TaxTMI 
TaxTMI 
TaxTMI 
2009 (6) TMI 513
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....do- Siddaganga Oil Extractions Ltd., Tumkur 11. C/65/2006 -do- Prakruthi Solvex Pvt. Ltd. Tumkur 12. C/66/2006 -do- Unimers India Ltd., Navi Mumbai 13. C/67/2006 -do- Sami Labs Ltd., Bangalore 14. C/68/2006 -do- Synthite Industrial Chemicals Ltd., Cochin 15. C/69/2006 -do- Anantha Refinery Pvt. Ltd., Challakere, Karnataka 16. C/70/2009 -do- Sarda Vegetable Oils Ltd., Bellary 17. C/71/2006 -do- Parimala Agro Foods & Feeds Pvt. Ltd., Tumkur It can be seen from the above chart, the assessee as well as the Revenue are in appeal against the said OIO. Since all these appeals are arising against the very same OIO, they are being disposed of by a common order. 2. The relevant facts that arise for consideration are: The Officers of Directorate of Revenue Intelligence received intelligence to the effect that M/s. Pure Chemicals Co., Mangalore (hereinafter referred to also as PC) have evaded Customs duty by mis-declaring and wrongly classifying six consignments of imported 'Exxsol Hexane RD' (hereafter also referred to as ERR) to pay lower rate of Customs duty. Intelligence further revealed that M/s. Pure Chemicals Co., Mangalore have suppressed the fact that t....
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....onding the cargo under Section 59 of the Customs Act, 1962, bond-to-bond transfers totaling 212.00 MT have been effected to various buyers. They cleared the remaining quantity of 1169.216 MT on payment of duty, classifying them under different headings of the Customs Tariff. The Bills of Entry filed in respect of four consignments imported under IGMs No. 1273/09-05-2003, 0777/23-05-2002, 1355/07-07-2003 and 1574/18-12-2003 have been assessed to duty provisionally and the four Provisional Duty Bonds executed in this regard are pending finalisation. 6. Based on the Sales Specification of the product 'Exxsol Hexane RD' obtained from M/s. Pure Chemicals Co., Mangalore, DRI made a reference vide letter No. DRI/MRU/PC/52/2003/905, dated 31-12-2003 to the Indian Institute of Petroleum, Dehra Dun. The Institute furnished the reply vide letter dated 2-1-04 and it reads as follows: DR S.N. SHARMA Head Research Planning & Monitoring 2nd January, 2004 Dear Shri Bhat This has reference of your letter DRI/MRU/PS/52/2003/905, dated 31-12-2003 regarding some queries raised by you on "Characteristics and properties of Hexane". Our comments are as follows. (a) Whether the product "Exxsol Hex....
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....e RD' can be considered as a 'Special Boiling Point Spirit'. (b) According to the attached specifications of 'Exxsol Hexane RD', it comes under the category 'Special Boiling Point Spirit' with nominal boiling point range of 63-70°C. (c) 'Hexane fraction' is manufactured by fractional distillation of naphtha fraction, which in turn is obtained by fractional distillation of crude oil, but the straight run fractions as such do not meet revised BIS specifications (IS:3470). For meeting these specifications subsequent treatment like solvent extraction or hydrogenation is required (d) 'Hexane fraction' can also be manufactured from Natural Gas condensate. However, this will also need the processing steps as mentioned above. (e) 'Hexane fraction' (63-70°C) is not pure Hexane. However, this cut typically contains n-Hexane, about 50-55%. The rest of the components are isomers of Hexane, small quantities of C5-C7 saturates and benzene. (f) Here 'Hexane' means the 'hexane fraction'. N-Hexane is a pure component. As mentioned above, 'n-Hexane' is the predominant component in the 'hexane fraction.' After obtaining the test reports, the authorities came to the conclusion that the product....
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.... channeling agency indicated therein is IOCL. It is his submission that the product which was imported by them was not to be used as any of the items as indicated in the said Part 3 but was being used by the pharmaceutical companies and vegetable extraction units as a solvent. He would submit that the intention of the Government was always to cannalise only motor spirits used as fuel and not an industrial raw material like 'Exxsol Hexane RD' though the said product may have special boiling point as specified under Chapter 27. It is also his submission that the imported item is admittedly used by the various industries like pharmaceutical industries solvent extraction unit as a solvent and not as an aviation fuel or motor spirit. (2) It is his submission that the industry took up the matter with the DGFT. DGFT vide their Policy Circular dated 14-7-04 clarified that the product 'exxsol hexane RD' is covered under Chapter 29 of ITCHS classification of exports and import items. It is his submission that in terms of Chapter 2 of the Policy and more specifically Para 2.3 of the Policy, any question or doubt as regards the classification of any item under ITCHS shall be referred to the D....
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....lar dated 22-2-01 classified mixture of hydro carbons under Chapter 29 and hence the product imported by them is squarely covered under Chapter 29 as the said product is a mixture of separately chemically defined compounds. It is his submission that Hexane imported is not a motor spirit. 4. Learned SDR on the other hand would submit that the composition of the product as indicated in the above paragraph will clearly indicate that Sl. No. 5 to 9 in the composition are not isomers. It is her submission that Chapter note 1(a) and 1(b) and Chapter 29 are very relevant for the product to classify under Chapter 29. It was submitted that by application of Chapter note 1(a) 1(b), the product would get out of Chapter 29 and will automatically fall under Chapter 27. It is her submission that the said 'Exxsol Hexane RD' is not a pure chemical and is a mixture of chemical compounds and hence does not fulfill the conditions of note 1(a) to Chapter 29 of the CETA. It is her submission that Hexane is a chain alkine chemical and each of the isomers which is found in the said chemical have separate definite structural diagram. It is the submission of the SDR that the composition of the product as ....
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....the manufacturers of chemicals sent a representation to the DGFT New Delhi on 17th April, 2004. We may reproduce the said representation: 17th April 2004 To The Director General of Foreign Trade Udyog Bhavan Moulana Azad Road, New Delhi - 110011 Sub: Hexane Dear Sir, We would like to bring to your notice certain difficulties faced by our members in different industries like Pharmaceutical & Bulk drugs, Oil seed Extraction Polymers & Plastics etc. Hexane which is generally available as mixture of Isomers of Hexane or Commercial Hexane in commercial quantities is a chemical product which is one of the raw materials used by our members in the above mentioned industries. It is used as a solvent in manufacturing processes. Hexane available locally is not able to meet the international quality standard and the local refineries are not able to meet the specific quality needs our members. The products available nationally have very sulphur and Benzene content which are basically carcinogens. These properties are very crucial for our member organisation in their processes as many of them export their end product and the same has to meet international standards. Hence our member ....
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....tion of fuels are covered only under this chapter and there is also possibility that chemicals which does not meet the specification of fuel may also fall under the heading 27.10. Hence it is necessary to remove any ambiguity in policy which would affect the Trade and commerce. We would be only happy to provide with any further information which would help to speedup the clarification as our member organizations are continuing to face hardships in different ports. We look forward to your immediate attention and clarification which would help our members to meet their export commitments in time. Thanking you., Your faithfully, For Chemicals Industries Association Sd/- P.K.N. Panieckr President cc - 1 Mr. M. Rafeeque Ahmed, President, Federation of Indian Export Organisation, PHD House, New Delhi - 110016 Regd. Office & Admn. : Room No. 4, First Floor, ISTE Professional Centre, Anna University Staff Quarters Campus, Gandhimandapam Road, Chennai - 600025. Phone: 2442 0579 Fax: 2442 0579 E-mail: [email protected] Personel Phone 24-- ---- Fax: 2499 1447 E-mail: [email protected] 8. On receipt of such a representation, the Govt. of India, Ministry of Com....
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....isions of any other law for the time being in force. All imported goods shall also be subject to domestic Laws, Rules, Orders, Regulations, technical specifications, environmental and safety norms as applicable to domestically -produced goods. No import or export of rough diamonds shall be permitted unless the shipment parcel is accompanied by Kimberley Process (KP) Certificate required under the procedure specified by the Gem & Jewellery Export Promotion Council (GJEPC). 2.3 Interpretation of Policy If any question or doubt arises in respect of the interpretation of any provision contained in this Policy, or regarding the classification of any item in the ITC(HS) or Handbook (Vol. 1) or Handbook (Vol. 2) or Schedule of DEPE Rate the said question or doubt shall be referred to the Director General of Foreign Trade whose decision thereon shall be final and binding. If any question or doubt arises whether a licence/certificate/permission has been issued in accordance with this Policy or if any question or doubt arises touching upon the scope and content of such documents, the same shall be referred to the Director General of Foreign Trade whose decision thereon shall be final and b....