2023 (12) TMI 489 - AT - Customs

Jurisdiction - power of Commissioner (Appeals) under Section 128A (3), to modify order after inquiry - change of heading by the Commissioner (Appeals), without affording opportunity - Classification of imported goods - Malvern Master Sizer - HELD THAT - While Commissioner (Appeals) is within its powers to confirm the decision or order appealed against or modify the same, but there is an initial requirement that he should make further inquiry as may be necessary and pass such order i.e just and proper. In the present instance, no inquiry it appears was conducted about the product or details and the matter has been decided without opportunity to the appellants. Appellants too are agreeable and seek remand, but with rider of opportunity about correct classification on (even of third head). Thus, change of heading by the Commissioner (Appeals), without affording opportunity is improper, and same can only be done after conducting proper inquiry and following natural justice. Matter therefore is remanded in the interest of settling classification at the earliest - Appeal is allowed by way of remand.

Summary

Issues involved: Classification of imported product under different tariff headings, power of Commissioner (Appeals) to modify orders under Section 128A (3) of the Customs Act.

The Appellate Tribunal CESTAT Ahmedabad addressed the issue of classification of an imported product, Malvern Master Sizer, under different tariff headings. The appellants sought classification under Tariff Heading 90275090, related to instruments for physical and chemical analysis. However, the department proposed a different heading, 90318000, for other instruments. Eventually, the Commissioner (Appeals) decided on Heading 90314900 without providing an additional opportunity for the appellants, despite the initial proposal by the department. The Tribunal found that the change of heading without affording an opportunity was improper and emphasized the need for proper inquiry and following natural justice in such matters.

The Tribunal considered the power of the Commissioner (Appeals) to modify orders under Section 128A (3) of the Customs Act. It was highlighted that the Commissioner (Appeals) has the authority to confirm or modify the decision or order appealed against, but this should be done after conducting a necessary inquiry and passing an order that is just and proper. The Tribunal noted that in the present case, it appeared that no inquiry was conducted about the product details before the decision was made, and the appellants were not given an opportunity to present their case. The Tribunal, therefore, remanded the matter to settle the classification issue promptly.

In conclusion, the Appellate Tribunal CESTAT Ahmedabad allowed the appeal by way of remand, emphasizing the importance of conducting proper inquiries, affording opportunities to the parties involved, and following principles of natural justice in matters of classification under tariff headings.