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of <h1>Tribunal grants relief in appeal based on Circular classification, waives predeposit</h1> The Tribunal allowed the appeals, setting aside the impugned orders and granting consequential relief to the appellants. The appellants successfully ... Classification - Department contended that hand made biris were classifiable under Residuary CSH 2404.39 of CETA,1985 as others but as per appellant it fall under CSH 2404.31 - Held that biris were classifiable under CSH 2404.31ibid Issues:1. Waiver of predeposit of confirmed amounts in impugned orders sought by appellants.2. Classification of hand-rolled biris without aid of machines under relevant Chapter Heading.3. Applicability of Board's Circular on classification.4. Interpretation of Apex Court judgments on the retrospective or prospective effect of beneficial circulars.Analysis:Issue 1: Waiver of predepositThe appellants sought waiver of predeposit of confirmed amounts in their impugned orders. They argued that the issue had been settled in their favor by the Board's Circular, which clarified the classification of hand-made biris without aid of machines under a specific Chapter Sub-Heading. The stay applications were allowed, and the appeals were taken up along with other regular matters listed for the day.Issue 2: Classification of hand-rolled birisThe appellants contended that hand-rolled biris without the aid of machines should be classified under Chapter Heading No. 2404.31 with a lower rate of duty. However, the department classified the items under the Residuary Chapter Sub-Heading No. 2404.39, attracting a higher rate of duty. The Board's Circular clarified that hand-made biris without aid of machines should be classified under Chapter Sub-Heading No. 2404.31, relying on judicial pronouncements. The Tribunal modified the stay orders based on this Circular, and the appellants argued for acceptance of the Circular's classification in light of specific Apex Court judgments.Issue 3: Applicability of Board's CircularThe appellants argued that the Board's Circular on classification should be accepted, as it addressed the aspect relevant to their case. They cited Apex Court judgments to support their position that duties were paid correctly under Tariff Heading 2404.31, and no further deposits were required. The Tribunal upheld the classification under Chapter Sub-Heading No. 2404.31 based on the Circular and Apex Court precedents, setting aside the impugned orders and allowing the appeals with consequential relief.Issue 4: Interpretation of Apex Court judgmentsThe department reiterated its view on classification, but the Tribunal considered the appellants' classification under Chapter Sub-Heading No. 2404.31 as correct based on the Board's Circular. The Tribunal also referred to an Apex Court judgment clarifying the retrospective application of beneficial circulars. In light of this, the impugned orders were set aside, and all appeals were allowed with consequential relief, emphasizing the importance of considering beneficial circulars retrospectively and oppressive circulars prospectively.
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