Natural justice in exemption disputes requires cross-examination and full opportunity to prove the imported machine's intended use.

Denial of cross-examination of experts and refusal to give a full opportunity to prove the machine's end use vitiated the adjudication for breach of natural justice. The dispute concerned whether an imported machine used for aseptic packaging qualified for an exemption intended for goods used in processing or packaging food articles. Because the adjudicating authority did not address the request to cross-examine the experts whose reports were relied on, and the appellants were not allowed to adduce evidence on intended use, the matter was remanded for fresh consideration after granting cross-examination and evidence, without any view on the merits.

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Issues: Whether the adjudication order was vitiated for denial of natural justice by not permitting cross-examination of experts and by not affording a proper opportunity to establish that the imported machine was entitled to the benefit of the exemption notification.

Analysis: The machine was found to be manufacturing aseptic packaging material, and the dispute turned on whether it satisfied the notification meant for goods used in processing or packaging of food articles. The appellants had specifically sought cross-examination of the experts whose reports were relied upon, and they were also required to meet the objection that the machine was not for the relevant end use. Since the adjudicating authority did not deal with the request for cross-examination and the appellants were not given a full opportunity to adduce evidence on the intended use of the machine, the order was held to suffer from breach of natural justice.

Conclusion: The matter was remanded to the adjudicating authority for fresh consideration after granting cross-examination and opportunity to produce evidence; no opinion was expressed on the merits.

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