Limited remand on duty quantification: prior findings on manufacture and exemption were not open for reconsideration.

The earlier remand confined the adjudication to Modvat credit and verification of the credit relatable to doubled yarn, so the adjudicating authority could not reopen issues on manufacture or exemption under Notification No. 35/95-CE. At the same time, the authority remained bound to re-quantify the duty demand correctly, including examination of the assessee's claim that the liability was lower. The impugned order was set aside only for limited re-quantification, and the matter was sent back for fresh duty calculation after giving the assessee an opportunity to explain its position.

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Issues: Whether the matter required re-quantification of the duty demand in accordance with the earlier remand directions, and whether issues beyond quantification were open for reconsideration.

Analysis: The earlier remand had confined the adjudication to consideration of Modvat credit and verification of the credit relatable to the doubled yarn. On that footing, the adjudicating authority was not required to reopen issues on manufacture or exemption under Notification No. 35/95-CE. At the same time, the adjudicating authority was not barred from correctly re-quantifying the demand by examining the full quantification aspect, including the assessee's contention that the duty liability stood at a lower figure. The impugned order was therefore set aside only for the limited purpose of fresh quantification after giving the assessee an opportunity to explain its claim.

Conclusion: The demand was remanded to the original adjudicating authority for re-consideration and correct re-quantification of duty liability.

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