Section 138B Customs Act

Statement First, Cross-Examination Second: CESTAT Allahabad Invokes Section 9D of the Central Excise Act to Quash a ₹2.39 Crore Cenvat Credit Fraud Demand Against Rathi Steel and Power

A Ghaziabad steel manufacturer was one of 68 noticees accused of availing Cenvat credit on cenvatable invoices issued without any actual supply of copper scrap. The Customs, Excise & Service Tax Appellate Tribunal set aside the ₹2.39 crore demand confirmed against it, holding that the adjudicating authority relied on third-party statements without following Section 9D of the Central Excise Act's mandatory procedure for admitting them in evidence, treated a co-noticee's settlement under an amnesty scheme as proof against unrelated parties, and confirmed the demand through generic findings that never engaged the appellant's own case.