Wrong question in excise dispute led to setting aside of Tribunal order and remand for fresh consideration.

The Tribunal misdirected itself by treating only the exigibility of waste to excise duty as the controversy, when the real issue was whether dutiable goods had been cleared as waste through suppression of facts and consequent evasion of excise duty. By deciding the matter on the wrong question, it failed to adjudicate the dispute placed before it in accordance with law. The SC therefore held the order unsustainable, set it aside, and remitted the appeals for fresh consideration on the correct issues.

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Issues: Whether the Tribunal misdirected itself by treating the exigibility of waste to excise duty as the only controversy, and whether its order required to be set aside for fresh consideration.

Analysis: The Tribunal proceeded on an incorrect premise by confining the dispute to the taxability of waste material, whereas the real controversy was whether dutiable goods had been cleared as waste pursuant to suppression of facts and consequent evasion of excise duty. By deciding the matter on the wrong question, the Tribunal failed to adjudicate the issue placed before it in accordance with law.

Conclusion: The Tribunal's order was unsustainable and was set aside, and the appeals were remitted to the Tribunal for fresh decision in accordance with law.

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