HC Remands Case Over Denial of Cross-Examination Right

Case Details: Paper Trade Links through its Proprietor Shri Sandeep Bhargava vs. Union of India Department of Revenue Ministry of Finance - [2025] 176 taxmann.com 529 (Madhya Pradesh)

Judiciary and Counsel Details

• Vivek Rusia & Binod Kumar Dwivedi, JJ.
• Piyush Parashar, Adv. for the Petitioner.
• Romesh Dave, Prasanna Prasad, Himanshu Joshi, Advs. & Anand Soni, Addl. Adv. General for the Respondent.

Facts of the Case

The petitioner, a proprietor of a firm, filed the petition against the order of the Adjudicating Authority. The Authority imposed the order imposed tax liability and penalty on the assessee. AA rejected the assessee’s prayer for cross-examination on the ground that it would cause a delay in proceedings. He contended that the witnesses had made a statement after understanding the provisions of Section 70 of the CGST Act, and their statements appeared to be correct.

High Court Held

The High Court held that every witness who either gives an oral statement or affidavit is always subjected to cross-examination. The right of cross-examination is provided under the Evidence Act. Not providing the opportunity to cross-examine witnesses would violate the principles of natural justice. The matter was remanded back to the AA to proceed further at the stage of cross-examination.