Cenvat credit reversal on common input services required fresh adjudication where the factual plea was not examined.

Reversal of Cenvat credit on common input services was pleaded as equivalent to non-availment of credit for purposes of the exemption notification, but that factual claim had not been examined by the lower authorities. The Tribunal therefore set aside the impugned order and remitted the matter for fresh adjudication, leaving the merits open and directing reconsideration after granting both sides an opportunity consistent with natural justice.

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Issues: Whether the matter should be remanded for fresh consideration after the appellant asserted reversal of the Cenvat credit taken on common input services.

Analysis: The appellant placed reliance on reversal of the entire Cenvat credit on input services and contended that such reversal should be treated as non-availment of credit for the purpose of the exemption notification. As this factual plea had not been examined by the lower authorities, the matter required reconsideration at the original adjudicatory stage. The Tribunal therefore declined to express any opinion on the merits and considered it appropriate to have the issue examined afresh after giving the parties an opportunity in accordance with natural justice.

Conclusion: The impugned order was set aside and the matter was remitted to the adjudicating authority for fresh decision.

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