Reasoned tariff classification and prior notice are required; unreasoned reclassification was set aside and remanded.

Classification of goods under Tariff sub-heading 1905.11 could not be sustained where the lower appellate authority gave no reasons for rejecting the assessee's claim to Tariff sub-heading 1905.90 and shifted to a different classification without prior notice. A classification decision must be reasoned and must afford the assessee a fair opportunity to meet the proposed basis of assessment. The impugned order was therefore set aside and the matter remanded to the Commissioner (Appeals) for fresh adjudication and a reasoned order on the proper tariff classification.

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Issues: Whether the order of the lower appellate authority, which classified the goods under Tariff sub-heading 1905.11 without giving reasons and without notice on the new classification, could be sustained, and whether the matter required remand for fresh adjudication.

Analysis: The order under challenge contained no reasons for preferring Tariff sub-heading 1905.11 over the assessee's claim for Tariff sub-heading 1905.90. It was also noted that the appellate authority had moved to a different classification without prior notice to the assessee. Such an order could not stand as a proper adjudication because the assessee was entitled to a reasoned decision on the disputed classification after fair opportunity of hearing.

Conclusion: The impugned order was set aside and the matter was remanded to the Commissioner (Appeals) for readjudication and for passing a reasoned order on the proper classification of the goods.

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