2011 (8) TMI 694 - AT - Customs

Classification - Omni Flow computers classifiable under heading 9026 1090 OR 9032 8990 - Commissioner after reproducing Chapter Note 7 with Chapter 19 classified the goods under heading 9032 - Held That - There was no discussion by commissioner as to how the goods imported by the appellants fit into the said Chapter Note, further no speaking order was passed by AO. On above facts we remand the case to the original authority.

Summary

Issues:
Classification of goods imported under Customs Tariff Heading 9026 1090 or 9032 8990, Failure to pass a speaking order by the original adjudicating authority, Consideration of submissions by the appellate authority, Proper opportunity for defense provided by Commissioner (Appeals), Interpretation of Chapter Note 7 to Chapter 90(b) of the Tariff.

Analysis:
The judgment by the Appellate Tribunal CESTAT, DELHI involved the classification dispute of 'Omni Flow computers' imported by the appellants under Customs Tariff Heading 9026 1090 or 9032 8990. The appellants claimed concessional duty under notification No. 24/05-Cus, Sr. No.4, while the revenue asserted a higher duty rate under Notification No. 13/05-Cus. The issue arose when the revenue objected to the classification adopted by the appellants, leading to assessed Bills of entry. Despite a request for a speaking order to understand the basis of reclassification, no appealable orders were passed, prompting the appellants to file appeals rejected by the Commissioner (Appeals).

The appellants contended that their request for a speaking order was ignored, and the submissions made were not adequately considered by the appellate authority. The appellate authority's decision was based on Chapter Note 7 to Chapter 90(b) of the Tariff, without a detailed discussion on how the goods fit into the said Chapter Note. The Appellate Tribunal noted the lack of proper discussion on the goods' classification and the failure to address other pleas advanced by the appellants, agreeing that the impugned order should be set aside.

The Appellate Tribunal highlighted the duty of the original adjudicating authority to pass a speaking order as per Section 17 of the Customs Act and Board instructions. Consequently, the impugned order was set aside, and the matter remanded to the original authority for a fresh assessment, ensuring the appellants have an opportunity to present their case effectively. The appeals were allowed by way of remand, emphasizing the importance of a thorough and reasoned decision-making process in customs classification disputes.