2013 (5) TMI 810

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....9-2009 for export of 1,20,000 Kgs of "Potassium Chloride" for an FOB value of US $ 40,800. On 18-9-2009 they sought permission to take the goods back to town. However, the department had intelligence that Potassium Chloride of fertilizer grade, which is restricted for export is sought to be exported under the guise of Potassium Chloride, non-fertilizer grade. Therefore, the permission to take goods back to town was not given and samples were drawn for testing the item under export. In the export documents the appellant had declared the item as Potassium Chloride, grade technical, used for oil wells only. The test report received from the Deputy Chief Chemist dated 12-10-2009 indicated as follows : "(i)   the sample is in the fo....

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.... Counsel for the appellant submits that even though as per the test report of the Deputy Chief Chemist, the product under export is fertilizer grade, the said test report is inconclusive. To be of fertilizer grade, as per the fertilizer control order, potassium chloride of fertilizer grade should have moisture percent by weight, maximum 0.5, water soluble potash content (K2O) per cent. by weight, minimum 50% and sodium as NaCI per cent. by weight (on dry basis) maximum 3.5% and particle size - minimum 65 per cent. of the material shall pass through 1.7 mm IS sieve and be retained on 0.25 mm IS sieve. In the present case, the test report does not mention anything about particle size and sodium content and therefore, it cannot be conclusively....

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....nt and Particle size. Therefore, the contention of the appellant that the test report does not conclusively state the items to be fertilizer grade is incorrect. The fact that the appellant bought the materials from somebody else who had earlier exported the item as fertilizer grade does not mitigate the action on the part of the appellant in exporting a restricted item. As per Exim policy, export of potassium chloride fertilizer grade is restricted and the exporter needs a licence from the Government. In the present case, the appellant did not have any licence to export the potassium chloride, fertilizer grade. The Hon'ble Apex Court in the case of Om Prakash Bhatia, reported in 2003 (155) E.L.T. 423 (S.C.) had held that the items restricte....