Classification dispute remanded for fresh merits review after test report scrutiny and hearing the assessee on tariff heading.

The classification dispute was remanded because the lower authorities had not examined the merits and had relied mainly on approval of an earlier classification list. Fresh consideration was required on the test report and the assessee had to be given an opportunity to meet the proposed classification under the earlier tariff heading. The Assistant Collector was directed to decide the demand de novo after examining the classification issue on merits and hearing the assessee.

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Issues: Whether the classification dispute and demand required remand for fresh consideration on merits.

Analysis: The lower authorities had not examined the classification dispute on merits and had proceeded mainly on the basis of the approval of an earlier classification list. The dispute required consideration of the test report and an opportunity to the assessee to meet the proposed classification under the earlier tariff heading.

Conclusion: The matter was remanded to the Assistant Collector for de novo consideration of the demand after examining the merits of classification and giving the assessee an opportunity to defend its case.

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