Additional evidence in appeal may be admitted when needed for a proper decision, but natural justice requires fresh hearing.

Additional evidence may be received in appeal where it is necessary for a proper decision and is relevant to the dispute, including valuation and comparability questions. The Tribunal may admit such material when its production is required to enable it to pass orders and to meet the ends of justice. If the opposing party has not had an opportunity to answer the new evidence, fairness requires that the material be supplied and the matter heard afresh before a de novo decision is taken. The principles applied are relevance, necessity, and observance of natural justice.

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Issues: (i) Whether additional evidence relating to the markings on the imported bags could be taken on record in the appeal proceedings; (ii) whether the impugned order-in-appeal required to be set aside and the matter remanded for fresh adjudication after furnishing the additional evidence to the respondents.

Issue (i): Whether additional evidence relating to the markings on the imported bags could be taken on record in the appeal proceedings.

Analysis: Reception of additional evidence is not barred in every case. It may be permitted where the material is necessary for a proper decision and where the Tribunal considers production of documents necessary to enable it to pass orders or to meet the ends of justice. The material sought to be produced bore directly on the valuation dispute and on the question whether the compared imports were from the same manufacturer and of the same grade.

Conclusion: Yes. The additional evidence was admissible and was rightly allowed on record.

Issue (ii): Whether the impugned order-in-appeal required to be set aside and the matter remanded for fresh adjudication after furnishing the additional evidence to the respondents.

Analysis: The respondents had not been given an opportunity to meet the department's case founded on the additional evidence. Since the new material had a bearing on the valuation issue, fairness required that it be supplied to the respondents and that they be heard afresh before a fresh decision was taken.

Conclusion: Yes. The order-in-appeal was set aside and the matter was remanded for de novo adjudication after supplying the additional evidence and hearing the respondents afresh.

Final Conclusion: The department succeeded in getting the additional material accepted, but the valuation dispute was sent back for fresh decision after due opportunity to the respondents.

Ratio Decidendi: Additional evidence may be admitted in appeal when it is necessary for a proper decision and the opposing party is afforded a fresh opportunity to answer it, consistent with the ends of justice and natural justice.

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