Natural justice and speaking orders require remand where Modvat credit was not decided on merits or after hearing.

An order refusing to deal with a request on merits and then disposing of the appeal without addressing the procedural grievance or granting a hearing is a non-speaking order and cannot stand. The proper course is to set aside such an order and remit the matter for de novo consideration by the original authority, with a speaking order and reasonable opportunity of hearing in compliance with natural justice. The question whether Modvat credit could be taken on an attested copy of the Bill of Entry was left open for fresh decision by the competent authority.

---

---

Issues: Whether the order of the appellate authority, passed without considering the grievance regarding non-consideration of the request by the lower authority and without granting a hearing, was liable to be set aside and the matter remanded for fresh decision.

Analysis: The request for permission to take Modvat credit on the strength of an attested copy of the Bill of Entry had not been decided by the proper authority on merits. The appellate authority also did not address the procedural grievance raised before it and passed an order without hearing the assessee. An order which does not deal with the issue raised and does not contain reasons on that issue is a non-speaking order. In such a situation, the proper course is to set aside the order and remit the matter to the original authority for consideration afresh in accordance with law and the principles of natural justice. The relevance of the trade notice invoked below also required reconsideration at the original stage.

Conclusion: The impugned order was set aside and the matter was remanded to the Assistant Commissioner for de novo consideration and a speaking order after giving reasonable opportunity of hearing to the assessee.

Final Conclusion: The appeal succeeded only to the extent of obtaining remand, and the substantive question of eligibility to Modvat credit on the attested copy of the Bill of Entry was left for fresh decision by the competent authority.

Ratio Decidendi: Where the proper authority has not decided a request on merits and the appellate order does not address the grievance or grant hearing, the order is liable to be set aside and the matter remanded for fresh adjudication by a speaking order after observing natural justice.

---