1998 (3) TMI 322 - AT - Customs

Tribunal deems 5 kg essential oil as bulk purchase, rejecting Revenue's appeal.

The Tribunal upheld the Commissioner's order classifying imported natural essential oil in 5 kg packing as a bulk purchase, rejecting the Revenue's ... Import - Bulk purchase - Interpretation of statute Issues:- Classification of imported natural essential oil in 5 kg packing as 'bulk purchase.'Analysis:The case involved a Revenue appeal against the Order passed by the Commissioner (Appeals), Chennai, regarding the import of natural essential oil in 5 kg packing. The original authority proceeded against the importer under various provisions, including the Customs Act, on the grounds of lacking specific licenses required for such imports. The importer argued that the item was essential oil used in manufacturing Sandalwood powder, marketed as 'Gokul,' and should be considered a bulk purchase due to its usage for large-scale production. The Commissioner accepted the importer's contention based on the nature and value of the goods, classifying it under a specific category that did not require a license. The Revenue did not contest this classification but raised the issue of whether the 5 kg packing should be considered a bulk purchase. The Revenue relied on the definition of 'bulk' in the Customs Tariff Act, which the Tribunal found inapplicable to the ITC policy. The Tribunal noted that essential oils are expensive items primarily used in perfumery, not sold in retail quantities, and concluded that the 5 kg quantity, valued at Rs. 2,78,475, should be considered a bulk purchase. The Tribunal emphasized the commercial understanding of the trade and production requirements, ultimately rejecting the Revenue's appeal and upholding the Commissioner's order.