1990 (7) TMI 204 - AT - Customs

Summary

Issues:
1. Jurisdictional dispute regarding the classification of goods under the Customs Act, 1962.
2. Permission to raise an additional ground of appeal based on classification dispute.
3. Interpretation of the power of the Tribunal to allow new claims or additional grounds of appeal.

Detailed Analysis:
The judgment by the Appellate Tribunal CEGAT, New Delhi involved a jurisdictional dispute regarding the classification of goods under the Customs Act, 1962. The appeal was filed by M/s. Diamond Cements Ltd. against the order passed by the Additional Collector of Customs, Bombay. The respondent, represented by Shri M.S. Arora, raised a preliminary objection stating that no valuation or rate of duty was involved, and jurisdiction vested with the regional bench. However, the appellant, represented by Shri Kamal Parshurampuria, argued that the special bench had jurisdiction as the classification was in dispute. The appellant sought permission to raise an additional ground of appeal related to the classification issue, emphasizing that the whole case rested on the classification under the Customs Act and ITC. The respondent opposed this permission, claiming that the impugned order did not touch the classification issue.

The Tribunal considered the arguments from both sides and examined the facts and circumstances of the case. Referring to a judgment by the Andhra Pradesh High Court, the Tribunal acknowledged that a fresh plea could be taken before the Tribunal for the first time based on material already on record. Citing a Supreme Court judgment, the Tribunal allowed the appellant's request to raise the additional ground of appeal. The additional ground sought a specific classification of the imported goods under heading 8503 or 8483.10, rather than 8483.30. The Tribunal held that the imported goods were components and parts for a specific use and could not be classified as bearings/bushes under 8483.30. Therefore, the miscellaneous application for raising the additional ground of appeal was allowed.

In conclusion, the judgment addressed the jurisdictional dispute over the classification of goods under the Customs Act, 1962, and the Tribunal's power to permit the raising of additional grounds of appeal based on classification issues. The decision highlighted the importance of allowing new claims or additional grounds at the appellate forum, emphasizing the need for sufficient material on record to support such claims.