Defence evidence cannot be brushed aside as an afterthought in excise adjudication without proper verification and reconsideration.

Defence evidence in excise adjudication cannot be rejected as an afterthought merely because it was not produced at the investigation stage. Where the assessee produced invoices showing sale of goods to industrial consumers, the adjudicating authority was required to examine and, if necessary, verify that material before deciding the duty demand. As the evidence had been discarded without proper consideration, the adjudication was found unsustainable. The matter was remanded for fresh consideration, with directions to take the defence material into account and give the assessee an opportunity to explain its case.

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Issues: Whether the adjudication order was sustainable when the defence evidence produced by the assessee was rejected as an afterthought without proper verification, and whether the matter required remand for fresh consideration.

Analysis: The defence materials included invoices showing sale of the goods to industrial consumers. Such material could not be discarded merely because it had not been produced at the investigation stage. The adjudicating authority was required to examine the evidence, verify its correctness if necessary, and then reach findings on duty demand. Rejecting the defence as an afterthought without considering the material rendered the adjudication unsustainable.

Conclusion: The matter was remanded to the adjudicating authority to reconsider the case after taking into account the evidence produced by the assessee and after giving an opportunity to explain the defence.

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