Admissibility of Investigation Statements requires witness examination before the adjudicating authority; otherwise statements cannot sustain a penalty.

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....Admissibility of investigation statements recorded during inquiry is conditional: when statements under section 108 (Customs) are not admissible under the primary clause, they become relevant only if the declarants are examined as witnesses before the adjudicating authority, the authority forms an opinion to admit them, and cross examination is afforded; these procedural safeguards in section 138B(1)(b) (and counterpart section 9D(1)(b) in Central Excise) are mandatory. Failure to comply bars reliance on such statements; accordingly, a penalty imposed solely on an unvalidated section 108 statement was set aside and the appeal allowed.....