2017 (4) TMI 635 - SC - Customs

Classification of Imaging Plates, IP Cassettes and FCR Capsula - benefit of N/N. 21/2002 dated 01.03.2002 - Held that - the learned Tribunal seems to have found a case which was not even urged by any of the parties before it, namely, that Imaging Plates and IP Cassettes merit classification under Chapter 37 - the order of the learned Tribunal should be interfered with and the matter be remitted for a decision de novo - matter on remand.

Summary

Issues:
Classification of Imaging Plates, IP Cassettes, and FCR Capsula under Chapter 90 CTH 90189099 and Chapter 37 CTH 370110 respectively. Interpretation of notification No.21/2002 dated 01.03.2002. Liability for payment of additional duty of customs under Serial No.357B.

Analysis:
The Supreme Court heard an appeal arising from a final order passed by the Customs, Excise & Service Tax Appellate Tribunal regarding the classification of Imaging Plates, IP Cassettes, and FCR Capsula. The Tribunal had previously classified Imaging Plates and IP Cassettes under Chapter 90 CTH 90189099 based on a previous case, but in the present case, it classified them under Chapter 37 CTH 370110, which was challenged in the appeal. Despite the change in classification, the Tribunal allowed the benefit of notification No.21/2002 dated 01.03.2002 to Imaging Plates and IP Cassettes. However, the appellant would still be liable for additional duty under Serial No.357B. The Supreme Court noted that the Tribunal should have sought the views of a larger Bench if it disagreed with the previous decision and should not have raised a new classification issue not raised by the parties. Therefore, the Court set aside the Tribunal's order and remitted the matter for a fresh decision, emphasizing the need for judicial discipline and proper procedure.

The Supreme Court emphasized the importance of following judicial discipline and proper procedures by quasi-judicial authorities. It noted that if a Tribunal disagrees with a previous decision, it should seek the views of a larger Bench rather than unilaterally changing the classification. The Court highlighted that the Tribunal's decision to classify Imaging Plates and IP Cassettes under Chapter 37 was not raised by the parties and should have been addressed properly. Therefore, the Court set aside the Tribunal's order and remitted the matter for a fresh decision, leaving all contentions open for both parties.

In conclusion, the Supreme Court allowed the appeal, set aside the Tribunal's order, and remitted the matter for a fresh decision. The Court emphasized the need for judicial discipline and proper procedure in handling classification issues and directed the Tribunal to decide the matter expeditiously while leaving all contentions open for the parties involved.