Reasoned customs classification determination required as unexplained remand without assessing circular applicability was treated as unsustainable.

Customs-classification disputes require a reasoned merits determination under the applicable tariff framework, evidence and judicial precedents. The notes state that the Tribunal remanded the matter for de novo adjudication despite having documentary material, competing submissions and relevant precedents, but did not explain why departmental circulars required reconsideration or assess their applicability. Its direction duplicated an earlier instruction to reconsider the circulars without resolving classification on the available record. The remand was therefore described as unsustainable, and the dispute was to be freshly adjudicated by the Tribunal on merits after hearing both sides.

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Issues: Whether the Tribunal's remand of the customs-classification dispute for de novo adjudication, without a discernible basis or merits determination, was sustainable.

Analysis: Although the Tribunal had the relevant documentary material, competing submissions and governing judicial precedents before it, its reasons for directing a relook at the departmental circulars were unclear. The direction replicated an earlier direction requiring the Union of India to reconsider those circulars, without addressing their applicability to the dispute or determining the classification issue on the available record. A reasoned merits determination was required by applying the relevant statutory tariff framework, evidence and precedents.

Conclusion: The Tribunal's remand order was unsustainable; the classification dispute requires fresh adjudication by the Tribunal on merits after hearing both sides.

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