2016 (6) TMI 757 - AT - Central Excise

Non speaking order - denial of natural justice - Held that - Commissioner (Appeals) shall examine the relevant material facts, pleadings of the appellant in defence and test the same with evidence to apply the law to the situation and on the basis of outcome thereof shall pass a reasoned and speaking order. The appellant shall be given full length of hearing to overcome the grievance of violation of natural justice.

Summary

Issues: Applicability of input credit for various goods used in factory maintenance and repair.

Analysis:
1. The appellant, engaged in manufacturing Caustic Soda Lye and various other goods, claimed input credit for goods used in factory repair and maintenance. The Commissioner (Appeals) did not provide specific findings on each item, leading to a lack of reasoned decision.

2. The Tribunal noted the importance of a thorough examination of each item to determine eligibility for input credit or capital goods credit. Without a detailed analysis, higher courts cannot conduct a judicial review effectively, potentially leading to legal infirmities and miscarriage of justice.

3. Emphasizing the duty of the appellate Commissioner to evaluate relevant facts, apply the law, and provide a reasoned decision, the Tribunal highlighted that a failure to follow this process could result in a violation of natural justice and impede the appellate process.

4. Due to the lack of detailed examination by the Commissioner (Appeals), the matter was remanded for a fresh hearing. The Tribunal referenced specific judgments to guide the reevaluation process, ensuring adherence to legal principles and natural justice.

5. The Tribunal directed the Commissioner (Appeals) to thoroughly assess the facts, consider the appellant's defense, apply relevant laws, and issue a comprehensive and reasoned order. The appellant was granted a full hearing to address any concerns regarding the violation of natural justice.

6. Ultimately, the appeal was disposed of, with the matter being remanded to the Commissioner (Appeals) for a detailed reconsideration in line with the Tribunal's directions, aiming to uphold procedural fairness and legal standards.