No Excise Duty Demand can be Raised from Data Received on Pen Drive which is Not a Reliable Evidence: CESTAT [Read Order]

The Kolkata bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) held that the data received from the pen drive cannot be admitted as evidence, and demand of excise duty cannot be raised from the date received from the pen drive. 

Attitude Alloys Private Ltd, Arun Kadmawala, and Sitaram Agarwal, the appellant assessee were a company that manufactured and cleared the Ferro Silico Manganese from their factory. 

The assessee appealed against the order passed by the adjudicating authority for confirmation of the demand of excise duty based on computerized data maintained by the computer operator of the Ajay Behera which had been retrieved from a pen drive recovered from one of the office table drawer of Behera, during search of office premises and for the imposition of penalties against the assessee. 

Kartick Kurmy, the counsel for the assessee contended that the pen drive was a floating device and unless the computer from which the electronic record was produced was identified, the data recovered from the pen drive cannot be admitted as evidence. 

S. Mukhopadhyay, the counsel for the department relied on the decisions made by the lower authorities and contended that the data received from the pen drive and computer printouts was relevant and the demand raised as per the information was as per the law and liable to be sustained. 

The Bench observed that in the case of M/s Jai Balaji Industries Ltd. Vs. CGST, the court held that the Pen drive was a floating device and unless the computer from which the electronic record was produced was identified, the data recovered from the pen drive cannot be admitted as evidence. 

The two-member bench comprising Ashok Jindal (Judicial) and Anpazhakan (Technical) held that no demand for excise duty can be raised from the data received from any pen drive and computer printouts. 

To Read the full text of the Order CLICK HERE

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates