1998 (4) TMI 349 - AT - Customs

Summary

Issues:
1. Interpretation of Notification No. 108(E), dated 30-1-1990 regarding the export prohibition of specific products.
2. Determination of whether the products sought to be exported are derivatives of Benzidine.
3. Consideration of subsequent clarifications by the Ministry of Environment and Forests regarding the applicability of the notification.
4. Evaluation of new evidence presented before the Appellate Tribunal that was not available during the initial proceedings.
5. Decision on remanding the matter back to the Commissioner for further examination and consideration of additional evidence.
6. Assessment of the impact on export orders and foreign exchange due to the controversy.

Analysis:
1. The Commissioner of Customs held that the products sought to be exported were derivatives of Benzidine and prohibited for export by Notification No. 108(E), dated 30-1-1990. The appellants contended that the goods were not derivatives of Benzidine, challenging the Commissioner's decision based on the chemical structural formula provided by the Deputy Chief Chemist.

2. Subsequent to the Commissioner's order, the appellants received clarifications from the Ministry of Environment and Forests stating that Benzidine Disulphonic Acid was not covered by a later notification. The Appellate Tribunal considered certificates from a university expert stating that Benzidine 2.2 Disulphonic Acid is not a derivative of Benzidine, favoring the appellant's position.

3. Given the new evidence not available during the initial proceedings, the Appellate Tribunal decided to remand the matter back to the Commissioner for further examination. The Commissioner was instructed to consider any additional evidence the appellants may present, ensuring adherence to the principles of natural justice.

4. Ultimately, the appeals were allowed, and the impugned order was set aside, directing the Commissioner to decide the matter in accordance with the law. The Tribunal also emphasized the urgency of addressing the impact on export orders and foreign exchange due to the controversy, highlighting the importance of prompt resolution.

This detailed analysis encapsulates the key legal issues, arguments, evidentiary considerations, and the Tribunal's decision, providing a comprehensive overview of the judgment rendered by the Appellate Tribunal CEGAT, Mumbai.