Factual verification of fabric receipts and consumption led to remand for fresh consideration under exemption notifications

Entitlement under Notifications No. 29/2004 and 30/2004 depended on factual verification of receipt and consumption of fabrics, processing activity, and subsequent clearances. Because the records before the Tribunal were incomplete and the adjudicating authority had confirmed the demand without fully verifying the available material, the matter was remanded for fresh consideration. The lower authority was directed to call for records or conduct verification at the assessee's premises, and the appellant was required to file a lot-wise statement and cooperate with the process, with all issues left open.

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Issues: Whether the matter should be remanded for verification of records and fresh consideration of the appellant's entitlement under Notifications No. 29/2004 and 30/2004.

Analysis: The dispute turned on factual verification of the receipt and consumption of fabrics, the processing carried out, and the subsequent clearances. The records produced before the Tribunal were incomplete, but it was also noted that the adjudicating authority had confirmed the entire demand without giving benefit to the extent the available records could have been verified. The Tribunal held that such factual examination could best be undertaken by the lower authorities by calling for the records or by conducting verification at the assessee's premises. The appellant was directed to file a lot-wise statement and cooperate with the verification process.

Conclusion: The matter was remanded to the adjudicating authority for fresh consideration after verification of records, with all issues kept open.

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