Absence of Cross Examination to Prove Clandestine Removal: CESTAT quashes Excise Duty Demand

The CESTAT quashed an excise duty demand imposed on a company for allegedly removing goods clandestinely without payment of duty. The tribunal observed that the tax department failed to provide the company an opportunity to cross-examine the witnesses whose statements were used as the basis for the demand. The tribunal emphasized the importance of cross-examination as a legal right, particularly in cases of clandestine removal where evidence is largely testimonial. Without this due process, the excise duty demand could not be sustained. This ruling underscores procedural fairness in tax enforcement actions.