Appellate Tribunal remands case for duty verification, citing breach of natural justice.

The Appellate Tribunal CEGAT allowed a Revenue appeal, remanding the case for verification of duty liability discharge by the input manufacturer before granting deemed Modvat credit. The Commissioner (Appeals) was found to have relied on fresh evidence without allowing the department to respond, breaching principles of natural justice. The impugned order was set aside for reconsideration.

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The Appellate Tribunal CEGAT, New Delhi allowed a Revenue appeal and remanded the case to the original authority to verify if the input manufacturer had discharged their duty liability before granting deemed Modvat credit to the respondents. The Commissioner (Appeals) had relied on fresh evidence without giving the department a chance to comment, which was against the principles of natural justice. The impugned order was set aside for further examination.

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