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2015 (6) TMI 296 - HC - Customs


Issues:
Classification of imported goods for concessional duty under Customs Notification No. 25/99, dated 28-2-1999.

Detailed Analysis:

Issue 1: Classification of Imported Goods
The petitioner, a Public Limited Company manufacturing electrical equipment, sought a writ to quash an order by the respondent regarding the classification of imported goods for concessional duty under Customs Notification No. 25/99. The petitioner applied for the import of parts for the manufacture of Relays under specific tariff items. The respondent raised concerns about the classification of the imported items and directed the petitioner to provide detailed information and technical write-ups. The respondent later refused to grant the certificate for concessional duty, pending expert opinion from IIT Chennai. The petitioner challenged this decision through a writ petition.

Issue 2: Adjudication Process
The High Court acknowledged that the classification issue could not be adjudicated by the Writ Court but needed to be decided by the authorities. The respondent produced an expert opinion post the impugned proceedings, indicating that the relays could be classified as simple trip/protection relays. It was noted that the authority did not conclusively adjudicate the issue, and the petitioner should have been given the opportunity to present all materials for a thorough adjudication. The court observed that the procedure followed by the respondent was summary in nature, and the impugned order was passed to safeguard revenue pending final adjudication.

Conclusion:
The High Court disposed of the writ petition by directing the respondent to issue a show cause notice to the petitioner, clearly outlining the facts and documents relied upon within two weeks. The petitioner was granted the opportunity to respond within two weeks, followed by a personal hearing within four weeks for the classification issue. All communications relied upon by the Department, including those sent to IIT Madras, were to be shared with the petitioner. The court emphasized that the observations made in the impugned proceedings should not be held against the petitioner until the issue is fully adjudicated.

 

 

 

 

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