Natural justice in adjudication requires opportunity to lead defence evidence, with remand ordered after denial of witnesses.

Denial of an opportunity to produce defence witnesses vitiated the adjudication because the appellants were prevented from supporting their defence, contrary to natural justice. The request was rejected merely on the basis that the witnesses' evidence had not been relied upon in the show cause notice, but that did not justify refusing defence evidence. The proper course was to set aside the order and remand the matter for fresh adjudication after allowing the appellants to adduce evidence, with corresponding liberty to the Revenue to cross-examine the witnesses in accordance with law.

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Issues: Whether the adjudication order was vitiated for denial of opportunity to produce defence witnesses and whether the matter should be remanded.

Analysis: The request to produce witnesses in defence had been declined on the ground that their evidence was not relied upon in the show cause notice. Since the appellants were prevented from leading evidence in support of their defence, the adjudication stood in breach of the principles of natural justice. In such circumstances, the proper course was to set aside the order and restore the matter for fresh adjudication after giving the appellants an opportunity to adduce defence evidence, with corresponding liberty to the Revenue to cross-examine such witnesses in accordance with law.

Conclusion: The order was set aside and the matter was remanded to the adjudicating authority for a fresh decision after granting opportunity to produce defence witnesses.

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