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2022 (4) TMI 375 - AT - CustomsLevy of penalty u/s 112 of Customs Act, 1962 - undervalued imports - appellant is a beneficiary out of the offence of undervaluation or not - cross-examination of witnesses - violation of principles of natural justice - HELD THAT:- There is no dispute that there is no admission by the appellant as regards the allegation made in the show-cause notice. This has been admitted by the adjudicating authority. It is clear that Shri Rajesh Jain has not made any implicatory admission in his statement and the adjudicating authority has solely relied upon the statements given by Shri K.V. Venugopal and Shri R. Jayachandran - the adjudicating authority has even not referred the request of the appellant for cross examination of the witnesses in his order. In the facts of the present case, the appellant has not given any inculpatory statement and not admitted the allegation made against him - For imposition of penalty against the appellant, the sole reliance was made on the statements of 3rd parties. In such a situation, it is incumbent on the adjudicating to allow the cross examination of the witnesses as mandated under Section 135 of Customs Act, 1962. We find that the adjudicating authority surprisingly neither allowed the cross examination nor even whisper in the impugned order to reject the request for cross examination made by the appellant. Therefore, the order of the adjudicating authority is in clear violation of principles of natural justice. The entire case needs to be reconsidered only after conducting cross examination of the witnesses whose statements were used against the appellant for imposition of penalty - appeal allowed by way of remand.
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