Electronic WhatsApp evidence without authentication or independent corroboration cannot sustain an unexplained-investment addition based on third-part...
Mutual current-account transactions excluded from deemed dividend treatment where no fresh borrowing arose; unsupported unsecured-loan addition also f...
CESTAT allowed the appeal and set aside the demands and penalties against the Appellants, holding that the charge of clandestine manufacture/removal was not proved. The Tribunal found allegations rested on assumptions and presumptions without corroborative evidence: no buyer statements, no proved transportation, and no proper investigation linking third-party recoveries to the Appellants. Statements recorded during investigation lacked the Section 9D procedural safeguards and were therefore inadmissible; electronic print-outs were inadmissible for want of the requisite Section 36B certification; payment of duty during investigation did not constitute an admission. Stock shortfall based on eye-estimation was unreliable. Consequential penalties were quashed.
CESTAT allowed the appeal and set aside the demands and penalties against the Appellants, holding that the charge of clandestine manufacture/removal was not proved. The Tribunal found allegations rested on assumptions and presumptions without corroborative evidence: no buyer statements, no proved transportation, and no proper investigation linking third-party recoveries to the Appellants. Statements recorded during investigation lacked the Section 9D procedural safeguards and were therefore inadmissible; electronic print-outs were inadmissible for want of the requisite Section 36B certification; payment of duty during investigation did not constitute an admission. Stock shortfall based on eye-estimation was unreliable. Consequential penalties were quashed.
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