2008 (1) TMI 758 - AT - Central Excise

Summary

Issues:
1. Modification of Final Order No. 507-560/07 for importers of machines declared as "Computerised Embroidery Pattern-making Machine with Plotter."
2. Difficulties faced by the Commissioner in carrying out the direction to inspect machines-in-operation.
3. Prayer for modification of the directions by the department.
4. Application by M/s. Silver Stitch regarding their grievance not being considered in the final order.

Analysis:
1. The judgment involves applications by the Commissioner of Customs seeking a modification of Final Order No. 507-560/07 for importers of machines declared as "Computerised Embroidery Pattern-making Machine with Plotter." The Tribunal had set aside the impugned orders and remanded the cases for de novo adjudication, with specific directions to inspect the machines-in-operation and obtain reports from competent experts. The department faced difficulties in carrying out these directions due to the number of premises to be visited and their locations. The Commissioner requested modification of the directions to involve jurisdictional officers or the Directorate of Revenue Intelligence for inspections.

2. The Commissioner expressed challenges in visiting multiple premises for machine inspections, requesting that jurisdictional officers or the Directorate of Revenue Intelligence conduct the inspections along with experts. The Tribunal considered the difficulties genuine and modified the directions in the final order accordingly. The revised direction required authorities to inspect machines-in-operation through local counterparts and competent experts from agencies like the Central Machine Tools Institute or TECSOK. It was clarified that for numerous machines of the same model, inspecting a representative sample would suffice.

3. M/s. Silver Stitch filed an application stating that their grievance was not considered in the final order, as they were unable to attend the hearing. They claimed that the machines were imported by another entity, not by them, which was not accounted for in the final order. The Tribunal noted that M/s. Silver Stitch could raise their grievance before the adjudicating authority during de novo adjudication, as directed in the modified final order. Consequently, the application by M/s. Silver Stitch was dismissed.

4. In conclusion, the applications by the Commissioner were allowed, and the final order was modified to address the difficulties faced in inspecting the machines-in-operation. The revised direction specified the involvement of jurisdictional officers or the Directorate of Revenue Intelligence for inspections, along with competent experts. The judgment highlighted the importance of providing a reasonable opportunity for parties to be heard and access to inspection reports during the adjudication process.