Unverified Digital Evidence Fails to Substantiate Sponge Iron Removal Allegations, Revenue Claim Dismissed

CESTAT adjudicated a case involving alleged clandestine removal of sponge iron, where revenue authorities relied primarily on unverified pendrive evidence without substantive corroborative documentation. The tribunal critically examined the evidentiary basis and found insufficient substantiation for the claims. Consequently, the tribunal set aside the confirmed demand of Rs.1,47,93,916/- along with associated interest and penalties. The key legal determination centered on the inadequacy of evidence, specifically highlighting the lack of comprehensive investigative procedures, absence of verifiable input-output analysis, and reliance on unattributed digital records. The appellate order comprehensively rejected the revenue's case due to evidentiary insufficiency and procedural non-compliance. .....

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