2015 (2) TMI 81 - AT - Customs

Appellant's right to retesting upheld, bank guarantee not encashed pending adjudication.

The judgment upheld the appellant's right to request retesting from a different laboratory due to doubts raised about the accuracy of the initial test ... Rejection of the request of the importers for retesting of samples of the imported goods in any laboratories other than CRCL - Held that:- Representative samples were drawn and same were sent to CRCL laboratories. The test report of CRCL has been objected by the appellant. It was also revealed from the records that CRCL has no equipment to test the represented samples of the appellant. Therefore, the test report given by CRCL is in doubt. The appellant is having a right to ask retest of the samples from any other laboratory other than CRCL when the CRCL is not having equipments to examine required product. In these circumstances, the test report of CRCL is not acceptable - Therefore, the impugned order is set aside - Decided in favour of appellant. Issues involved:1. Request for retesting of samples from laboratories other than CRCL.2. Denial of retesting request by the impugned order.3. Discrepancy in the test report provided by CRCL.4. Appellant's right to ask for retesting from a different laboratory.5. Adjudicating authority's decision regarding retesting.Analysis:Issue 1: Request for retesting of samples from laboratories other than CRCLThe appellant imported Calcite Powder or Chalk or Natural Calcium Carbonate and sought retesting of the samples from laboratories other than CRCL.Issue 2: Denial of retesting request by the impugned orderThe impugned order rejected the appellant's request for retesting of the samples from laboratories other than CRCL.Issue 3: Discrepancy in the test report provided by CRCLThe test report provided by CRCL concluded that the imported goods were processed calcium carbonate, not natural calcium carbonate, leading to objections from the appellant.Issue 4: Appellant's right to ask for retesting from a different laboratoryThe appellant argued that CRCL lacked the necessary equipment to test the samples adequately, casting doubt on the credibility of the test report. The appellant requested retesting from a different laboratory based on this discrepancy.Issue 5: Adjudicating authority's decision regarding retestingThe adjudicating authority denied the appellant's request for retesting from a different laboratory, citing the conclusive report provided by CRCL and the appellant's failure to request cross-examination of the CRCL officer.In the judgment, it was noted that CRCL did not have the equipment to test the samples adequately, raising doubts about the accuracy of their report. The appellant's right to request retesting from a different laboratory was upheld based on this deficiency. The impugned order was set aside, directing the adjudicating authority to arrange for the samples to be retested by a laboratory other than CRCL. Additionally, it was ruled that the bank guarantee furnished by the appellant should not be encashed until the adjudication process was finalized. The stay application and appeal were disposed of accordingly.This judgment highlights the importance of ensuring accurate testing of imported goods and the right of importers to request retesting from alternative laboratories when the credibility of the initial test report is in question.