Non-Verification Of Electronic Evidence With Corroborating Statements As per S9D Of Central Excise Act: CESTAT Quashes Demand Order On Alleged Clandestine Movement Of M S Ingots

The CESTAT Chennai set aside a demand order in a case involving alleged clandestine movement of MS ingots, holding that statements recorded under Section 14 of the Central Excise Act cannot be relied upon unless they are duly verified under Section 9D. The Tribunal emphasized that non-compliance with the procedural safeguards of S.9D (which mandates cross-examination opportunity for the maker of the statement) vitiates the use of those statements as evidence. It held that electronic data seized (computers, pen drives) and unverified statements form the sole basis for the demand, making the entire adjudication unsustainable in absence of S.9D compliance. The decision reinforces the mandatory nature of procedural guarantees in excise proceedings and ensures fairness in enforcement of duty and penalty. (Taxscan)