Cross-Examination Requests should not be Allowed without Substantive Reply on Merits to SCN: Madras HC to Customs Dept

The Madras High Court ruled that cross-examination requests should not be allowed without a substantive reply on the merits to the Show Cause Notice (SCN). The case involved Nalin Gupta, who received an SCN under Section 28(4) of the Customs Act, 1962, from the Commissioner of Customs. Gupta requested cross-examination of witnesses without replying to the SCN’s merits. The Customs Department initially rejected this request, but the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) later directed the department to allow cross-examination. Despite this, the petitioner challenged the SCN as time-barred under Section 28(9) of the Customs Act. The High Court upheld the necessity of a substantive reply before granting cross-examination, emphasizing that procedural fairness must be balanced with the need for timely adjudication. This ruling clarifies the procedural requirements for cross-examination in customs cases.