2023 (1) TMI 146 - AT - Central Excise

Eligibility for exemption notification provided for corrugated box - exemption was denied on the ground that the appellant have mentioned wrong Tariff Heading Number in their invoices but the fact that the goods were corrugated box is not under dispute which were eligible for exemption - matter not raised before lower authorities - principles of natural justice - HELD THAT - We agree with the learned Counsel that the issue of classification being a question of law can be raised before this Tribunal. However, since this issue has not been raised before the lower authorities. The lower authorities had not occasion to deal with it. In this circumstance, we are of the view that it is in the interest of justice to remand the matter to the adjudicating authority to examine all the issues and pass a fresh order. The appeal is allowed by way of remand to the adjudicating authority.

Summary

Issues involved: Eligibility for exemption notification for corrugated box, classification issue not raised before lower authorities.

Analysis:
1. Eligibility for exemption notification: The appellant claimed exemption for corrugated boxes but was denied due to an incorrect Tariff Heading Number in their invoices. The appellant argued that the goods were indeed corrugated boxes eligible for exemption, although the issue of classification was not raised before the lower authorities. The appellant requested a remand to consider the classification issue. The Counsel contended that the matter should be remanded as the goods were eligible for exemption, and the classification issue could be raised at the Tribunal stage. The Tribunal agreed that the issue of classification, being a question of law, could be raised before them. However, since the lower authorities did not have the opportunity to address this issue, the Tribunal deemed it just to remand the matter to the adjudicating authority for a fresh order.

2. Classification issue not raised before lower authorities: The Superintendent representing the revenue reiterated the findings of the impugned order. The Tribunal acknowledged that the classification issue, being a question of law, could have been raised before them. However, since it was not raised before the lower authorities, they had not addressed it. Therefore, in the interest of justice, the Tribunal set aside the impugned order, allowed the appeal by way of remand to the adjudicating authority, and disposed of the matter. The case highlights the importance of raising all relevant issues at the appropriate stages of the legal proceedings to ensure a comprehensive and just resolution.