Appeal allowed, impugned order set aside. Commissioner to issue new order, consider all aspects.

The appeal was allowed, setting aside the impugned order. The Commissioner was instructed to issue a new order in accordance with the law, considering all aspects raised by the appellant and providing an opportunity for document inspection and response filing by the appellant within specified timelines.

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Issues:
1. Natural Justice Violation
2. Non-consideration of appellant's request for re-test of samples
3. Non-consideration of appellant's documents and averments
4. Retrospective application of test results
5. Commissioner's failure to address appellant's contentions comprehensively

Analysis:

The appellant, engaged in manufacturing lead articles, faced a demand for recovery of Modvat credit on duty paid on lead received since 1989. The Central Excise officers, in 1993, found stored residues in the factory, which were tested and deemed as oxides and burnt residue material, not lead scrap. The Commissioner confirmed the demand and penalties, including one under Section 11AC, based on the test reports and the proprietor's statement. The appellant contended violations of natural justice, non-consideration of re-test request, and failure to address documents showing the origin of goods. The appellant argued against the retrospective application of test results to goods received earlier.

The Departmental Representative highlighted the proprietor's statement during the visit, indicating the materials found were raw materials, not disputed by the appellant. However, the appellant maintained it received scrap, supported by seized documents. The Commissioner's order lacked a comprehensive response to the appellant's contentions, necessitating a speaking order addressing all points raised. The Tribunal directed the Commissioner to pass a new order after allowing the appellant to inspect and copy the seized documents, ensuring a fair opportunity for the appellant to present its case.

In conclusion, the appeal was allowed, setting aside the impugned order. The Commissioner was instructed to issue a new order in accordance with the law, considering all aspects raised by the appellant and providing an opportunity for document inspection and response filing by the appellant within specified timelines.

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