Statements Retracted at Cross Examination have No Evidentiary Value Cannot be Relied Upon to Demand Duty: CESTAT

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has ruled that statements retracted during cross-examination have no evidentiary value and cannot be relied upon to demand duty. The case involved a company that had retracted statements made during an investigation, arguing that they were obtained under duress. The department had relied on these statements to demand duty. However, the CESTAT held that retracted statements, especially those made under duress, cannot be used as evidence unless corroborated by independent evidence. This ruling reinforces the principle that statements obtained under coercion or duress are not admissible in legal proceedings. It also highlights the importance of ensuring that statements are made voluntarily and without any pressure. This decision provides relief to taxpayers who may have been coerced into making incriminating statements during investigations.