2009 (11) TMI 773 - AT - Customs

Summary

Issues involved: Appeal against differential duty demand on iron ore export, denial of re-test request by Commissioner, violation of principles of natural justice.

Appeal against differential duty demand: The Commissioner of Customs, Mangalore demanded a higher duty on an iron ore consignment exported by the appellants due to a discrepancy in the iron content ascertained on test compared to the declared content. The appellants argued that similar consignments on the same vessel matched the declared content and that there was an error in sampling for the impugned consignment. The appeal contended that the request for re-test by the Central Revenue Control Laboratory was denied without justifiable reasons. The Tribunal found that the impugned consignment was assessed at a higher duty rate based on the iron content being above 62%, as confirmed by the Chemical Examiner. The Tribunal held that the Commissioner should have allowed the re-test request and that the impugned order violated principles of natural justice. Consequently, the Tribunal vacated the order and remanded the matter to the Commissioner for a fresh decision after re-testing the sample by CRCL, ensuring the exporter's right to be heard.

Denial of re-test request by Commissioner: The Commissioner had denied the appellant's request for re-testing the iron ore sample by CRCL, New Delhi, despite acknowledging the request in the impugned order. The Tribunal observed that the denial lacked justifiable reasons and was in violation of principles of natural justice. The Tribunal held that the Commissioner should have permitted the re-test to ensure fairness and accuracy in the assessment of duty. Consequently, the Tribunal vacated the impugned order and remanded the matter for a fresh decision after re-testing the sample, with due consideration to the exporter's right to be heard.

Violation of principles of natural justice: The Tribunal found that the impugned order, which denied the appellant's request for re-testing the sample, was passed in violation of principles of natural justice. The Commissioner's failure to provide justifiable reasons for denying the re-test request was deemed unfair and contrary to procedural fairness. In light of this violation, the Tribunal vacated the order and remanded the matter for a fresh decision, emphasizing the importance of allowing the exporter's right to be heard before making a final determination.