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2023 (8) TMI 1131 - AT - Central ExciseClassification of goods - Neem Blended Organic Manure Gronimix - classifiable under CETH 31010099 or under CETH 38089910? - extended period of limitation - penalty - violation of principles of natural justice - HELD THAT:- The issue of classification is not free from doubts and it is a debatable one. In the same pamphlet of the product it describes the product as fertilizer and on the same pamphlet it also mentions that the product is pesticide. Moreover, only because the product Gronimix is made pre-dominantly by Neem, it cannot be conclusively said that because of this reason the good is fertilizer as there are pesticides/insecticides made of Neem/Neem oil. The details mentioned in the pamphlet/advertisement of the product were not considered properly. Though there are statements of dealers which states that the product is used as insecticide/pesticide but those dealers have not been cross examined as requested by the appellant. When there are evidence available in the case it becomes incumbent on the adjudicating authority to allow the cross – examination of the witnesses. The adjudicating authority has seriously defied the mandatory provision of Section 9D of Central Excise Act, 1944. The appellant has relied upon the test report which states that the product Gronimix is not a pesticide. In the present case the statement of farmers were also recorded who have stated that the Gronimix is used as a fertilizer which was ignored by the Adjudicating Authority - the Adjudicating Authority grossly violated the principle of natural justice while passing the impugned order. The appeal is allowed by way of remand for passing a fresh de novo order after considering various materials available on record in proper prospective.
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