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Issues Involved:
1. Jurisdiction and authority of the Commissioner of Central Excise. 2. Principles of natural justice in quasi-judicial proceedings. 3. Classification of goods under the Central Excise Tariff Act. 4. Issuance of Concession Certificate for imported raw materials. Summary: Issue 1: Jurisdiction and Authority of the Commissioner of Central Excise The Commissioner of Central Excise passed an order on 31-3-2008 confirming the duty demand and penalties on the petitioner company. The petitioners argued that the Commissioner decided the classification of goods, which was not part of the show cause notice, thus acting beyond his jurisdiction. The Court found that the Commissioner's decision on classification was inappropriate as it was pending before the Deputy Commissioner, who was statutorily authorized to decide such issues. The Court quashed the Commissioner's order, noting it was contrary to the principles of natural justice and statutory provisions. Issue 2: Principles of Natural Justice in Quasi-Judicial Proceedings The Deputy Commissioner's order dated 17-6-2008 was challenged on the grounds of violating natural justice principles, including denying cross-examination of experts and being influenced by the Commissioner's earlier order. The Court observed that the Deputy Commissioner's order was a verbatim reproduction of the Commissioner's order, indicating a lack of independent application of mind. The Court emphasized that quasi-judicial authorities must act independently and not be influenced by higher authorities. Consequently, the Deputy Commissioner's order was set aside, and a fresh decision was ordered. Issue 3: Classification of Goods under the Central Excise Tariff Act The dispute centered on whether the petitioner's product should be classified under Sub-Heading No. 8544.70 or 9001.1000. The Court noted that the classification issue was still pending before the Deputy Commissioner, who was directed to decide it independently and without influence from the Commissioner's annulled order. The Court highlighted that the Commissioner's attempt to guide the Deputy Commissioner was illegal and undermined the latter's quasi-judicial authority. Issue 4: Issuance of Concession Certificate for Imported Raw Materials Regarding the import of raw materials at a concessional rate of duty, the petitioners contended that the Customs authorities could not deny the benefits of the exemption notification without finalizing the classification of goods. The Court directed the release of deposited amounts towards the final duty liability and ordered the respondents to issue the necessary Concession Certificates as per Notification No. 24/2005. Conclusion: The Court quashed the Commissioner's order dated 31-3-2008 and the Deputy Commissioner's order dated 17-6-2008, directing a fresh decision on the classification issue. The petitions were disposed of with specific directions regarding the issuance of Concession Certificates and the release of deposited amounts. The Court emphasized the importance of adhering to principles of natural justice and maintaining the independence of quasi-judicial authorities.
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