V.S. Ferrous Enterprises PVT LTD vs. Union Of INDIA

Facts

The Petitioner, V.S. Ferrous Enterprises Pvt Ltd, filed a writ petition challenging a letter dated 10.03.2021 from Respondent No. 3 (Additional/Joint Commissioner Central Tax, Hyderabad GST Commissionerate). This letter rejected the Petitioner's request for cross-examination of witnesses whose statements were relied upon in a show cause notice dated 13.04.2020 (SCN No. 07/2019-20/JC-GST-AE). The Petitioner sought to quash this rejection order and stay the adjudication proceedings. The Court had previously granted interim orders preventing further proceedings on the show cause notice. The Respondents filed a counter-affidavit stating that the impugned letter of 10.03.2021 was recalled and the request for cross-examination would be considered on a case-to-case basis, as communicated vide letters dated 23.07.2021.

Held

The Court noted that the Respondents, in their counter-affidavit, had stated that the impugned letter dated 10.03.2021 was recalled and the request for cross-examination would be considered on a case-to-case basis, as communicated vide letters dated 23.07.2021. Upon production of correspondence dated 23.07.2021, it was confirmed that the authorities had recalled the impugned letter. The authorities also observed that the Petitioner would be permitted to cross-examine witnesses, but this would be on a case-to-case basis, based on relevance for adjudication. The Court acknowledged the Petitioner's apprehension that this might lead to arbitrary denial of cross-examination. However, the Court expected the authorities to take a pragmatic view and the Petitioner not to engage in unnecessary cross-examination on irrelevant issues. In light of the recall order and these observations, the writ petitions were disposed of. The authorities were directed to ensure that adjudication proceedings were expedited, and the Petitioner was directed to cooperate and ensure cross-examination was carried out at the earliest.

Key Issues

1. Whether the rejection of the Petitioner's request for cross-examination of witnesses by Respondent No. 3, as communicated by the letter dated 10.03.2021, was illegal, arbitrary, and violative of Articles 19(1)(g), 20, and 21 of the Constitution of India? Petitioner's Contention: The Petitioner argued that the rejection of their request for cross-examination was illegal and arbitrary, violating their fundamental rights. They sought to quash the order and stay the adjudication proceedings. Respondents' Contention: The Respondents, through their counter-affidavit and subsequent submissions, stated that the impugned letter dated 10.03.2021 was recalled. They further submitted that the request for cross-examination would be considered on a case-to-case basis, based on relevance for adjudication proceedings, and this was communicated via letters dated 23.07.2021. They did not explicitly argue against the Petitioner's claim of illegality or arbitrariness but rather presented the recall of the order as a resolution.