Step 1: Analyzing the given equation.
We are given the equation:
\[
\frac{\sin A - \sin C}{\cos C - \cos A} = \cot B
\]
This suggests a relationship between the angles \( A \), \( B \), and \( C \) in the triangle.
Step 2: Verifying the progression.
By solving the equation and comparing the relationship between the angles, we find that \( A \), \( B \), and \( C \) are in arithmetic progression.
Step 3: Conclusion.
Thus, the angles \( A \), \( B \), and \( C \) are in arithmetic progression, which makes option (D) the correct answer.