Natural justice in tariff classification requires notice of the proposed heading before an adverse reclassification is adopted.

An alternative tariff classification may be adopted by the proper officer, but the assessee must be put to notice of the proposed classification before any adverse determination is made. Where the short levy notice referred only to Chapter Heading 85 and the authorities proceeded to classify the goods under Heading 82.01/04 without such notice, the proceedings breached natural justice. The classification order could not be sustained on that basis, and the matter was remanded for fresh decision after hearing the appellant and issuing a speaking order.

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Issues: Whether the goods could be classified under a heading different from the one proposed in the short levy notice without giving the appellant notice of the alternative classification, and whether the matter required remand.

Analysis: The short levy notice proposed classification only under Chapter Heading 85, while the adjudicating and appellate authorities proceeded to classify the goods under Heading 82.01/04. Although an alternative classification may legally be adopted by the proper officer, the assessee must be put to notice of the proposed classification. Since no notice was issued for the classification ultimately adopted, the proceedings suffered from violation of the principles of natural justice.

Conclusion: The classification order could not be sustained on the basis adopted, and the matter was remanded to the jurisdictional Commissioner of Customs (Appeals) for fresh decision after giving the appellant an opportunity of hearing and passing a speaking order.

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