question of law arose.

Final Conclusion: The appeals failed and the Tribunal's relief to the assessee remained undisturbed, with the departmental demand and penalties not revived by the High Court.

Ratio Decidendi: A factual finding of the Tribunal, especially one based on appreciation of evidence and the absence of cross-examination, does not give rise to a substantial question of law under Section 35G of the Central Excise Act, 1944 unless it is shown to be perverse.

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