Natural justice and Section 138B compliance questioned over witness statements without cross-examination, with verification directed.

Reliance on witness statements without cross-examination raised a natural justice objection, and compliance with Section 138B of the Customs Act, 1962 remained in doubt because the service position and present availability of the witnesses were unclear. The HC directed the customs authority to resend notices to the witnesses by acknowledgement due and to conduct physical verification through an inspector, with a report to be filed on the next date.

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Issues: Whether the adjudication order could be sustained when it relied on statements of witnesses who were not made available for cross-examination, and whether the respondents had adequately complied with the requirements of Section 138B of the Customs Act, 1962 in attempting to secure those witnesses.

Analysis: The objection raised was that reliance had been placed on witness statements without permitting cross-examination, thereby implicating principles of natural justice. The Court noted the respondent authority's assertion that notices had been sent under Section 138B of the Customs Act, 1962, but found the factual position regarding service and the present existence of the witnesses uncertain, especially in relation to the postal endorsements received. To ascertain the factual truth, the Court directed the customs authority to resend the order to the witnesses at their addresses by acknowledgement due and to depute an inspector for physical verification, with a report to be filed on the next date.

Outcome: Further steps were directed for verification of the witnesses' availability and service of notice, and the matter was listed for a later date for filing of the verification materials.

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