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of <h1>Tribunal grants waiver, remands case for reconsideration due to natural justice violations. Fresh review on liquid glucose classification.</h1> The Tribunal granted the waiver of pre-deposit of duty and remanded the case for reconsideration by the original authority due to violations of natural ... Stay/Dispensation of pre-deposit of duty Issues Involved:1. Waiver of pre-deposit of duty.2. Classification of liquid glucose under the Central Excise Tariff Act, 1985.3. Denial of cross-examination of the Chief Chemist.4. Retrospective application of Board's circular.5. Principles of natural justice.Detailed Analysis:1. Waiver of Pre-deposit of Duty:The appellants sought a waiver of the pre-deposit of Rs. 15,85,831.00 levied for the period June 1992 to April 1993. The Tribunal granted the waiver and decided to dispose of the appeal immediately, finding that the denial of the right to cross-examine the Chief Chemist violated the principles of natural justice.2. Classification of Liquid Glucose:The primary issue was the classification of liquid glucose. The appellants argued that the product should be classified under sub-heading 1702.30 as 'sugar syrups not containing added flavouring or colouring matter,' while the authorities classified it under sub-heading 1702.19 as 'Other sugars.' The Tribunal noted that the classification was based on test reports from the Chief Chemist and Deputy Chief Chemist, which were inconsistent. The Tribunal found that the adjudicating authority had been prejudiced by these reports and that the matter required reconsideration.3. Denial of Cross-examination of the Chief Chemist:The appellants contended that the denial of cross-examination of the Chief Chemist deprived them of the opportunity to establish the correct chemical composition of the product. The Tribunal emphasized that the right to cross-examine is intrinsic to the principles of natural justice, especially when an adverse finding is based on expert evidence. The Tribunal cited various judicial precedents to support the necessity of cross-examination in such cases.4. Retrospective Application of Board's Circular:The appellants argued that the Board's circular directing the classification of liquid glucose under sub-heading 1702.19 should apply prospectively from 11-3-1993 and not retrospectively. The Tribunal agreed, noting that the circular stated that liquid glucose 'shall henceforth be classified under sub-heading 1702.19,' indicating prospective application.5. Principles of Natural Justice:The Tribunal found that the denial of cross-examination and the reliance on the Chief Chemist's report without allowing re-testing violated the principles of natural justice. The Tribunal highlighted that justice must not only be done but must also be seen to be done. The original authority's refusal to allow cross-examination was deemed unsustainable in law.Separate Judgments:- Majority Opinion (S. Kalyanam and K. Sankararaman):The majority held that the denial of cross-examination and the reliance on the Chief Chemist's report without re-testing violated the principles of natural justice. They granted the waiver of pre-deposit and remanded the matter to the original authority for reconsideration.- Dissenting Opinion (V.P. Gulati):The dissenting member argued that there was no denial of natural justice as the appellants had not contested the chemical composition results. He maintained that the lower authorities had independently applied their minds and that the classification under 1702.19 was prima facie correct. He suggested a pre-deposit of Rs. 5,00,000/-.Final Order:In light of the majority view, the Tribunal dispensed with the pre-deposit of duty and remanded the matter to the original authority for reconsideration.
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