Clandestine removal and undervaluation require full evidentiary review; incomplete appreciation led to remand for fresh adjudication.

Clandestine removal and undervaluation were supported by seized documents, statements and corroborative material showing clearance of goods at suppressed values and unbilled consideration through indirect channels. The order dropping the excise proceedings was found to have assessed the computation method and alleged investigative gaps without fully considering the evidentiary record, so its appreciation of facts was incomplete. Prior notices on related facts did not, by itself, bar invocation of the extended period where the present notice relied on additional distinct evidence. The impugned order was set aside and the matter remanded for de novo adjudication with all issues kept open.

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Issues: Whether the order dropping the excise duty proceedings was sustainable in the face of the department's evidence of clandestine removal and undervaluation, and whether the matter required remand for fresh adjudication.

Analysis: The record disclosed a detailed investigation supported by seized documents, statements, and corroborative material indicating clearance of goods at suppressed values, collection of unbilled consideration through indirect channels, and a broader modus operandi of undervaluation and clandestine removal. The reasoning adopted in the impugned order was found to have focused mainly on the method of duty computation and perceived shortcomings in the investigation, without comprehensively assessing the entire evidentiary record. The prior issuance of notices on related facts did not, by itself, preclude invocation of the extended period where the present notice rested on additional and distinct evidence. In these circumstances, the evidentiary appreciation in the impugned order was held to be incomplete and the factual and legal issues required reconsideration on the full material.

Conclusion: The impugned order was set aside and the matter was remanded for de novo adjudication after comprehensive evaluation of all evidence, with all issues kept open.

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