Statements Recorded during Investigation must Comply with S. 9D of Central Excise Act before Reliance: CESTAT

The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has issued a crucial ruling mandating strict compliance with Section 9D of the Central Excise Act for the admissibility of investigative statements as evidence in tax proceedings. The tribunal emphasized that statements recorded during investigations cannot be considered valid evidence unless they are recorded in accordance with the procedural safeguards outlined in Section 9D. These safeguards include proper recording, the provision for cross-examination of the individuals making the statements, and their due authentication, thereby protecting the rights of the assessee.