2015 (3) TMI 1076 - AT - Customs

Demand of differential duty - classification of Ship Stores, Bunkers, Movable Gears on board - Provisional assessment - held that - Commissioner (Appeals) passed the order without going into the merits. Both the parties agreed that the matters should be remanded to the Commissioner (Appeals). Accordingly, we set aide the impugned order and the matters are remanded to the Commissioner (Appeals) to decide the appeal on merit after hearing the appellants - Decided in favour of assessee.

Summary

Issues:
Classification of Ship Stores, Bunkers, Movable Gears for importers, Compliance with stay order under Section 129E of the Customs Act 1962, Tribunal's direction for pre-deposit, Setting aside of stay order by the Hon'ble Gujarat High Court, Commissioner (Appeals) dismissing appeals without considering merits, Remand of matters to Commissioner (Appeals) for fresh decision.

Classification of Ship Stores, Bunkers, Movable Gears:
The appellants had imported Vessels/Ships for breaking, leading to a dispute over the classification of Ship Stores, Bunkers, and Movable Gears on board. The Adjudicating Authority confirmed the final assessment, requiring the appellants to pay differential duty. The Commissioner (Appeals) dismissed the appeals due to non-compliance with the stay order under Section 129E of the Customs Act 1962.

Compliance with Stay Order under Section 129E:
The Tribunal had directed the appellants to pre-deposit a certain amount against the impugned orders. However, the Hon'ble Gujarat High Court set aside the stay order passed by the Tribunal in a related case. This decision highlighted discrepancies in the Tribunal's orders and the need for consistency in handling appeals.

Setting Aside of Stay Order by the Hon'ble Gujarat High Court:
The High Court's judgment emphasized the importance of uniformity in decisions by different benches of the Appellate Tribunal. It quashed the impugned orders and remanded the matters to the Appellate Tribunal for fresh consideration in line with previous orders passed by other benches.

Remand of Matters to Commissioner (Appeals) for Fresh Decision:
Both parties agreed that the matters should be remanded to the Commissioner (Appeals) for a decision on the merits. The Tribunal set aside the impugned order and directed the Commissioner (Appeals) to decide the appeals after hearing the appellants, keeping all issues open for consideration. Consequently, both appeals were allowed by way of remand for further proceedings.