Binding departmental circulars and prescribed computation rules required fresh adjudication where the record was incomplete and interest was not computed.

A departmental circular binding on the Department had to be applied in adjudication, and the prescribed computation framework under the Public Notice was not strictly followed. Because the record was incomplete and the interest component had not been computed, the dispute could not be finally determined on existing material. The order was set aside and the matter remanded for de novo adjudication, with a reasonable opportunity to the assessee to produce additional evidence.

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Issues: Whether the demand and penalty arising from simultaneous availment of SHIS and zero duty EPCG benefits were sustainable in view of the Public Notice and CBEC Circular, and whether the matter required remand for fresh adjudication.

Analysis: The circular issued by the Board was binding on the Department, and the adjudicating authority itself treated it as clarificatory. The record also showed that the annexure to the Public Notice, governing computation across different years, had not been strictly followed, and the interest component had not been computed. In these circumstances, the matter could not be finally decided on the existing record and required reconsideration by the adjudicating authority after granting a reasonable opportunity to the assessee to produce additional evidence.

Conclusion: The impugned order was set aside and the matter was remanded for de novo adjudication in accordance with the Public Notice and Circular.

Ratio Decidendi: A departmental circular binding on the Department must be applied in adjudication, and where the prescribed framework for computation has not been properly followed, the dispute warrants fresh determination after affording a fair opportunity.

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