Natural justice bars tariff reclassification without notice to the opposing party; unsanctioned reclassification was set aside and remitted.

An appellate authority cannot finally reclassify goods under a tariff heading that was neither in dispute nor put to the opposing party without notice, because such action breaches fair hearing and natural justice. Here, the lower appellate authority adopted a different tariff heading on its own assessment of the sample and use of the product, without notifying the Revenue. The reclassification was therefore held to suffer from a basic procedural infirmity, was set aside, and the matter was remitted for fresh adjudication in accordance with natural justice.

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Issues: Whether the appellate authority could reclassify the goods under a tariff heading not in dispute and without giving notice to the Revenue, and whether the order reclassifying the goods could be sustained.

Analysis: The alternate plea before the lower appellate authority was for classification under one heading, but the authority adopted a different tariff heading on its own assessment of the sample and use of the product. Since the Revenue had not been put on notice regarding that heading, the reclassification was held to suffer from a basic infirmity and to offend the requirements of fair hearing.

Conclusion: The reclassification order was unsustainable and was set aside.

Final Conclusion: The matter was sent back for fresh adjudication by the appellate authority in accordance with natural justice.

Ratio Decidendi: An appellate authority cannot finally classify goods under a tariff heading that was neither in dispute nor put to the opposing party without notice.

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