Reconciliation evidence must be examined before confirming demand; matter remanded for fresh adjudication and proper hearing.

Where a reconciliation statement and supporting records are produced in appeal but were not properly examined by the lower authorities, the dispute should be remanded for fresh adjudication. The appellate body noted that the demand had been confirmed on the basis that the assessee had not produced documentary support before the original authority, but the newly filed reconciliation material explaining the difference between ST-3 returns and ledger figures required verification. Fresh consideration by the adjudicating authority, with a proper opportunity to the assessee to present its case, was therefore necessary.

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Issues: Whether the matter required remand for fresh adjudication after considering the reconciliation statement and other records produced by the assessee.

Analysis: The demand had been confirmed on the footing that the assessee failed to produce supporting documentary evidence before the lower authorities. In the appellate proceedings, the reconciliation statement was placed on record in support of the assessee's explanation for the difference between the ST-3 returns and the ledger figures. Since this material required examination by the original authority, the earlier findings could not be treated as conclusive without considering the documents now produced. Fresh adjudication with an opportunity to the assessee to present its case was therefore necessary.

Conclusion: The matter was remanded to the original adjudicating authority for reconsideration of the claim and the reconciliation statement.

Ratio Decidendi: Where relevant reconciliation material is produced and has not been properly examined by the lower authorities, the dispute should be remanded for fresh adjudication after granting a proper opportunity to the assessee.

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