Cross-examination rights in excise proceedings require a fair opportunity to meet disputed accounting and duty-payment allegations.

A party's request to cross-examine the representatives of two concerns was material where the defence depended on showing that the goods were entered in their books and central excise duty had been paid. The record indicated that this request was specifically raised in response to the show cause notice, but it was not effectively considered. As the opportunity to test the alleged lacunae was necessary for a fair defence, the matter required reconsideration by the assessing authority. The impugned orders were therefore set aside and the dispute was restored for fresh adjudication.

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Issues: Whether the assessee's request to cross-examine the representatives of the two concerns, made to establish that the goods had been accounted for in their books and that central excise duty had been paid, was wrongly overlooked, warranting interference and a fresh adjudication.

Analysis: The record showed that the assessee had specifically sought cross-examination in the reply to the show cause notice. That request was material to the defence on the accounting of the goods and payment of duty. In view of the difference of opinion in the Tribunal and the finding that the assessee should have had an opportunity to meet the alleged lacunae, the matter required reconsideration by the assessing authority.

Conclusion: The denial of an effective opportunity to cross-examine justified setting aside the impugned orders and restoring the matter for adjudication afresh.

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