2021 (4) TMI 229 - HC - Customs

Court Orders Cross-Examination Before Assessment Finalization | Principles of Natural Justice

M/s. Souparnika Shipping Services Versus The Joint Commissioner of Customs, The Commissioner of Customs (Appeals)

The High Court held that the respondent must allow cross-examination before finalizing an assessment, as per principles of natural justice. The court set ... Principles of Natural Justice - opportunity of cross examination of a person upon whom reliance is placed by the Officer in finalising the impugned assessment - HELD THAT:- The appellate authority has passed an order on 10.03.2021 allowing the appeal of the petitioner to the effect that the principles of natural justice will have to be complied with and the Assessing Authority should grant an opportunity of cross examination to the petitioner prior to finalization of assessment. A copy of this order is placed on file. The impugned order has no legs to stand, since it has, admittedly, been passed without affording an opportunity of cross examination to the petitioner and the same is set aside - Let the petitioner be afforded an opportunity of cross examination, heard in full and an order of assessment be passed denovo within a period of six (6) weeks from today - Petition allowed. Issues:1. Whether the respondent must provide an opportunity for cross-examination in the finalizing of an assessment.Analysis:The High Court considered the legal issue of whether the respondent was obligated to allow cross-examination of a person relied upon in finalizing an assessment. The court directed the respondents to produce case-law on this matter for consideration. The petitioner had requested cross-examination, which was rejected by the respondent authority prior to the impugned order. An appeal was filed, and the Commissioner of Customs (Appeals) was directed to dispose of the appeal within four weeks after hearing the petitioner and considering relevant judicial precedents.The court noted that the appellate authority, in response to the court's order, had allowed the petitioner's appeal on the grounds that principles of natural justice required granting an opportunity for cross-examination before finalizing the assessment. As a result, the court found that the impugned order, passed without affording the petitioner an opportunity for cross-examination, was invalid and set it aside. The petitioner was granted the opportunity for cross-examination, a full hearing, and instructed that a new assessment order be passed within six weeks.In conclusion, the court allowed the writ petition, directing the respondent to provide the petitioner with a chance for cross-examination and to finalize the assessment order within the specified timeframe. The court closed the connected Miscellaneous Petition without imposing any costs.