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2018 Supreme(Ker) 929

K.VINOD CHANDRAN, ASHOK MENON
Mohammed Fariz and Co. – Appellant
Versus
Commissioner of Customs – Respondent


Advocates:
Advocate Appeared:
For the Appellant : C.K. Karunakaran
For the Respondent: Sreelal Warrier, C.G.S.C.

Judgement Key Points

Key Points: - The prosecution/authorities held that sanction under Section 15 of the Passport Act must be obtained before filing charge sheet; absence leads to termination of proceedings. (!) - The court allowed cross-examination of two witnesses whose statements are relied upon in a show-cause/adjucatory process under the Customs Act, directing the adjudicatory authority to permit cross-examination. (!) - The decision discusses the principle that denial of cross-examination when statements are relied upon can render orders void for violation of natural justice; references to Andaman Timber Industries and Shaduli cases are used to justify early opportunity to cross-examine. (!) (!) (!) (!) - The adjudicating process under the Customs Act requires the opportunity of being heard under Section 122A and the right to cross-examine if requested, with implications for validity of final orders if denied. (!) (!) - The order sets aside the impugned judgment and allows cross-examination, directing summons of the witnesses and notice to the appellant. (!)

What is the effect of filing a charge sheet without sanction under Section 15 of the Passport Act on proceedings?

What is the appropriateness of cross-examination of witnesses whose statements are relied upon in adjudication under the Customs Act, and when should such cross-examination be allowed?

What are the consequences when the adjudicating authority relies on statements without providing an opportunity for cross-examination, in terms of natural justice and validity of the order?


JUDGMENT :

ASHOK MENON, J.

1. The appellant is a firm engaged in the business of importing and processing of betel nuts. The appellant filed W.P.(C) No.480/2018 to quash, Ext.P5 proceedings of the Commissioner of Customs (Adjudicating Authority) disallowing the request made by the appellant vide Exts.P3 and P4 to cross-examine some witnesses, whose statements have been relied on as material against the firm in a proceeding by the Commissioner of Customs against the appellant for which a show cause notice under S.25 of the Customs Act, 1962 (for short “the Act”) was issued. The appellant had filed the Writ Petition seeking issuance of a writ of mandamus to direct the respondent to permit cross-examination of the two witnesses, who are co-noticees in the proceedings. In initiation of which Ext.P2 notice was issued.

2. The facts are that the Customs Authorities conducted a search in the offices of the appellant-firm and seized certain documents. Consequent to which, Ext.P2 show cause notice was issued calling upon the firm to show cause why the value of the betel nuts imported by the petitioner from Indonesia covered by 26 Bills of Entry referred to therein shall not be re-determined and






















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