Natural justice in Cenvat credit disputes requires reasoned consideration of submissions and evidence before disallowance is sustained.

An appellate order denying Cenvat credit on input services was treated as unsustainable because it did not deal with the assessee's submissions or documentary evidence on insurance services, garden maintenance, security services, and authorised service station charges. The non-speaking nature of the order, together with unresolved factual and legal contentions, required reconsideration on merits. The matter was remanded for fresh adjudication by the original authority after granting a hearing and observing natural justice.

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Issues: Whether the appellate order denying Cenvat credit on various input services could be sustained when it was passed without dealing with the assessee's submissions and evidence, and whether the matter required remand for fresh adjudication.

Analysis: The appellate authority's order was found to be non-speaking because it did not consider the assessee's explanations on insurance services, garden maintenance, security services, and authorized service station charges, nor did it examine the documentary evidence produced in support of the credit claim. Since the bulk of the disputed credit related to insurance services and the assessee had raised factual and legal contentions requiring proper consideration, the order was held to be unsustainable. The matter was therefore sent back for fresh decision by the original adjudicating authority after granting opportunity of hearing and following natural justice.

Conclusion: The credit disallowance was not finally upheld, and the matter was remanded for de novo adjudication in favour of the assessee.

Final Conclusion: The dispute was reopened for fresh consideration on merits, with the original adjudicating authority directed to pass a reasoned order after considering the assessee's submissions and evidence.

Ratio Decidendi: An order that fails to consider material submissions and evidence is unsustainable and must be set aside for fresh adjudication after observance of natural justice.

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