Electronic evidence admissibility requires strict statutory compliance, and inadmissible pen drive data can justify remand for fresh adjudication.

Electronic data from a pen drive was inadmissible because the prescribed statutory procedure for relying on such material was not shown to have been followed. As the impugned demand substantially depended on that electronic evidence, the adjudication could not be sustained in its existing form. The demand order was therefore set aside, and the matter was remanded for fresh adjudication limited to the remaining seized documents, which required independent consideration apart from the pen drive data. The surviving allegations were left open for reconsideration on the basis of admissible evidence only.

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Issues: Whether data recovered from a pen drive was admissible in evidence without compliance with the prescribed procedure, and whether the demand order should be set aside and the matter remanded for fresh adjudication on the basis of the remaining seized documents.

Analysis: The prescribed procedure for relying upon electronic material was not shown to have been followed in respect of the pen drive. In the absence of compliance with the statutory requirements, the electronic data could not be treated as admissible evidence. Since the impugned demand substantially rested on that material, the adjudication could not be sustained in its existing form. At the same time, the demands founded on the other seized documents required independent examination, and the adjudicating authority was to be given an opportunity to consider those materials de hors the pen drive data.

Conclusion: The pen drive evidence was held inadmissible, the impugned order was set aside, and the matter was remanded for fresh adjudication limited to the remaining seized documents.

Final Conclusion: The dispute was not finally concluded on the merits of the entire demand, and the surviving allegations were left open for reconsideration by the adjudicating authority.

Ratio Decidendi: Electronic data cannot be relied upon unless the mandatory statutory procedure for its admissibility is complied with, and where the impugned adjudication substantially depends on such inadmissible material, the matter may be remanded for fresh decision on the remaining evidence.

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