1996 (5) TMI 230 - AT - Customs

Summary

Issues: Classification of imported goods under tariff sub-heading 2912.41 or 2912.49, valuation of the goods, ex parte order, technical literature evidence, chemical structure comparison, spectroscopy test, re-adjudication by the original authority, principles of natural justice.

The judgment by the Appellate Tribunal CEGAT, CALCUTTA, involved the classification of imported goods described as "Lignarome (Aromatic Chemical)" with a specific chemical structure under tariff sub-heading 2912.41 as "Vanillin (4-Hydroxy 3-Methoxy Benzaldehyde)" or under sub-heading 2912.49 as "other" within the group heading of aldehyde-ethers, aldehyde-phenols, and aldehydes with other oxygen function. The issue of valuation of the goods was also raised. The impugned order was passed ex parte due to the appellant's failure to provide a detailed reply and attend the personal hearing, primarily because certain requested documents were not provided. The adjudicating Commissioner confirmed the classification and valuation based on the available information.

The appellant, represented by an advocate, contended that the goods should not be classified as "Vanillin" under sub-heading 2912.41 as the chemical structure differed from the statutory description. Technical literature from "The MERCK Index" and a textbook of organic chemistry were submitted to support this argument. The appellant emphasized the absence of data sheets on the chemical structure in the test reports relied upon by the authority and the necessity of spectroscopy for determining the chemical structure accurately. Regarding valuation, it was argued that the goods' unique chemical structure and properties warranted a separate valuation method, different from the comparison with "Vanillin" as done by the department.

The Tribunal noted that the ex parte order did not consider the appellant's detailed pleas and evidence. Therefore, the matter required re-adjudication by the original authority, the Commissioner of Customs, Calcutta, to consider all new arguments on classification and valuation. The Commissioner was directed to investigate the availability of data sheets and spectroscopy tests from the laboratories, assess whether the imported goods could be considered derivatives of "Vanillin," and adhere to the principles of natural justice during the re-adjudication process. The Tribunal allowed the appeals by remand, expecting a prompt resolution due to the case's importation date in October 1993.