2000 (7) TMI 378 - AT - Central Excise

Summary

Issues:
1. Whether the Assistant Collector had the power to review the classification list of the assessee after once approving it.

Analysis:
The case involved the question of whether the Assistant Collector had the authority to review the classification list of the appellants after initially approving it. The appellants, engaged in the manufacture of toughened glass and solar cooker/collector parts, had classified their products under a specific sub-heading of the Central Excise Tariff Act (CETA), which was approved by the Assistant Collector. However, the department later contended that the products were wrongly classified and issued a show cause notice alleging the incorrect classification under a different sub-heading of the CETA, leading to a demand for differential duty. The appellants disputed this notice, asserting that their classification was correct and that the Assistant Collector lacked the power to review their classification list. Despite the Assistant Collector accepting their position and dropping the proceedings, the Revenue appealed the decision, which was upheld by the Collector (Appeals).

Upon review, the Tribunal found that the Assistant Collector indeed had the inherent power to review the earlier approved classification list to correct any errors. Citing legal precedents, including the observations of the Apex Court in previous cases, the Tribunal emphasized that quasi-judicial authorities possess the authority to rectify mistakes in their earlier orders and are not bound by the principle of stare decisis or estoppel against law. The Tribunal highlighted that the Assistant Collector was within his rights to reopen the classification issue and demand the differential duty as per law, contrary to the views of the Assistant Collector and the Collector (Appeals). Consequently, the impugned order of the Collector (Appeals) was set aside, and the matter was remanded back to the Assistant Collector for a fresh decision on the issue in accordance with the law.

In conclusion, the Tribunal ruled in favor of the Revenue, holding that the Assistant Collector had the legal authority to review the classification list of the appellants and make a fresh determination on the classification issue, emphasizing the corrective power of quasi-judicial authorities to rectify errors in their earlier orders.