Power of remand in refund disputes upheld where document verification by the adjudicating authority was necessary.

A refund dispute arose over whether the adjudicating authority could be asked to verify supporting documents after the Commissioner (Appeals) allowed refund based on evidence of despatch of goods. The Revenue invoked the amendment to Section 35A(3) of the Central Excise Act, 1944 to argue that the Commissioner (Appeals) had no power of remand. The Tribunal nevertheless found that verification of the documents by the adjudicating authority was necessary and remitted the matter for that purpose, with the Revenue's appeal succeeding.

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Issues: Whether the matter could be remitted to the adjudicating authority for verification of the documents relating to the refund claim in view of the restriction on the Commissioner (Appeals)'s power of remand.

Analysis: The lower appellate authority had allowed the refund claim on the basis of documents showing despatch of goods and had directed the adjudicating authority to verify those documents and sanction refund accordingly. The Revenue relied on the amendment to Section 35A(3) of the Central Excise Act, 1944 to contend that the Commissioner (Appeals) had no power to remand. The Tribunal found that verification of the supporting documents by the adjudicating authority was required.

Conclusion: The matter was remitted to the adjudicating authority for verification, and the Revenue's appeal succeeded.

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