2017 (7) TMI 378 - AT - Customs

Classification of the coal imported - whether it was bituminous coal or steam coal? - Held that - On this very issue co-ordinate Benches of the CESTAT had taken divergent views which led to the matter being referred to a Larger Bench of the Tribunal - the matters are remanded back to the adjudicating authority to reconsider the issue afresh after following the principles of natural justice - appeal allowed by way of remand.

Summary

Issues:
Classification dispute - Bituminous coal vs. steam coal.

Analysis:
The judgment by the Appellate Tribunal CESTAT Hyderabad revolves around a classification dispute concerning the imported coal, specifically whether it should be categorized as bituminous coal or steam coal. The Tribunal notes that previous decisions by co-ordinate Benches of the CESTAT had conflicting views on this matter, prompting a reference to a Larger Bench for resolution. The Larger Bench, after disposing of the reference applications, granted liberty to the applicants/assessees to return to the Tribunal following a final verdict from the Apex Court. This step was taken due to the contradictory decisions on the issue by co-ordinate Benches, necessitating the involvement of the Larger Bench.

In light of this development, cases pending before various co-ordinate Benches were remanded back to the adjudicating authority. For instance, a case involving Tamilnadu Generation & Distribution Corporation Ltd. was remanded in Final Order No.40119/2017, citing decisions from the Bangalore Bench and the Chennai Bench. The Tribunal emphasized the importance of awaiting the Apex Court's judgment before proceeding further, as seen in the reference applications that were disposed of with liberty granted to the applicants/assessees.

During the hearing, the Tribunal considered the representation made by the Revenue's special representative, highlighting the appeal process in cases like Tamilnadu Newsprint & Papers Ltd. vs. CC, Tuticorin. Following the precedent set by the Apex Court in the case of UOI vs. West Coast Paper Mills Ltd., the Tribunal remanded the matter back to the adjudicating authority for appropriate orders based on the outcome of the pending civil appeals. This decision aimed to ensure the proper application of natural justice in the adjudication process.

Consequently, the Tribunal allowed the appeal by way of remand, setting aside the impugned orders in all appeals and remanding the matters back to the adjudicating authority. The appellants were granted the opportunity to raise all issues alleged in the show cause notices, defend their positions, and present additional submissions in line with the principles of natural justice. The Tribunal clarified that the adjudication of these matters would proceed after the Apex Court's decision in the Coastal Energy Pvt Ltd. case, maintaining an open stance on all issues without expressing any opinion on the case's merits. All other applications filed by the Revenue in the appeal were also disposed of during the proceedings.