9911796707
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Issues:
- Whether non-mention of ship breaking scrap in the classification list amounts to suppression of facts. - Violation of principles of natural justice in the adjudication process. Analysis: 1. Non-Mention of Ship Breaking Scrap: The dispute revolved around whether the failure to specify ship breaking scrap in the classification list constituted deliberate suppression of material facts by the appellants. The contention was that ship breaking scrap was only re-rollable material and not melt scrap. Prior to 1-3-1986, there was no separate sub-heading for ship breaking scrap in the Tariff. The appellants argued that their inputs were correctly described as re-rollable scrap, which covered ship breaking scrap as well. They emphasized that there was no intention to evade duty, and audits had not raised any objections. The Tribunal acknowledged that no separate classification existed for ship breaking scrap before 1-3-1986. Citing the Supreme Court's stance on suppression of facts, the Tribunal found no evidence of deliberate withholding of information by the appellants. Consequently, the Tribunal directed the appellants to furnish a bank guarantee for the duty amount post 1-3-1986, considering the possibility of duty waiver under Section 11C. 2. Violation of Principles of Natural Justice: The appellants raised concerns regarding the violation of natural justice principles during the adjudication process. They argued that they were denied a personal hearing despite requesting only one adjournment. The Tribunal noted that the appellants had not availed themselves of the opportunity for a personal hearing, and thus, the denial of opportunity could not be claimed at this stage. The Respondent contended that full details of manufactured goods and inputs were necessary for claiming exemption under the notification. The absence of ship breaking scrap description in the classification list was highlighted as crucial information for exemption eligibility. The Respondent argued that ship breaking scrap was not specified in the Tariff or the Exemption Notification before specific amendments. The Tribunal considered the Respondent's arguments but ultimately found in favor of the appellants on the suppression of facts issue, leading to the decision on the bank guarantee for duty payment post 1-3-1986. 3. Conclusion: The Tribunal's detailed analysis of the classification issue emphasized the lack of legal compulsion to mention ship breaking scrap specifically in the absence of a separate sub-heading in the Tariff. The decision to require a bank guarantee for duty payment post 1-3-1986 reflected a balanced approach considering the possibility of duty waiver. The judgment highlighted the importance of factual accuracy in classification lists for exemption claims and the need for clarity in input descriptions. The principles of natural justice were addressed in the context of opportunities for personal hearings, balancing the rights of the appellants with procedural requirements.
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