CESTAT orders Cross-examination of Material Evidence u/s 9D of Central Excise Act in alleged Fake Invoices

The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has ordered a re-trial in a CENVAT credit case involving alleged fake invoices and misuse of excise duty claims. The Chandigarh bench directed the cross-examination of material evidence under Section 9D of the Central Excise Act, 1944. The case involved M/s Mittal Ceramics and its partner, who challenged an order confirming the recovery of inadmissible CENVAT credit amounting to Rs. 5,20,512. The Tribunal found that the cross-examination of witnesses was refused without valid reasons and emphasized the necessity of allowing such cross-examinations to ensure a fair trial. The decision aligns with previous rulings by the Punjab & Haryana High Court and the Tribunal in similar cases, which mandated the cross-examination of witnesses. The CESTAT set aside the impugned order and remanded the case to the adjudicating authority for a fresh decision, ensuring procedural fairness and adherence to legal standards.