Natural justice in remand proceedings bars fresh adjudication where relied upon documents are not supplied and appellate directions are ignored.

An adjudication made after remand was held unsustainable where the adjudicating authority failed to supply the relied upon documents and did not comply with the appellate direction to give the assessee an effective opportunity of hearing. That procedural non-compliance was treated as a breach of natural justice, and the fresh adjudication was therefore vitiated. As a result, the demand, confiscation and consequential penalties could not be sustained, and the assessee was granted consequential relief.

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Issues: Whether the adjudication order passed after remand was vitiated for non-supply of relied upon documents and for failure to comply with the appellate directions, warranting setting aside of the demand, confiscation and penalties.

Analysis: The matter turned on procedural fairness. The remand direction required supply of the relevant registers and an effective opportunity to the assessee before fresh adjudication. The second round order was passed without complying with that direction and without supplying the relied upon documents. Such non-compliance resulted in breach of the principles of natural justice and rendered the fresh adjudication unsustainable.

Conclusion: The demand, confiscation and consequential penalties could not be sustained and the appeal was allowed in favour of the assessee.

Final Conclusion: The impugned adjudication and appellate order were set aside for procedural illegality, and the assessee was held entitled to consequential relief in accordance with law.

Ratio Decidendi: An adjudication made in breach of a remand direction and without supplying relied upon documents violates natural justice and cannot be sustained.

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