TMI Blog1987 (5) TMI 157X X X X Extracts X X X X X X X X Extracts X X X X ..... acid oil manufactured by the appellant was captively consumed and was classified under Item 68 of the Central Excise Tariff and therefore, was not assessable to any duty. The Special Bench of the Tribunal by judgment, dated 13-11-1984 in Appeal No. 732/81-C in the case of M/s. Kusum Products, Calcutta , 1985 (19) E.L.T. 479 (Trib.) held that acid oil is classifiable under Item 12 of the C.E.T. and not under T.I. No. 68 and on the basis of this ruling a show cause notice u/s 11A was issued on 29-8-1985 directing the appellant to show cause to the Asstt. Collector of Central Excise, Eluru as to why duty of Rs. 14,020/-should not be demanded under Section 11A of the Central Excises and Salt Act, 1944 (the Act for short) on the quantity of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t were. Even in such circumstances like the ruling of the Special Bench, CEGAT warranting change in the classification the same could be done only in a manner known to law. As rightly conceded by the learned S.D.R. Rule 173B Sub-clause (v) provides that when the dispute about the rate of duty has been finalised or for any other reason a modification of the rate is necessitated, the proper officer shall make such modification and inform the assessee accordingly. When on the basis of the ruling of a Court or a Tribunal that a modification or change in the classification becomes necessary, particularly to the detriment of the party like the appellant in conformity with the principles of natural justice, the Department should issue a show cause ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... party on notice of the same and without affording him an opportunity of being heard in that regard. It is one of the faces of principles of natural justice that an appealable order cannot be passed by a quasi-judicial authority without conforming to the basic legal requirement of giving a show cause notice to the aggrieved party. At this stage it is relevant to extract the observations of the Bench of this Tribunal in the case of Mettur Chemical and Industrial Corpn. Ltd. v. Collector of Central Excise, Coimbatore [reported in 1986(26) E.L.T. 756]. - Ordinarily, in the scheme of the Act and the Rules an assessment by a proper officer precedes the removal of manufactured goods from the place of manufacture - something expressly provided ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reported in 1982 E.L.T. 485(Bom.), would be relevant for consideration of the question arising in the present case. The Bombay High Court in that case held that, It would not be just and fair for the Excise authorities to decide the classification of a product merely by placing reliance on rulings of Division Bench. Justice requires that the Excise authorities must have material and evidence before them on the basis of which the said authorities may themselves come to a conclusion. Therefore, though the proper officer has been invested with the power to modify an approved classification list, if he thinks that classification list was wrongly approved, he can make such modification with prospective effect only after giving an opportun ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
