2009 (9) TMI 775 - AT - Customs

Summary

Issues involved: Classification of imported Cocoa Powder under Chapter 1805 for clearance under DFIA licenses, appeal against the letter dated 14-5-2009 issued by the Commissioner of Customs.

Classification of Cocoa Powder under Chapter 1805:
The appeal was against a letter dated 14-5-2009 where the Commissioner of Customs classified the consignment of cocoa powder under Chapter 1805, denying the benefit of clearance under DFIA licenses. The appellants argued that this classification was detrimental to their case as DFIA licenses exempt them from paying any duty. The Tribunal noted that the letter lacked reasoning but was issued with the approval of the Commissioner. The Tribunal held that the Commissioner should have provided a speaking order and allowed the appeal by remanding the case back to the Commissioner for a proper hearing and a speaking order within two months.

Appeal under Section 29A of the Customs Act:
The JDR contended that the letter from the Commissioner was not a speaking order and therefore no appeal lies before the Tribunal under Section 29A of the Customs Act. However, the Tribunal found that despite the lack of reasoning in the letter, it was issued with the approval of the Commissioner, indicating a decision detrimental to the appellants. The Tribunal directed the Commissioner to pass a speaking order after hearing the appellants within two months, emphasizing the importance of following correct procedures and providing reasons for decisions.