Duty liability on scrap sale of used capital goods remitted for fresh hearing after inadequate assessee representation.

Dispute concerned duty liability on capital goods removed after long use and sold as scrap. The Tribunal had accepted the revenue's appeal without effective assistance from the assessee, even though the legal issue had been decided in favour of assessees in other cases. The High Court held that the interests of justice required both sides to be heard and the matter to be reconsidered afresh. The Tribunal's order was set aside and the dispute was remitted for a fresh decision after hearing both parties.

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Issues: (i) Whether the Tribunal's order deserved interference where the appeal of the revenue had been decided without effective representation for the assessee, and the matter should be remitted for fresh hearing.

Analysis: The appeal before the High Court arose from a dispute on duty liability in respect of capital goods removed after long use and sold as scrap. The Tribunal had accepted the revenue's appeal in the absence of proper assistance from the assessee, although the legal issue had been decided in favour of assessees in other cases. In these circumstances, the Court found that the interests of justice would be served by affording both sides an opportunity of hearing and by having the Tribunal reconsider the matter afresh.

Conclusion: The Tribunal's order was set aside and the matter was remitted to the Tribunal for fresh decision after hearing both parties.

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