SHREE & COMPANY Vs. COMMISSIONER OF CUSTOMS

JUDGEMENT

(1.) On hearing both sides on the application for waiver of predeposit, we find that the appeal itself could be taken up for disposal. Both sides agreeing this was done on granting waiver of pre -deposit of duty of Rs.4,41,548.90.

(2.) The appellants manufacture HDPE tapes, woven fabrics and woven sacks. For long time these articles were classified under Chapter 54 and Chapter 63 respectively. latter on account of a High Court order the classification was taken to be under Chapter 39. However, up to the time the assessee filed the classification on 01/04/1994 the earlier classification prevailed. In this classification list they also claimed benefit of notification 175/86. Show cause notice was issued in relation to this notification that correct notification was 1/93. In the absence of any reply the Assistant Collector issued an ex -parte order on 25/01/1994. He did not confine himself to the allegations in the show cause notice. Apart from denying the benefit of notification 1/93 he also directed reclassification of the goods under Chapter 39. In pursuance of this order the jurisdictional superintendent issued a letter dated 28/041994 (although the date of letter reads as 28/041993) requesting the assessee to deposit the differential duty of Rs. 26,44,237/ - on account of reclassification. The relevant period is from 01/04/1993 to 28/02/1994.

(3.) The aforesaid order of the Assistant Collector as also the letter of the Superintendent were challenged before the Collector (Appeals). The Collector (Appeals) observed that the change in the classification was bad in law since no opportunity have been given to the assessee. The resultant demand was also found to he bad in law. the matter was remanded for appropriate orders.