Job-work exemption evidence supported remand for fresh adjudication after due opportunity and natural justice.

Documents showing that goods were sent by the principal manufacturer under returnable challans, together with the job-work register and supporting declarations, were treated as material to the core issue of whether the clearance fell within the job-work and exemption regime. The Tribunal noted that such evidence could not be ignored merely because some documents had not been produced before the original authority, especially where the contention had not been examined. It therefore sustained the remand for de novo adjudication so the exemption claim and any duty demand on the job worker could be decided afresh after due opportunity and in accordance with natural justice.

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Issues: Whether the Commissioner (Appeals) was justified in remanding the matter for de novo adjudication after considering documents relied upon to show that the goods were manufactured and cleared on job-work basis under the relevant exemption notifications.

Analysis: The available material indicated that the principal manufacturer had sent inputs and semi-finished goods under returnable challans and that the job-work register and related declarations supported the plea that the activity was undertaken on job-work basis. The Tribunal held that these documents were material to the core controversy, namely, whether duty could be demanded from the job worker when the clearance was claimed to be under the job-work / exemption regime. It was also noted that even if some of those documents were not produced before the original authority, they could not be ignored when they were relevant to the issue and the lower authority had not examined that contention. The remand was therefore found to be proper to enable adjudication after giving due opportunity and in accordance with natural justice.

Conclusion: The remand order was upheld and the Revenue's challenge failed.

Final Conclusion: The Tribunal sustained the direction for de novo consideration on the job-work exemption issue and left the matter to be determined afresh by the adjudicating authority.

Ratio Decidendi: Where the documents relied upon are material to determine whether manufacture and clearance were on job-work basis under the applicable exemption regime, the appellate authority may sustain remand for fresh adjudication so that the controversy is examined on its merits after due opportunity to the parties.

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