Supreme Court Upholds Constitutional Validity of Section 9D of Central Excise Act

The Supreme Court of India recently delivered a decisive order in the matter of GTC Industries Ltd. Vs Collector of Central Excise, dismissing the civil appeals filed by the assessee. The primary legal question presented before the Apex Court revolved around the constitutional validity of Section 9D of the Central Excise Act, 1944, a critical provision that governs the relevance and evidentiary value of statements recorded during official departmental inquiries.

Background of the Dispute

The assessee, formerly known as GTC Industries Ltd. and currently operating under the name Golden Tobacco Limited, initiated a legal challenge against the statutory framework governing central excise proceedings. The core contention pertained to the manner in which statements recorded under the Act are utilized as admissible evidence against an assessee.