Denial of proper hearing and cross-examination can invalidate adjudication, requiring restoration for fresh consideration.

An adjudication order may be vitiated where the assessee is denied a proper hearing and the chance to cross-examine witnesses whose statements are relied upon. The record showed that an adjournment request had been made before the hearing date, the matter was taken up in the absence of the regular advocate, and cross-examination had been sought in the reply to the show cause notice. Because oral evidence was material to the dispute, the hearing before the adjudicating authority was treated as inadequate and the matter was restored for a fresh adjudication with proper opportunity to lead evidence and be heard.

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Issues: Whether the adjudication order was vitiated for want of proper hearing and denial of opportunity to cross-examine witnesses, warranting remand.

Analysis: The record showed that an adjournment application had already been made before the hearing date and that the matter was taken up in the absence of the regular advocate. The reply to the show cause notice had also sought cross-examination of witnesses whose statements were relied upon by the department. In these circumstances, and in view of the importance of oral evidence to the dispute, the hearing granted before the adjudicating authority was not treated as adequate. The appropriate course was to restore the matter so that the parties could lead evidence and be heard properly at the adjudication stage.

Conclusion: The matter was remanded to the adjudicating authority for grant of personal hearing and disposal according to law, with the appellants directed to remain present on the fixed date.

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