Failure to decide marketability and limitation pleas justified remand for fresh adjudication and express findings.

Where an assessee specifically raises marketability of a ring captively used in tyres for animal-driven vehicles, the adjudicating authority must examine that defence and record a clear finding; the omission to do so warranted remand for fresh adjudication. Where limitation is also pleaded as a specific defence, the authority must deal with it expressly; failure to consider the plea likewise required reconsideration. The adjudication was therefore set aside to the extent necessary and remanded for a fresh decision on marketability and limitation after giving the assessee an opportunity of hearing.

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Issues: (i) whether the assessee's plea that the ring manufactured and captively used in tyres for animal-driven vehicles was not marketable required adjudication; (ii) whether the assessee's plea that the demand was barred by limitation required adjudication.

Issue (i): whether the assessee's plea that the ring manufactured and captively used in tyres for animal-driven vehicles was not marketable required adjudication.

Analysis: The assessee had specifically raised the issue of marketability in reply to the show cause notice. The adjudicating authority was required to examine that plea and return a clear finding, but no such consideration or finding was recorded.

Conclusion: The issue was not decided on merits and was sent back for fresh consideration.

Issue (ii): whether the assessee's plea that the demand was barred by limitation required adjudication.

Analysis: The assessee had also raised limitation as a specific defence, but the adjudicating authority did not consider it or record any finding thereon. The matter therefore required reconsideration on that issue as well.

Conclusion: The issue was not decided on merits and was sent back for fresh consideration.

Final Conclusion: The adjudication was set aside to the extent necessary and the matter was remanded for fresh decision on marketability and limitation after giving the assessee an opportunity of hearing.

Ratio Decidendi: When a specific defence such as marketability or limitation is raised, the adjudicating authority must examine it and record clear findings; failure to do so justifies remand for fresh adjudication.

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