Speaking order required for re-credit of unutilised Modvat credit, with matter remitted for fresh consideration.

A request for re-credit of unutilised Modvat credit in PLA, after exit from the Modvat scheme, had to be decided through a proper adjudicatory process. A mere letter communicating the Commissioner's view was not a speaking or reasoned order, and the appellant's submissions and relevant case law had to be considered. The matter was therefore remitted to the Commissioner for fresh consideration and for passing a detailed, reasoned and speaking order.

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Issues: Whether the appellant's request for re-credit of unutilised Modvat credit in PLA required a speaking adjudication order by the Commissioner and whether the matter should be remanded for fresh consideration.

Analysis: The dispute concerned unutilised Modvat credit lying in RG 23A Part II after the appellant opted out of the Modvat scheme. The impugned communication was only a letter conveying the Commissioner's decision, without a speaking or reasoned adjudication order. As the appellant had sought re-credit in PLA, the Commissioner was required to decide the request after following the adjudicatory process and considering the appellant's submissions and relevant case law.

Conclusion: The matter was remitted to the Commissioner to consider the appellant's request and pass a detailed, reasoned and speaking order.

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