2004 (2) TMI 114 - AT - Central Excise

Summary

Issues involved: Classification of product under Central Excise Tariff Act, 1985 based on the process of manufacture and reliance on Chemical Examiner's report.

Classification Issue:
The appellants appealed against the Commissioner of Central Excise's order classifying calcite powder with a coating of fatty matter under sub-heading 3824.90 instead of Chapter Heading 2505. The Commissioner relied on the report of the Chemical Examiner and the process of manufacture explained by the Director of the assessee.

Cross-examination Dispute:
The appellant requested to cross-examine the Chemical Examiner, which was denied by the Commissioner on the grounds that the Test Report was not relied upon in the show cause notice. The Revenue accepted this factual position.

Judgment Details:
The Tribunal found that the Commissioner indeed relied on the Chemical Examiner's report in deciding the classification issue, contrary to the denial of reliance on the Test Report in the show cause notice. Therefore, the refusal to allow cross-examination of the Chemical Examiner was deemed unsustainable. The impugned order was set aside, and the matter was remanded for fresh adjudication, with the appellants granted the right to cross-examine the Chemical Examiner and a personal hearing. The appeals were disposed of by way of remand for further proceedings.