Natural justice requires consideration of material evidence; ignoring it can invalidate adjudication and lead to remand.

An adjudication order is unsustainable where material evidence on the genuineness of exemption certificates is ignored and the affected party is denied a fair opportunity to meet the evidence. Here, the authority relied on non-examination of Ministry of Defence officials while failing to properly consider statements indicating that the certificates were not issued by HAL, the plea for cross-examination, and the allegation of duplicate use. The resulting breach of natural justice required the order to be set aside and the matter remanded for fresh de novo adjudication after hearing the respondents and considering the record, with substantive issues left open.

---

---

Issues: Whether the adjudication order could be sustained when material evidence bearing on the genuineness of the exemption certificates was ignored, and whether the matter required remand for fresh adjudication.

Analysis: The department had relied on statements of the Purchase Officer of HAL and the Chief Manager's reply stating that the general certificates were not issued by HAL, Nasik Division. Those materials were referred to in the order itself, yet the adjudicating authority rejected them by resting mainly on the non-examination of Ministry of Defence officials. The order also did not properly deal with the plea for cross-examination or the allegation that some certificates had been used twice. The failure to consider the relevant evidence and to address the material objections resulted in violation of the principles of natural justice.

Conclusion: The adjudication order could not be sustained and the matter had to be remanded for fresh de novo adjudication after affording the respondents an opportunity of hearing and considering the evidence on record.

Final Conclusion: The appeals succeeded only to the extent of setting aside the impugned adjudication and directing fresh consideration, with all substantive issues left open.

Ratio Decidendi: An adjudication order is unsustainable where material evidence on record is ignored and the affected party is not afforded a fair opportunity to meet the evidence before a final decision is taken.

---