Appellate order set aside for deciding the wrong issue, with the matter remanded for fresh adjudication.

An appellate order can be set aside where the authority decides a question different from the one actually raised in appeal. Here, the Revenue's appeal concerned liability to duty on broken glass bottles and crates arising during filling and packing, but the appellate authority addressed a separate issue relating to reversal of Cenvat credit on durable and returnable bottles and crates returned by buyers. Because the decision did not deal with the issue in dispute, the order was found defective in approach and the matter was remanded for fresh adjudication on the correct question raised by the Revenue.

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Issues: Whether the dispute before the appellate authority related to liability to pay duty on broken glass bottles and crates or to reversal of Cenvat credit on durable and returnable bottles and crates, and whether the impugned order required interference by way of remand.

Analysis: The issue before the appellate authority was whether duty was payable on crates and glass bottles broken during the filling and packing process, whereas the appellate order proceeded on the different question whether the assessee was required to reverse credit in respect of durable and reusable bottles and crates returned by buyers. Since the appellate authority decided a question different from the one actually arising from the Revenue's appeal, the order was found to suffer from an error in approach. The appropriate course was to set aside the impugned order and remit the matter for fresh decision on the issue raised by the Revenue.

Conclusion: The impugned order was set aside and the matter was remanded for reconsideration of the issue raised in the Revenue's appeal.

Final Conclusion: The dispute was returned for fresh adjudication on the correct issue, with the Revenue obtaining the benefit of remand.

Ratio Decidendi: Where the appellate authority decides an issue different from the one actually raised in appeal, the resulting order is liable to be set aside and the matter remanded for decision on the correct question.

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