Unadjudicated credit transfer request required remand for fresh consideration and hearing before the tax demand could stand.

A material request for transfer of Cenvat credit under rule 8 had not been adjudicated before the demand was confirmed, so the existing order could not stand without examining that issue. To ensure proper determination, the matter was remanded for fresh consideration by the Original Authority after allowing the assessee to produce documents and make submissions. The order was therefore set aside, and the dispute was returned for reconsideration on the unresolved request with a hearing opportunity to the appellant.

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Issues: Whether the matter required reconsideration by the Original Authority after taking into account the appellant's request for transfer of credit under rule 8 of the Cenvat Credit Rules.

Analysis: The appellant had sought transfer of the credit by letter dated 18-6-2005, but no decision was taken on that request before the demand was confirmed. Since the request was relevant to the dispute and had not been adjudicated, the existing order could not be sustained without examining that aspect. To secure a proper determination, the matter had to be sent back for fresh consideration after affording the appellant an opportunity to produce documents and make submissions.

Conclusion: The impugned order was set aside and the matter was remanded to the Original Authority for fresh decision after considering the appellant's letter dated 18-6-2005. The remand is in favour of the appellant.

Final Conclusion: The dispute was not finally decided on merits and was returned for reconsideration by the Original Authority with a hearing opportunity to the appellant.

Ratio Decidendi: Where a material request bearing on the tax dispute has not been decided, the adjudication cannot be sustained without fresh consideration of that request after giving the assessee a proper opportunity of hearing.

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