1986 (12) TMI 137 - AT - Central Excise

Summary

Issues:
1. Whether scoured wool exported by the appellants was liable to export duty under the Export Tariff Schedule.
2. Whether the Additional Collector's decision was in conflict with a previous decision by the Central Government.
3. Whether the Additional Collector's reliance on opinions of experts without allowing cross-examination violated principles of natural justice.

Analysis:

1. The appeal involved the question of whether scoured wool exported by the appellants was subject to export duty under the Export Tariff Schedule. The goods were initially provisionally assessed and later classified as raw wool, leading to a demand for differential duty. The appellants contested this classification, citing previous decisions and expert opinions to support their position.

2. The appellants argued that a previous decision by the Central Government had determined that the scoured wool exported could not be considered raw wool subject to export duty. They contended that the Additional Collector was bound by this decision and should not have reached a conflicting conclusion. This raised issues of consistency and the binding nature of previous decisions.

3. The Additional Collector's reliance on opinions of purported experts without allowing the appellants to cross-examine them was challenged on the grounds of natural justice. The appellants argued that they were denied the opportunity to challenge the experts' status and opinions, which violated their right to a fair hearing. The Tribunal found merit in this argument and set aside the Additional Collector's decision, remanding the matter for re-adjudication with full opportunity for cross-examination and presentation of expert evidence.

In conclusion, the Tribunal's decision highlighted the importance of upholding principles of natural justice in administrative proceedings and ensuring parties have a fair opportunity to contest evidence and present their case. The judgment emphasized the need for procedural fairness and adherence to legal principles in decision-making processes.