2003 (10) TMI 206 - AT - Central Excise

Summary

Issues:
Classification of Sodium Carboxy Methyl Cellulose under CETA sub-headings 3912.31 and 2907.90, non-furnishing of test report, waiver of pre-deposit of duty, remand of the case for fresh decision.

Classification Issue:
The case involved a dispute regarding the classification of Sodium Carboxy Methyl Cellulose manufactured by the appellants under CETA sub-heading 3912.31 as held by the department, instead of under CETA sub-heading 2907.90 as claimed by the appellants. The Tribunal found that the test report relied upon by the department was not furnished to the appellants, leading to a lack of clarity. The Tribunal decided to take up the appeal for hearing after waiving the pre-deposit of duty, with the consent of both sides.

Historical Background Issue:
The case had a complex history dating back to April 1986 when a show cause notice was issued proposing the classification of the product under Chapter Heading 39.12. Various orders were passed, including a remand by the Commissioner (Appeals) directing fresh testing and communication of the test report to the appellants. However, it was noted that the exact test report of the appellants' product was not set out in the orders, and the test results of a different product were applied to the products in dispute. Due to the absence of the test report and the appellants' claim of non-communication of test results, the Tribunal decided to remand the case to the adjudicating authority for a fresh decision.

Remand Decision Issue:
After considering the arguments from both sides and the lack of clarity regarding the test report, the Tribunal decided to set aside the impugned order and remand the case to the jurisdictional adjudicating authority. The adjudicating authority was directed to communicate a copy of the test report regarding the appellants' products and pass fresh orders after hearing them. The appeal was allowed by remand, emphasizing the importance of providing the appellants with the necessary information for a fair decision.

In conclusion, the judgment addressed the classification issue of Sodium Carboxy Methyl Cellulose, the historical background of the case with previous orders and testing procedures, and the decision to remand the case for a fresh decision due to the lack of communication of the test report and the application of test results from a different product. The Tribunal highlighted the importance of transparency and proper communication of test results to ensure a fair adjudication process.