Failure to consider vital evidence justified remand of the Tribunal's exemption dispute for fresh, reasoned adjudication.

Where a tribunal fails to consider vital material evidence and decides factual questions without adequate examination, its order can raise a substantial question of law and be set aside. The High Court found that the Tribunal had not properly addressed the nature of the industrial unit, the date of commencement of production, the alleged expansion, and entitlement to exemption under Notification No. 20/2007, and had set aside concurrent factual findings without a thorough appraisal of the record. The matter was remanded to CESTAT for fresh consideration and a reasoned decision after hearing the parties.

---

---

Issues: Whether the Tribunal's order setting aside the orders of the adjudicating authorities could be interfered with on the ground that it had failed to consider vital and material evidence and had acted on irrelevant material, warranting remand for de novo adjudication.

Analysis: The appeal under Section 35G of the Central Excise Act, 1944 was held to raise a substantial question of law because the Tribunal had not properly addressed the factual questions concerning the nature of the industrial unit, the date of commencement of production, the alleged expansion, and entitlement to exemption under Notification No. 20/2007 dated 25.04.2007. The order under challenge was found to have set aside concurrent factual findings without a threadbare appraisal of the material evidence.

Conclusion: The Tribunal's order was set aside and the matter was remanded to CESTAT for fresh consideration and a reasoned decision after hearing the parties.

Final Conclusion: The appeal succeeded to the extent of obtaining interference with the Tribunal's order, and the dispute was sent back for de novo adjudication.

Ratio Decidendi: Where a tribunal fails to consider vital material evidence and decides factual issues without adequate examination, its order gives rise to a substantial question of law and may be set aside with remand for fresh consideration.

---