2002 (8) TMI 732 - AT - Customs

Natural justice - Show cause notice served but remained undelivered - Import - T.V. components for colour television

Summary

Issues:
Appeal against order-in-original dated 5-12-2001 passed by the Commissioner of Customs.
1. Proper opportunity and rules of natural justice not provided.
2. Dispute over goods description, classification, and duty chargeable.

Analysis:

Issue 1: Proper Opportunity and Rules of Natural Justice
The appellants filed an appeal against the impugned order-in-original dated 5-12-2001 passed by the Commissioner of Customs. The appellants, through their Customs House Agent, filed a bill of entry for clearance of 5000 sets of 'Electronic Components for Colour Television Model 2111' at a declared value of Rs. 80,56,026. The goods were supplied by M/s. TCL Marketing Ltd., Hong Kong. The goods were declared as sets, but the description was found ambiguous. The appellants provided detailed invoices with a list of components and their values. However, the show cause notice was undelivered to the appellants, and the Commissioner proceeded to pass the impugned order without their response. The appellants contended that they were not afforded a proper opportunity and there was a breach of rules of natural justice.

Issue 2: Dispute Over Goods Description, Classification, and Duty Chargeable
The appellants raised contentions regarding the dispute over the description of the goods, their classification, and the duty chargeable. They argued that the matter should be decided in accordance with the Larger Bench decision of the Tribunal in the case of M/s. Sony India Ltd. The Tribunal found that the show cause notice was sent twice to the appellants but remained undelivered. Despite no response from the appellants, the Tribunal decided that one opportunity should be given to them to present their defense. The Tribunal also determined that the matter regarding the goods' description, classification, and duty payable deserved to be readjudicated based on the Larger Bench decision of the Tribunal in the case of M/s. Sony India Ltd. Consequently, the impugned order was set aside, and the matter was remanded to the adjudicating authority for a fresh decision after affording a reasonable opportunity of hearing to both sides.

In conclusion, the appeal was allowed by way of remand, emphasizing the importance of providing a fair opportunity to the appellants and ensuring that the dispute over goods description, classification, and duty chargeable is resolved in accordance with the law and relevant precedents.