Case Note & Summary
The case involved three Writ Appeals filed against a common order passed by the Writ Court, challenging an Order-in-original under the Central Goods and Services Tax Act, 2017. The appellants, represented by Shri Sheik Dawood, contended that the assessment order was arbitrary and violated natural justice principles, primarily due to the denial of their request to cross-examine two individuals whose statements were used against them in the assessment. The appellants argued that these individuals had made statements claiming that the Input Tax Credit (ITC) claimed by the appellants was fictitious and bogus. Despite a specific request for cross-examination, the Assessing Authority denied this opportunity, stating that the right to cross-examine is not absolute. The court noted that the appellants had claimed the individuals were coerced into making adverse statements. The court analyzed the merits of the case, emphasizing that if the Assessing Authority relied on the statements, the appellants should have been given a chance to rebut them through cross-examination. The court found that the reliance on the statements was excessive and that the denial of cross-examination was unjust. Consequently, the court set aside the common order and the assessment order, directing the Assessing Authority to provide a reasonable opportunity for cross-examination and to reframe the assessment within eight weeks. The Writ Appeals were allowed, and no costs were awarded.
Headnote
A) Taxation - Right to Cross-Examine - Denial of Cross-Examination - Central Goods and Services Tax Act, 2017, Section Not mentioned - The court held that when the Assessing Authority relies on statements of individuals, the assessee must be afforded an opportunity to cross-examine those individuals to ensure fairness in the assessment process. The denial of such an opportunity was deemed arbitrary and against the principles of natural justice. (Paras 8-17)
Issue of Consideration
Whether the right to cross-examine can be insisted upon by the assessee in GST assessments.
Final Decision
The court set aside the common order dated 03.06.2026 and the assessment order dated 28.03.2023, directing the Assessing Authority to afford the appellants an opportunity to cross-examine the individuals and to reframe the assessment within eight weeks.
Law Points
- Right to cross-examine
- Natural justice
- Assessment under GST
- Credibility of statements
- Opportunity to rebut evidence
