2017 (12) TMI 1630 - AT - Customs

Recall of order - appeal was decided ex parte, without proper notice of hearing to the respondent - principles of natural justice - Held that - On perusal of the case records, we do not find any notice has been communicated to the respondent, fixing the date of hearing on 22-11-2016. Thus, we are of the view that Final Order dated 22-11-2016 passed by this Tribunal ex parte can be recalled in the interest of justice - Decided in favor of Revenue.

Summary

Issues Involved:
1. Recalling of a Final Order passed ex parte due to lack of proper notice of hearing.
2. Interpretation of whether imported jewellery mountings are considered as jewellery for the purpose of exemption under Notification No. 62/2004-Cus.

Analysis:

Issue 1: Recalling of Final Order
The judgment revolves around the application for recalling a Final Order passed ex parte in Appeal No. C/581/2010-CU(DB) on 22-11-2016. The respondent contended that no notice of hearing was issued by the Registry on the scheduled dates, leading to non-appearance. The Department argued that communication through the website should suffice as notice. The Tribunal noted the absence of a communicated notice for the hearing on 22-11-2016 and found non-compliance with the Customs statute in the service of the order. Consequently, the Tribunal allowed the application for recalling the Final Order in the interest of justice and restored the appeal to its original number.

Issue 2: Interpretation of Jewellery Mountings
The Tribunal delved into the issue of whether imported jewellery mountings should be classified as jewellery for the purpose of exemption under Notification No. 62/2004-Cus. Citing a previous decision in the case of V.K. International, the Tribunal concluded that mountings intended for gems are considered jewellery. Relying on this precedent, the Tribunal set aside the order of the Commissioner (Appeals) and allowed the appeal filed by the Revenue. The decision was made after considering the specific interpretation of the term "jewellery" in the context of the Customs statute and the relevant notifications.

In conclusion, the judgment addressed the procedural aspect of proper notice in recalling a Final Order and provided a detailed analysis on the classification of imported jewellery mountings as jewellery for the purpose of availing exemption under Notification No. 62/2004-Cus. The decision was based on legal interpretations and precedents set by previous cases, ensuring consistency in the application of customs laws.