Reassessment under s.148A held valid; s.69 additions totaling Rs.7,00,000 deleted after acceptable contemporaneous explanations for property investmen...
Adjudication set aside; Rule 9 valuation based on internet engineer report quashed for Rule 3(4) non-compliance; Section 138B cross-examination requir...
CESTAT allowed the appeal and set aside the order dated 28.05.2021 of the Commissioner (Appeals). The Tribunal held that a statement recorded under s.108, Customs Act, was inadmissible where the procedure under s.138B was not complied with; consequently that statement could not serve as the sole basis for rejecting declared assessable value and for re-determination under r.5, 2007 Valuation Rules. Applying principles analogous to s.14 and s.9D, Central Excise Act, the Tribunal confirmed that admissibility requires prior examination of the maker as witness and an adjudicative determination on relevance followed by an opportunity for cross-examination. The Commissioner (Appeals) order based solely on the inadmissible statement was therefore unsustainable.
CESTAT allowed the appeal and set aside the order dated 28.05.2021 of the Commissioner (Appeals). The Tribunal held that a statement recorded under s.108, Customs Act, was inadmissible where the procedure under s.138B was not complied with; consequently that statement could not serve as the sole basis for rejecting declared assessable value and for re-determination under r.5, 2007 Valuation Rules. Applying principles analogous to s.14 and s.9D, Central Excise Act, the Tribunal confirmed that admissibility requires prior examination of the maker as witness and an adjudicative determination on relevance followed by an opportunity for cross-examination. The Commissioner (Appeals) order based solely on the inadmissible statement was therefore unsustainable.
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