2020 (3) TMI 769 - AT - Customs

Tribunal Orders Fair Reassessment Due to Violation of Natural Justice

The Commissioner of Central Excise & Customs Hyderabad-II Versus M/s Big Apple Computers

The Tribunal found that the change in classification of goods without considering submitted documents or granting an opportunity for cross-examination ... Change in classification of goods - monitors and T.V. tuners - principles of natural justice - HELD THAT:- The request made by the respondent herein for cross-examination of the concerned officials of the department who changed the classification of the goods were not being adhered to and no specific reasons have been assigned for denial of cross-examination of those persons. Further, it is also noted that the respondent herein have specifically stated before the original authority that it is in a position to establish the fact that the goods in question imported by it should appropriately be classifiable under CTH mentioned in the bill of entry. Thus, it is a classic case that the matter was adjudicated against the respondent by denying the principle of natural justice. The law is well settled that the matter cannot be adjudicated behind the back of the importer and importer should be given adequate opportunity to explain its case with the documentary evidence in support of the claim of classification of the subject goods under CTH 8528100 and 84733030 respectively. Therefore, the matter should be examined at the original level thoroughly with the help of the submissions made by the respondent in support of its claim of classification under the CTH mentioned in the bill of entry presented for assessment. Appeal allowed by way of remand. Issues:Change in classification of goods, violation of principles of natural justice, opportunity for cross-examination, remand to original authority.Change in Classification of Goods:The Revenue challenged the change in classification of monitors and T.V. tuners by the Commissioner of Customs, Central Excise, and Service Tax in the adjudication order. The Revenue contended that the goods should be classified under CTH85285900 and 85299090, not under CTH 85285100 and 84733030 as done by the Commissioner. The respondent argued that the change in classification violated principles of natural justice as the department did not consider the documents submitted or grant an opportunity for cross-examination. The respondent requested a remand to the original authority for a fair assessment based on the evidence supporting the original classification in the bills of entry.Violation of Principles of Natural Justice:The respondent claimed that the department's change in classification without considering submitted documents or granting an opportunity for cross-examination violated principles of natural justice. The respondent specifically requested to cross-examine the officials responsible for the change in classification, but the request was denied without specific reasons. The Tribunal noted that denying the respondent the opportunity to present evidence and explain the classification behind their back was against established legal principles. Therefore, the Tribunal emphasized the importance of allowing the importer a fair chance to support their claim with documentary evidence before any decision on classification is made.Opportunity for Cross-Examination:The Tribunal found that the respondent's request for cross-examination of department officials involved in the classification change was not adhered to without valid reasons. It was noted that the respondent had the ability to prove that the goods should be classified under the CTH mentioned in the bill of entry. The Tribunal stressed that denying the opportunity for cross-examination and not allowing the importer to present evidence in support of their classification claim was a violation of natural justice. As a result, the Tribunal ordered a remand to the original authority for a thorough re-adjudication, emphasizing the need for a fair process including the opportunity for personal hearing and cross-examination of relevant officials.Remand to Original Authority:After considering the arguments and examining the relevant order, the Tribunal set aside the impugned order and remanded the matter to the original authority for re-adjudication. The Tribunal directed that the respondent should be granted a personal hearing and allowed to cross-examine the officials responsible for the classification change. The remand was deemed necessary to ensure a fair and just assessment based on the evidence and submissions provided by the respondent. The Tribunal allowed the Revenue's appeal by way of remand to the original authority for a thorough re-examination of the matter in line with the principles of natural justice.