Remand for fresh verification of input purchases and sales where factual record was not independently examined

Verification of the assessee's purchase and sale of inputs was incomplete because the record did not show any independent examination of the relevant documents and statements. Since the disputed factual position could not be conclusively affirmed on the existing material, fresh scrutiny by the adjudicating authority was necessary. The matter was therefore remanded for verification of the purchase and sale details and for a fresh order after granting the assessee an opportunity of hearing.

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Issues: Whether the matter required remand to the Adjudicating Authority for verification of the purchase and sale of inputs recorded by the assessee.

Analysis: The first appellate authority had set aside the demand on the basis of the documents and statements produced by the assessee, but the record showed that the verification of the purchase and sale details had not been independently undertaken. In these circumstances, the disputed factual position could not be finally affirmed on the existing record and required fresh examination by the adjudicating authority.

Conclusion: The matter was remanded to the Adjudicating Authority for verification of the purchase and sale of inputs and for passing a fresh order after giving the assessee an opportunity of hearing.

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