2020 (3) TMI 359 - AT - Customs

Tribunal emphasizes fair process in customs appeal, sets aside denial of cross-examination under .

M/s Ganpat Rai Shri Ram & Company Versus CC (Port), Kolkata

M/s Ganpat Rai Shri Ram & Company Versus CC (Port), Kolkata - 2020 (371) E.L.T. 601 (Tri. - Kolkata) Issues:- Denial of cross-examination by the Commissioner of Customs- Maintainability of the appeal against the denial of cross-examinationAnalysis:Issue 1: Denial of Cross-Examination by the Commissioner of CustomsThe appellant appealed against a letter denying cross-examination issued by the Deputy Commissioner of Customs. The appellant imported goods declared as 100% Polyester Bed Cover/Quilt Cover but was suspected of misdeclaration. The Directorate of Revenue Intelligence conducted inquiries and sent the goods for testing. Based on the test reports, a show-cause notice was issued proposing reclassification and demanding differential duty. The appellant sought cross-examination of the testing organizations, which was denied. The appellant argued that denial of cross-examination violated principles of natural justice. The Tribunal noted that the entire case was based on the test reports and allowing cross-examination was crucial for a fair adjudication. The Tribunal found that not allowing cross-examination could lead to an unjust decision. The appellant was advised to submit a detailed written reply to the show-cause notice.Issue 2: Maintainability of the AppealThe Revenue argued that the appeal was not maintainable as it was against a letter of the Deputy Commissioner, not a final decision. They contended that the denial of cross-examination was not appealable at this stage. However, the Tribunal found that since the case heavily relied on the test reports, the denial of cross-examination was a significant decision falling under Section 129A of the Customs Act, making the appeal maintainable. Citing previous judgments, the Tribunal determined that the denial of cross-examination was a crucial aspect of the adjudication process. Therefore, the Tribunal allowed the appeal, setting aside the denial of cross-examination and instructing the Commissioner to permit the cross-examination of the testing officer.In conclusion, the Tribunal found in favor of the appellant, allowing the appeal against the denial of cross-examination. The decision highlighted the importance of allowing cross-examination, especially when the case heavily relied on test reports. The Tribunal emphasized the need for a fair adjudication process and advised the appellant to submit a detailed written reply to the show-cause notice.