2016 (10) TMI 858

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....adymade garments viz. gowns, dupattas, etc. On an intelligence M/s Dhanlaxmi s factory was visited by the DRI officers on 12.02.2002 and found that though M/s Dhanlaxmi has shown to have exported readymade garments through merchant exporters to Bangladesh and Dubai against various ARE1, during the period July 2001 to December 2001, but in fact the same were not exported; also the duty free material imported and indigenously procured for use in the export of these garments were diverted. On completion of investigation, demand notice was issued to M/s Dhanlaxmi on 23.03.2005, for recovery of Customs duty and Central Excise duty and proposal for imposition of penalty on them and other co-noticees, both under Customs Act 1962 under Central Exci....

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....Notice, it was categorically submitted that Shri Sanjay Goyal, Shri Prakash Royal and Shri Rajesh Sharma working with M/s Dhanlaxmi are required to be cross examined to prove his innocence, the same was not allowed to him, resulting into gross injustice and violation of basic principles of natural justice. In support, he has referred to the judgment of the Hon'ble Supreme Court in the case of Andman Timber Industries Vs CCE Kolkata II 2015 (324) ELT 641 (S.C.). The learned Advocate Shri Willingdon Christian further argues that the learned Commissioner has erred in imposing composite penalty on the Appellant Shri Parmesh Goyal under Section 112 and 114 of Customs Act, 1962 and also under Rule 209A of erstwhile Central Excise Rules, 1944,....

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....ic request for cross examination of witnesses, whose statements have been relied in the issuance of Notice to them, the same was not allowed by the learned Commissioner during the adjudication proceedings, hence the findings recorded against them and imposition of penalty, is in gross violation of principles of natural justice. 7. We find that the Hon'ble Supreme Court laying down the principle on the issue for cross examination of witnesses in the case of Andman Timber Industries Vs CCE Kolkata II 2015 (324) ELT 641 (S.C.) observed as:- "6. According to us, not allowing the assessee to cross-examine the witnesses by the Adjudicating Authority though the statements of those witnesses were made the basis of the impugned order is a ser....