Remand for verification of whether disputed open well pumps were traded goods, not manufactured by the assessee.

Central excise duty on disputed open well pumps could not be finally confirmed without verifying the assessees' claim that the goods were traded and not manufactured by them. Because that factual plea had not been raised or examined before the original authority, and part of the duty, interest and penalty had already been paid and was not contested, the correct liability on the disputed portion required fresh factual determination. The matter was therefore remanded to the adjudicating authority to verify the nature of the goods and decide afresh, while taking note of the amounts already paid and undisputed.

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Issues: Whether the demand of central excise duty on the disputed quantity of open well pumps was sustainable where the assessees claimed that the goods were not manufactured by them but were procured from another unit, and whether the matter required remand for verification of that claim.

Analysis: The disputed factual assertion that the open well pumps were traded goods and not manufactured by the assessees had not been raised or examined before the original adjudicating authority. The record also showed that a substantial part of the duty, interest and penalty had already been paid and was not being contested. In these circumstances, the correctness of the assessees' plea required factual ascertainment before the duty liability on the disputed portion could be confirmed or set aside.

Conclusion: The matter was remanded to the adjudicating authority to verify whether the disputed goods were traded or otherwise not manufactured by the assessees and then decide the case afresh, taking note of the amounts already paid and not disputed.

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