Natural justice breach in ex parte adjudication led to remand for fresh consideration of Modvat credit and limitation issues.

An ex parte adjudication passed after ignoring an adjournment request and without affording a hearing breached natural justice and could not be sustained. The dispute also involved reconsideration of Modvat credit on PVC pipes used for drawing water from outside the factory, duty computation, and limitation, all of which required fresh factual and legal examination. The matter was therefore remanded for de novo adjudication by the adjudicating authority.

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Issues: Whether the ex parte adjudication, passed without considering the request for adjournment, violated the principles of natural justice and warranted remand for de novo consideration.

Analysis: The request for adjournment had been made on behalf of the assessee and the Commissioner proceeded with the matter without granting an opportunity of hearing. The resulting order was found to have been passed in breach of natural justice. Since the issues relating to admissibility of Modvat credit on PVC pipes used for drawing water from outside the factory, correctness of duty computation, and limitation required factual and legal reconsideration, the matter was directed to be examined afresh by the adjudicating authority.

Conclusion: The ex parte order could not be sustained and the matter was remanded for de novo adjudication.

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