Cross-examination in customs adjudication is a natural justice requirement when witness statements are relied on as evidence.

Statements and technical opinions relied upon in customs adjudication cannot be used against a noticee unless the concerned witnesses are offered for cross-examination, as section 138B of the Customs Act treats cross-examination as part of natural justice when such material is relied on as evidence. Denial merely on the assumption that no new material would emerge, or that the process would delay adjudication, was unjustified. The refusal to permit cross-examination of the named witnesses was set aside.

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Issues: Whether cross-examination of the relied-upon witnesses, other than the investigating officer, was required to be granted in the adjudication proceedings under the Customs Act, 1962.

Analysis: The Tribunal held that statements and technical opinions relied upon in the show cause notice could not be used against the appellant without permitting cross-examination of the concerned witnesses. It held that denial of cross-examination merely on the assumption that nothing new would emerge, or that it would delay adjudication, was not justified. Referring to section 138B of the Customs Act, 1962, the Tribunal treated cross-examination as a vital component of natural justice where the material is sought to be used as evidence. The request for cross-examination of the investigating officer was not pursued.

Conclusion: Cross-examination of Shri Ashok Prasad and Shri Bipin Kumar had to be granted, and the refusal to allow it was set aside.

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