TMI Blog2016 (9) TMI 1174X X X X Extracts X X X X X X X X Extracts X X X X ..... moval are considered to be supported by recovery of parallel set of invoice, private records, confessional statements of transporters, confessional statement of various concerned persons and inquiries conducted at various ends. It is apparent that the statements of various persons have been relied upon to draw the conclusion. In other words, the case is not only based on documents. Necessarily in such situation the appellants should have an opportunity to clarify their side by cross examining the persons who gave statement relied upon. This legal position has been fairly well settled by the Hon’ble Punjab& Haryana High Court in a recent decision in the case of G-Tech Industries vs. UOI [2016 (6) TMI 957 - PUNJAB & HARYANA HIGH COURT]. We ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... so made. The original authority vide the impugned order confirmed the duty demand of ₹ 44,06,966/- towards goods cleared without payment of duty. Penalty of equal amount was also imposed on the main appellant. Apart from various other penalties, an amount of ₹ 5 lakh has been imposed on the second appellant being Director of the appellant company. 2. The Ld. Counsel for the appellants submitted that the impugned order is not sustainable both in law and facts. Raising preliminary objection against impugned order, the Ld. Counsel submitted that the main support for the confirmation of demand was drawn from certain private records recovered from the premises of the appellant unit and various statements given by the Director, Aut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oceeding with the merit of the appeal it is necessary to examine the preliminary objection regarding due opportunity not being extended to the appellants to defend their case. As seen from the findings of the Original Authority (para 57.17) the charge against the appellants regarding clandestine production and removal are considered to be supported by recovery of parallel set of invoice, private records, confessional statements of transporters, confessional statement of various concerned persons and inquiries conducted at various ends. 6. It is apparent that the statements of various persons have been relied upon to draw the conclusion. In other words, the case is not only based on documents. Necessarily in such situation the appellants ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng investigation, under Section 14 of the Act, whose makers are not examined in chief before the adjudicating authority, i.e. before Respondent No 2, would have to be eschewed from evidence, and it would not be permissible for Respondent No 2 to rely on the said evidence while adjudicating the matter. Neither, needless to say, would be open to the Revenue to rely on the said statements to support the case sought to be made out in the Show Cause Notice. (iv) Once examination-in-chief, of the makers of the statements, on whom the Revenue seeks to rely in adjudication proceedings, takes place, and a copy thereof is made available to the assessee, it would be open to the assessee to seek permission to cross-examine the persons who have mad ..... X X X X Extracts X X X X X X X X Extracts X X X X
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