2019 (4) TMI 1704

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....Natural Gas Company (ONGC). They imported rig and vessels for use in connection with the operations. The Director General of Hydrocarbons issued Essentiality Certificates for the rig and vessels mentioning the quantity of Marine Gas Oil (MGO) on board the rig and the vessels. The MGO on board, the rig and the vessels were entitled to exemption from customs duty and additional duty of customs under the notification 12/2012-Cus dated 17.3.2012 as amended. Upon arrival of the rig and the vessels at Kakinada Port, they were converted from foreign run to coastal run. The samples of MGO on board, the rig and vessels were drawn and sent for testing to the customs laboratory. The appellant filed bills of entry in respect of the vessels and consumab....

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....l for the appellant takes us through the relevant entries of the Tariff and the Chapter notes of Chapter 27. Supplementary note (e) to this Chapter states that "HSD (High Speed Diesel) means any hydrocarbon oil conforming to the India Standards specification of Bureau of Indian Standards IS 1460:2005." To meet this standard, 22 parameters must be satisfied before the material can be certified as HSD. Unless all these parameters have been tested and found to be as per the Indian Standards, the fuel in question cannot be considered as HSD. They have declared the fuel as MGO and if it is to be disputed the department has to prove that it is not. The test report only states that it has the characteristics of HSD. This test report is incomplete ....