2015 (10) TMI 1843 - SC - Central Excise

Classification of goods - Classification of Woven fabrics of silk, silk-wool fabrics - Classification under Chapter sub-heading 5111.29 or under Chapter sub-heading 5005.90/5005.20 - Held that - The only objection raised by the Revenue is that when the issue was remitted back for re-determination it should have been open remand and should not have remarked that Dry Weight Standards should be applied and even in respect of that the matter should have been left open for the Adjudicating Authority to take a call thereof. This suggestion is accepted by the learned counsel for the assessee. We, therefore, modify the directions with the observations that on remand when the matter is to be re-determined by the Adjudicating Authority, it is an open remand and it would be permissible for the Adjudicating Authority to go into all the relevant issues in determining the classification. - Appeal disposed of.

Summary

Issues: Classification of "Woven fabrics of silk, silk-wool fabrics" under Chapter sub-heading 5111.29 as claimed by Revenue or under Chapter sub-heading 5005.90/5005.20 as argued by the assessee.

Analysis:
The Supreme Court judgment dealt with the issue of classification of "Woven fabrics of silk, silk-wool fabrics." The Tribunal had remanded the case back to the Assessing Authority for re-determination proceedings. The Tribunal's order stated that the correct classification of the fabrics should be determined as per Dry Weight Standards, and duty demands should be assessed accordingly. The Revenue objected to this, arguing that the issue should have been an open remand without specifying the application of Dry Weight Standards. The Court noted this objection and agreed that the remand should be open without specific instructions on Dry Weight Standards. The Court modified the directions, allowing the Adjudicating Authority to consider all relevant issues in determining the classification on remand.

In conclusion, the Supreme Court disposed of the appeals by modifying the directions for re-determination of the classification of "Woven fabrics of silk, silk-wool fabrics." The Court clarified that the remand should be open, giving the Adjudicating Authority the discretion to consider all relevant issues in determining the classification without specific instructions on applying Dry Weight Standards.