CENVAT credit dispute left undecided led to remand for a fresh speaking order on the tax demand.

A tribunal order setting aside a service tax demand was found unsustainable because it left undecided the Revenue's specific challenge to irregular availment and wrongful utilisation of CENVAT credit. The assessee did not dispute service tax liability on the construction activity treated as a works contract, but the core controversy on credit entitlement, supported by invoices and documentary evidence, was neither finally examined nor determined despite disallowance at the adjudication stage. The matter therefore required remand for a fresh speaking decision on the CENVAT credit issue and connected questions.

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Issues: Whether the Tribunal's order, which set aside the service tax demand and did not adjudicate the dispute regarding irregular availment and wrongful utilization of CENVAT credit, required interference and remand.

Analysis: The dispute related mainly to the post-2007 period and the assessee did not dispute liability to pay service tax on the construction activity treated as works contract. The record showed that the Revenue had specifically challenged the assessee's entitlement to avail and utilize CENVAT credit without producing invoices or supporting documentary evidence. Although the Tribunal referred to the credit issue in its factual narration, it did not return any finding on that substantial controversy, despite the Adjudicating Authority having specifically disallowed the credit and confirmed recovery. A material issue affecting the demand was therefore left undecided.

Conclusion: The Tribunal's order could not be sustained to the extent it failed to decide the CENVAT credit issue, and the matter was required to be remanded for fresh adjudication on that and connected issues.

Final Conclusion: The appeal succeeded to the extent of setting aside the impugned order and sending the matter back to the Tribunal for a fresh speaking decision on merits, particularly on CENVAT credit availment and utilization.

Ratio Decidendi: Where a material tax dispute is left undecided by the appellate tribunal, especially on a core issue specifically raised and adjudicated below, the matter warrants remand for a fresh speaking order on all substantial issues.

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