Bulk packing test for essential oils: small-container lime and lemon oil imports were not eligible for OGL without licence.

Packing of lime oil and lemon oil in 2 kg and 5 kg containers was held not to amount to bulk packing for import under OGL without licence. The Tribunal rejected the view that actual-user status, three months' consumption, or limited shelf life by themselves established bulk packing. In the absence of a specific definition for essential oils, the EXIM Policy 1997-2002 definition of bulk packing for lubricating oils and grease was applied by comparison; on that basis, goods packed below 20 kg were not bulk packed and were therefore not freely importable. The Commissioner (Appeals) order was set aside and confiscation with redemption option and penalty was restored.

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Issues: Whether 2 kgs and 5 kgs packing of lime oil and lemon oil could be treated as bulk packing so as to permit import under OGL without a licence.

Analysis: The lower appellate authority treated the packing as bulk on the basis that the importers were actual users, the quantities would last for about three months, and the oils had a limited shelf life. The Tribunal held that these considerations were insufficient to establish bulk packing. In the absence of a specific definition for essential oils, the definition of bulk packing in the EXIM Policy 1997-2002 for lubricating oils and grease was rightly applied by the adjudicating authority for comparison. On that basis, the imported goods, being packed in less than 20 kgs, were not bulk packed and were not eligible for import under OGL without licence.

Conclusion: The order of the Commissioner (Appeals) was set aside and the order of the Assistant Commissioner restoring confiscation with redemption option and penalty was upheld, in favour of Revenue.

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