Natural justice requires adjudication of material defences; failure to examine key factual issues justified remand for fresh decision.

An adjudication that does not address material defences, crucial factual questions, and the principles of natural justice is liable to be set aside and sent back for fresh consideration. The order here failed to examine whether the assessee was the real manufacturer, whether the units were independent or dummy units, whether any flow back was proved, and whether limitation and service of notices on all concerned units were properly considered. It also omitted findings on the representative basis used to allege clearances and on several written submissions. The order was therefore set aside and the matter remanded for de novo adjudication after hearing the appellants on all relevant issues.

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Issues: Whether the impugned order was vitiated for non-consideration of material issues and violation of principles of natural justice, warranting setting aside of the order and remand for fresh consideration.

Analysis: The dispute turned on whether the assessee was the real manufacturer for the units from which clearances were attributed, whether the units were independent or dummy units, whether the department had established flow back, and whether the multiple factual and legal objections raised by the appellants had been examined. The order was found to have omitted findings on several substantial questions, including the representative basis adopted for alleging clearances, limitation, the absence of notices to all concerned units, and other defences raised in the written submissions. In these circumstances, the order was treated as lacking the detailed consideration required for such a large demand and penalties.

Conclusion: The order was set aside and the matter was remanded for de novo adjudication after hearing the appellants on all relevant aspects.

Ratio Decidendi: An adjudication that fails to deal with material defences and crucial factual issues, particularly where natural justice is implicated, is liable to be set aside and remanded for fresh decision.

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