Denial of Cross-Examination upon Imposing Penalty under GST Act Violates Natural Justice: Kerala HC sets aside Order

The Kerala High Court ruled that denying cross-examination in GST penalty cases violates the principle of natural justice. In this case, the taxpayer had been imposed with a penalty under the GST Act, but the request for cross-examination of witnesses was denied. The court observed that cross-examination is a fundamental right for parties involved in legal proceedings to challenge evidence against them. The judgment emphasizes the importance of fairness in administrative procedures, particularly when penalties are imposed. The court set aside the penalty order and directed that a fresh examination be carried out, ensuring compliance with natural justice principles.