Chemical analysis in customs assessment must follow prescribed sampling and testing before denying notification benefit.

Concessional customs assessment under Notification No. 35/90 could not be sustained on a disputed chemical report where the sampling and testing procedure was not established. The earlier laboratory result was only a colour comparison and not a quantitative determination, while the later Chief Chemist report was obtained after a long delay, raising concerns about moisture change, ambient conditions and the reliability of the phosphorous analysis. The assessment therefore had to be revisited only after disclosure of the sampling and testing method and a fresh opportunity for the importer to challenge the methodology.

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Issues: Whether the denial of concessional assessment under Notification No. 35/90 could be sustained on the basis of the Chief Chemist's report when the sampling and testing procedure was disputed and there had been a substantial delay between import and final testing.

Analysis: The appeal turned on the reliability of the chemical analysis and the manner in which the samples had been drawn and tested. The earlier laboratory report was only a colour comparison exercise and was not a quantitative determination. The later report from the Chief Chemist, rendered after a long interval, could not be accepted without first ascertaining whether the prescribed Indian Standard specifications governing sampling and testing had been followed. The delay, possible changes in moisture content and ambient conditions, and the absence of a clear statistical or quantitative determination of phosphorous content made it necessary to verify the sampling procedure and the testing methodology before finalising the assessment.

Conclusion: The denial of the notification benefit could not be affirmed on the existing record, and the matter had to go back to the adjudicating authority for disclosure of the sampling and testing procedure and for a fresh opportunity to the importer to contest the methodology.

Ratio Decidendi: Where the benefit of a customs notification depends on chemical composition, the assessment cannot rest on a disputed report unless the prescribed sampling and testing procedure is shown to have been followed and the importer is given a fair opportunity to challenge it.

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