2017 (7) TMI 783 - AT - Customs

Classification of imported coal - whether it was bituminous coal or steam coal? - Held that - the impugned order in this appeal is set aside and the matter is remanded back to the adjudicating authority to reconsider the issue afresh after following the principles of natural justice. The appellant is at liberty to raise all the issues alleged in the show cause notices and defend them - appeal allowed by way of remand.

Summary

Issues:
Classification of imported coal - bituminous coal or steam coal.

Analysis:
The appeal before the Appellate Tribunal CESTAT Hyderabad involved a dispute regarding the classification of imported coal, specifically whether it should be categorized as bituminous coal or steam coal. The Tribunal noted that there were conflicting views on this issue among different benches of the CESTAT, prompting a reference to a Larger Bench for resolution. Following this reference, the Larger Bench granted liberty to the applicants/assessees to return to the Tribunal after obtaining a final verdict from the Apex Court. Consequently, cases pending before various benches were remanded back to the adjudicating authority for reconsideration.

In a specific case mentioned in the judgment, the Tribunal highlighted that a decision had been made against the assessee by the Bangalore Bench, which was under appeal at the Apex Court. The Tribunal emphasized the importance of awaiting the final judgment from the Apex Court before proceeding further on the matter. The Tribunal also mentioned that a similar case involving Tamilnadu Newsprint & Papers Ltd. had been appealed to the High Court of Madras and subsequently to the Apex Court, underscoring the need to follow the legal precedents set by higher courts.

Based on the principles established in previous legal cases, the Tribunal remanded the matter back to the adjudicating authority to pass an appropriate order in accordance with the outcome of the judgments in the civil appeals pending before higher courts. The Tribunal emphasized the appellant's right to natural justice during the adjudication process and directed the adjudicating authority to consider all issues raised by the appellant, including any additional submissions that may support their case.

Ultimately, the Tribunal allowed the appeal by way of remand, setting aside the impugned order and instructing the adjudicating authority to reconsider the issue afresh after following the principles of natural justice. The Tribunal made it clear that the adjudication would proceed once the Apex Court reached a decision in the relevant case, maintaining that no opinion on the merits of the case had been recorded, and all issues remained open for further consideration. Additionally, the Tribunal disposed of all other applications filed by the Revenue in connection with the appeal.