2014 (1) TMI 4 - AT - Central Excise

Classification of goods - Held that - In the show cause notice it was not the issue before adjudicating authority below to classify the product under Chapter Sub-heading 4010.90 of the Central Excise Tariff Act - The issue before the adjudicating authority was whether the impugned product is classifiable under Chapter sub-heading 5603.00 or CH. 5910.00 - As per various judgments available it is held that no one can travel beyond the issue involved in show cause notice - The Commissioner (Appeals) has no power to travel beyond the show cause notice - The order of CCE(A) is set aside - Decided in favour of assessee.

Summary

Issues:
Classification of goods under Chapter Sub-heading 4010.90 of the Central Excise Tariff Act, 1985 based on a chemical test report. Jurisdiction of the Commissioner (Appeals) to classify goods beyond the scope of the show cause notice.

Analysis:
The appellant contested the classification of goods under Chapter Sub-heading 4010.90 by the Commissioner (Appeals) in contrast to the show cause notice proposing classification under Heading 5910.00. The appellant relied on previous tribunal decisions emphasizing that the adjudicating authority cannot go beyond the show cause notice. However, the Commissioner (Appeals) classified the goods under Chapter Sub-heading 4010.90, prompting the appeal. Despite the absence of the appellant during the hearing, the tribunal proceeded with the final disposal due to the narrow issue involved.

Upon careful consideration, the tribunal noted that the show cause notice specifically mentioned classification under Chapter Sub-heading 5910.00, whereas the adjudicating authority classified the goods under Chapter Sub-heading 5603.00. The dispute arose from a post-notice chemical test suggesting classification under 4010.90, which was not considered by the adjudicating authority. The tribunal highlighted that the issue before the adjudicating authority was solely the classification under Chapter sub-heading 5603.00 or CH. 5910.00, not 4010.90, as the show cause notice did not raise the latter.

Citing established legal principles, the tribunal emphasized that adjudication must stay within the confines of the issues raised in the show cause notice. Referring to precedents, the tribunal reiterated that no party can expand the scope of adjudication beyond what is specified in the notice. Consequently, the tribunal concluded that the Commissioner (Appeals) exceeded the authority by classifying the goods under Chapter Sub-heading 4010.90 and set aside the impugned order, allowing the appeal with any consequential relief.

In summary, the tribunal's judgment focused on the strict adherence to the issues raised in the show cause notice for classification of goods under the Central Excise Tariff Act, limiting the authority of adjudicating bodies to the matters specifically mentioned in the notice and preventing them from venturing beyond the scope of the notice during classification proceedings.