2011 (9) TMI 284 - AT - Customs

Appellate Tribunal CESTAT overturns fabric classification order, stresses natural justice, sets quick deadline

The Appellate Tribunal CESTAT, New Delhi, set aside the classification order of polyester bonded fabrics under chapter 59 by the Commissioner (Appeals) ... Circular No.2/2011-Cus - Correct classification of polyester bonded fabrics - classification of the same was claimed by the respondents either under chapter 54 or chapter 55. However, on appeal, the Commissioner (Appeals) has accepted the respondents, stand of classification under chapter 59 - Board's Circular No.2/2011-Cus contains detailed guidelines for correct classification of the polyester bonded fabrics - should be classified depending on type of textile material and the nature of bonding - original adjudicating authority directed to pass the impugned order within a period of six weeks - All Appeals disposed off Issues involved: Correct classification of polyester bonded fabrics imported by the respondents under chapter 54, chapter 55, or chapter 59.The judgment by the Appellate Tribunal CESTAT, New Delhi, revolved around the dispute concerning the classification of polyester bonded fabrics imported by the respondents. The Revenue appealed against the order passed by the Commissioner (Appeals), which accepted the classification under chapter 59, differing from the initial claims under chapter 54 or chapter 55. The Tribunal noted that chapter 59 was not initially considered by the adjudicating authority, and a subsequent circular by the Board provided detailed guidelines for classification based on textile material and bonding nature. As this circular was not before the original authority or the Commissioner, the Tribunal decided to set aside the order and remand the matter for a fresh decision by the adjudicating authority. It was emphasized that no opinion on the case's merits was expressed, and the principles of natural justice would be followed, granting the importers an opportunity to present their case.The Tribunal also addressed the request for time-bound re-adjudication due to ongoing disputes, directing the original adjudicating authority to issue the order within six weeks from the present judgment. Ultimately, all appeals were disposed of through remand for further proceedings, ensuring a fair opportunity for the importers to present their case and emphasizing adherence to procedural fairness and timely resolution of the matter.