1994 (11) TMI 261 - AT - Central Excise

Summary

Issues Involved:
1. Classification of 'Synthetic Soft Drink Concentrate'.
2. Consideration of subsequent events and Circulars.
3. Ex-parte decisions and procedural fairness.
4. Remand for de novo adjudication.

Summary:

1. Classification of 'Synthetic Soft Drink Concentrate':
The primary issue in these appeals is the classification of 'Synthetic Soft Drink Concentrate'. The authorities classified the product under Heading 2107.91 of the 1st Schedule to the Central Excise Tariff, 1985, while the appellants claimed it should be classified under Heading 33.23 or Heading 33.02.

2. Consideration of Subsequent Events and Circulars:
During the pendency of the appeals, the appellants filed applications to mold the relief based on subsequent events, specifically Circular No. 23/13/93 dated 20th December 1993 issued by the Central Board of Excise and Customs u/s 37B of the Central Excises and Salt Act, 1944. This Circular suggested classifying 'Synthetic Soft Drink Concentrate' under sub-heading 2107.99. The appellants argued that this subsequent Circular should be considered for their classification.

3. Ex-parte Decisions and Procedural Fairness:
Three cases were decided ex-parte by the Assistant Collector after rejecting the appellants' request to keep the matter pending. The appellants contended that their written submissions were not considered, and no test report was supplied to them. The Tribunal noted that the Collector (Appeals) did not address these procedural grievances in the impugned Order-in-Appeal.

4. Remand for De Novo Adjudication:
The Tribunal emphasized the judicial obligation to take notice of subsequent events to do complete justice. It was decided that the appropriate order would be to remand the case for de novo adjudication in light of the Circular dated 20th December 1993. Both parties would be given an opportunity to amend pleadings and produce additional evidence. The Tribunal cited several precedents where similar remands were ordered, including cases like Hindustan Lever Ltd. v. Collector of Central Excise and M/s. Standard Industries v. Collector of Central Excise.

Conclusion:
The Tribunal allowed the appeals and remanded the case to the Assistant Collector of Central Excise, Ahmedabad, for de novo adjudication in light of the Circular dated 20th December 1993, ensuring procedural fairness and adherence to natural justice principles.