Cross-examination of witnesses is mandatory before relying on statements in customs adjudication; unsupported order was set aside and remanded.

Witness statements used in customs adjudication cannot be relied on unless the assessee is given a proper opportunity to examine or cross-examine the witnesses under Section 138(B) of the Customs Act, 1962. The text treats the corresponding principle under Section 9D of the Central Excise Act, 1944 as pari materia. Because no such opportunity was afforded in respect of six witnesses, the statements were held inadmissible for reliance in the adjudication. The adjudication order was therefore set aside and the matter remanded for fresh decision after granting due opportunity to the appellants.

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Issues: Whether statements of witnesses relied upon in the adjudication could be used without granting the appellants an opportunity to cross-examine them under Section 138(B) of the Customs Act, 1962, and whether the matter required remand for fresh adjudication.

Analysis: The statements of six persons had been relied upon in the impugned order, but the adjudicating authority had not afforded examination or cross-examination in terms of Section 138(B) of the Customs Act, 1962. The rule requiring such opportunity was held to apply to the present facts, and the corresponding principle under Section 9D of the Central Excise Act, 1944 was treated as pari materia.

Conclusion: No reliance could be placed on the statements without granting the appellants an opportunity of cross-examination. The order was set aside and the matter was remanded for fresh adjudication after giving due opportunity to the appellants.

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