Cenvat credit declarations and natural justice led to remand for fresh adjudication after evidence review

Demand based solely on non-production of declarations evidencing non-availment of Cenvat credit could not be sustained without first examining the underlying evidence. As the appellant claimed the declarations were now available and could be produced, the factual question required scrutiny by the adjudicating authority in the first instance. The impugned order was set aside and the matter was remanded for fresh decision after giving due opportunity and complying with the principles of natural justice.

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Issues: Whether the demand confirmed on the ground of non-production of declarations showing non-availment of Cenvat credit could be sustained, and whether the matter required remand for fresh consideration.

Analysis: The demand had been confirmed solely because the requisite declarations were not produced before the adjudicating authority. The appellant stated that such declarations were now available and could be produced. Since the dispute turned on appreciation of the factual material relating to non-availment of Cenvat credit, the proper course was for the adjudicating authority to examine the evidence in the first instance. The matter therefore warranted reconsideration after affording due opportunity and following the principles of natural justice.

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

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