Reasoned quasi-judicial orders and limitation in duty demands drive remand for fresh exemption review.

A customs/excise limitation challenge failed because the notice was supported by evidence of timely service, so the demand was not treated as time-barred. The merits finding in the appellate order was set aside because it was unreasoned; a quasi-judicial order must give reasons, and the matter was remanded for fresh consideration of the assessee's eligibility for exemption notifications in accordance with natural justice.

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Issues: (i) Whether the demand was barred by limitation. (ii) Whether the appellate order could be sustained when the finding on merits was unsupported by reasons and required reconsideration in accordance with natural justice.

Issue (i): Whether the demand was barred by limitation.

Analysis: The notice was issued for duty relating to the period 1-3-1986 to 31-3-1986, and the evidentiary material showed timely service of the notice. The earlier finding that the notice was beyond the six-month period could not be sustained on the record before the Tribunal.

Conclusion: The plea of limitation failed and the demand was not held to be time barred.

Issue (ii): Whether the appellate order could be sustained when the finding on merits was unsupported by reasons and required reconsideration in accordance with natural justice.

Analysis: The finding on merits recorded in the appellate order was unreasoned. A quasi-judicial order must contain reasons, and absence of reasons offends the basic principles of natural justice. The matter also required fresh examination of the assessee's eligibility for exemption notifications for the relevant period.

Conclusion: The merits finding was set aside and the matter was remanded for de novo decision in accordance with natural justice.

Final Conclusion: The departmental appeal succeeded on limitation, the cross-objection succeeded to the extent of securing reconsideration on merits, and the dispute was sent back for fresh adjudication.

Ratio Decidendi: A quasi-judicial order must be supported by reasons, and where the order on merits is unreasoned, it is liable to be set aside and remanded for fresh decision in accordance with natural justice.

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