Court dismisses Writ Appeals on zinc sulphate classification issue, emphasizes due process rights

ZINC PRODUCTS Versus UNION OF INDIA

ZINC PRODUCTS Versus UNION OF INDIA - 1992 (57) E.L.T. 222 (Mad.) Issues: Classification of zinc sulphate product under different headings; Validity of communication from Superintendent of Central Excise, Madras; Legality of order from Central Board of Excise and Customs.

Classification Dispute:
The case involved four Writ Appeals concerning the classification of a product by two parties under different headings. M/s. Zinc Products challenged an order directing classification under Heading 38.08, while they previously classified it under Heading 28.33. M/s. Swathy Chemicals also contested the same order. The Single Judge opined that the communication from the Superintendent only sought particulars and did not express an opinion on the classification issue. The parties were advised to avail legal recourse during adjudication. Consequently, all four Writ Petitions were dismissed.

Communication Validity:
Regarding the communication from the Superintendent of Central Excise, Madras, the appellants argued that they were unduly directed to classify their products under Heading 38.08 without opportunity for input. The Court agreed that the communication restricted the appellants without due process, preventing them from participating meaningfully in any adjudication proceedings. Thus, the Court held that the Writ Petitions challenging this communication should not be dismissed summarily.

Order by Central Board of Excise and Customs:
The Court addressed the order dated 26-6-1990 of the Central Board of Excise and Customs, emphasizing that until the process was initiated in accordance with the law, the appellants could seek legal remedies. The Court clarified that no quantification order had been issued against the appellants to date. The dismissal of the Writ Petitions questioning the Board's order was upheld, subject to the appellants' right to due process. Consequently, some Writ Appeals were dismissed, while others were allowed, quashing the challenged communication.