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of <h1>Tribunal overturns penalties for misdeclaration, emphasizes lack of evidence. Import compliance upheld.</h1> The Tribunal ruled in favor of the appellants, including M/s. JOCIL Ltd. and M/s. Sree Rayalaseema Alka lies & Allied Chemicals Ltd., in appeals ... As per Import Policy, Crude Palm Stearin can be imported without obtaining licence with certain conditions – revenue alleged that RBD Palm Steam has been misdeclared as Crude Palm Stearin on ground that moisture content is less than 0.1% - opportunity not given to assessee to cross-examine the Chemical Examiner - even the request for retest of samples has not been complied with – product satisfies the moisture and impurity content as per PORAM standards of Crude Palm Steam – no misdeclaration Issues:Appeals involving misdeclaration of imported goods as Crude Palm Stearin and subsequent penalties and confiscation.Analysis:The case involved multiple appeals concerning the misdeclaration of imported goods as Crude Palm Stearin and the imposition of penalties and confiscation. The appellants, including M/s. JOCIL Ltd., M/s. Sree Rayalaseema Alka lies & Allied Chemicals Ltd., and others, imported goods declared as Crude Palm Stearin without obtaining a license, as permitted under specific conditions outlined in Public Notice No. 14(PN)97-02. The dispute arose when the department, long after the import, conducted tests and alleged that the goods were actually RBD Palm Stearin, requiring a license for import. The Commissioner issued show cause notices, leading to the imposition of fines and penalties on the importers. The appellants challenged these orders before the Tribunal.During the proceedings, the appellants argued that they had met all conditions for importing Crude Palm Stearin as per the policy. They contended that the test results, including the free fatty acid content, aligned with the requirements specified in the Public Notice. The Commissioner, however, based his decision on parameters like moisture content, color, and carotenoid range from the test report, concluding that the imported goods were RBD Palm Stearin. The appellants disputed this inference, highlighting discrepancies in the Commissioner's reasoning.Upon thorough examination, the Tribunal found that the Chemical Examiner's reliance on unspecified literature and the denial of cross-examination by the appellants raised doubts about the accuracy of the test results. Additionally, the appellants' certificates from the load port and compliance with PORAM standards for Crude Palm Stearin supported their claim. The Tribunal noted that the moisture and impurity content, although lower than the maximum specified for RBD Palm Stearin, did not conclusively prove misdeclaration. The decision emphasized that the goods were intended for industrial use, not for edible purposes, and the importers had the necessary facilities for processing the goods as required.Ultimately, the Tribunal ruled in favor of the appellants, setting aside the impugned orders and penalties. The judgment highlighted the lack of substantial evidence supporting the misdeclaration allegations and the compliance of the appellants with the import policy conditions. The decision emphasized the importance of proper assessment based on factual and policy adherence, leading to the allowance of the appeals and granting consequential relief to the appellants.
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