1998 (6) TMI 215 - AT - Central Excise

Summary

Issues: Classification of Tarpaulin Fabrics under Tariff Heading 52.04 or sub-heading 5906.90, waiver of pre-deposit of duty, non-speaking order by Commissioner, violation of principles of natural justice, remand for de novo consideration.

Classification Issue:
The appeal concerns the classification of "Tarpaulin Fabrics" under Tariff Heading 52.04 as claimed by the assessee or under sub-heading 5906.90 as claimed by the department. The appellant sought waiver of pre-deposit of duty amount confirmed under Rule 9(2) of Central Excise Rules, 1944. The learned Advocate argued that the item was considered exempted by the party, leading to the absence of a classification list and license. The Commissioner's order was contested for not considering the evidence presented by the appellants and relying solely on Note (5) to Chapter 59. The Tribunal granted waiver of pre-deposit in similar cases and remanded for de novo consideration, emphasizing the need to examine evidence and ensure natural justice principles were upheld.

Non-Speaking Order Issue:
The Commissioner's order was criticized for being a non-speaking order as it did not address the evidence provided by the appellants or the time-barred nature of the demands. The Tribunal found that the Commissioner had not examined the evidence, leading to a violation of natural justice principles. The Tribunal directed the Commissioner to reconsider the evidence, provide detailed findings, and ensure all evidence was considered, including expert opinions. The Tribunal emphasized the importance of a thorough examination of evidence and adherence to principles of natural justice.

Remand for De Novo Consideration Issue:
The Tribunal, after careful consideration, allowed the appeal by remand, directing the Commissioner to re-examine the evidence and facts in light of the Tribunal judgment. The Tribunal clarified that it was not differing with previous judgments but emphasizing the need for a detailed reconsideration of evidence and comparison with Tribunal decisions. The Commissioner was instructed to follow the same procedure as in other cases, ensuring a comprehensive re-adjudication process. The appeal was allowed by remand, highlighting the importance of examining evidence thoroughly and ensuring a just and proper course of action.

This judgment addresses the classification issue of "Tarpaulin Fabrics," the necessity of waiver of pre-deposit, concerns regarding non-speaking orders by the Commissioner, the violation of natural justice principles, and the remand for de novo consideration to ensure a comprehensive examination of evidence and adherence to legal procedures.