Natural justice in adjudication: failure to hear the defence justified remand for fresh merits consideration.

An adjudication passed without a meaningful opportunity to file a detailed defence or be heard may be set aside and remanded for fresh consideration on merits. Here, the Original Authority decided the second show cause notice without the appellants' written reply and oral hearing, while fresh material on duty calculation, Cenvat credit and SSI exemption was also placed before the Tribunal. The matter was therefore restored to the Original Authority for de novo adjudication on the basis of the defence and supporting records, with time-bound cooperation required from the appellants to avoid delay.

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Issues: Whether the adjudication order required interference for want of a proper opportunity to file a detailed reply and be heard, and whether the matter should be remanded for fresh decision on the second show cause notice.

Analysis: The Original Authority decided the matter without the appellants' detailed written defence and without oral hearing on the issues raised in the second show cause notice. The appellants also sought settlement proceedings, which were later rejected, and they placed fresh factual material before the Tribunal concerning duty calculation, cenvat credit, and SSI exemption. In these circumstances, the Tribunal found it appropriate that the disputed issues be examined afresh by the Original Authority on the basis of the appellants' defence and supporting records, with time-bound cooperation from the appellants to avoid delay.

Conclusion: The matter was remanded for de novo adjudication, and the appellants succeeded to that extent.

Final Conclusion: The impugned adjudication was set aside in part and the dispute was restored to the Original Authority for fresh consideration on merits.

Ratio Decidendi: An adjudication passed without affording a meaningful opportunity to place the defence and supporting evidence on record may be remanded for fresh decision in accordance with natural justice.

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