Verification of supplier affidavits and letters led to remand for fresh adjudication and waiver of pre-deposit.

Allegations involving non-existent suppliers required verification of the affidavits and letters relied on by the assessee, including whether they were issued by the same persons said to be non-existent. Because the factual position needed fresh examination and related proceedings had already been initiated against the suppliers, the dispute was sent back for re-adjudication by the original authority after granting an opportunity of hearing. The pre-deposit requirement was waived pending that fresh decision.

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Issues: Whether the demand and penalty matter, based on alleged non-existent suppliers, required remand for verification of the supporting letters and affidavits, and whether pre-deposit was to be waived.

Analysis: The affidavits and letters produced by the assessee required verification to determine whether they were filed by the same persons who were said to be non-existent. As the factual position needed fresh examination and related proceedings had also been initiated against the suppliers, the matter warranted re-adjudication by the original authority. In view of this, pre-deposit was waived.

Conclusion: The matter was remanded to the original adjudicating authority for fresh decision after giving the assessee an opportunity of hearing, and the pre-deposit requirement was waived.

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