Delayed sample testing and sample degradation can defeat reliance on lower carotenoid test results for customs exemption claims.

Imported crude palm oil was held to remain eligible for Notification No. 21/2002-Customs where belated testing showed carotenoid content below the prescribed level, because the samples were tested more than 10 days after drawing and there was no evidence of ideal storage conditions. Scientific material and prior Tribunal decisions recognised that beta carotene content may diminish with time, temperature variation, and improper storage. Supplier certificates indicating compliant carotenoid content at shipment were treated as relevant, and later test results were not conclusive of the condition at import in the absence of proper sample preservation. Differential duty demands based solely on the delayed test report were therefore unsustainable.

---

---

Issues: Whether the imported crude palm oil was entitled to the benefit of Notification No. 21/2002-Customs despite the test report showing carotenoid content below the prescribed level, having regard to the delay in testing and the evidence that beta carotene content diminishes with time and improper storage.

Analysis: The test of the samples was conducted more than 10 days after drawing, and there was no evidence that the samples were stored in ideal conditions to preserve their original composition. Scientific material and earlier Tribunal decisions showed that the beta carotene content in crude palm oil can reduce with lapse of time and temperature variation if not kept under controlled storage. The contemporaneous supplier certificates stated that the carotenoid content at shipment was above the prescribed level, and the later test results could not be treated as conclusive of the condition at the time of import in the absence of proper preservation of samples.

Conclusion: The denial of the notification benefit was unsustainable, and the classification and differential duty demands based solely on the belated test results could not be upheld. The appeals were allowed in favour of the assessee.

---