TaxTMI 
TaxTMI 
2020 (6) TMI 70
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....nder Chapter Tariff Heading (CTH) 27101990, while the lower authorities have upheld the classification of the same under CTH 27101910 as Superior Kerosene Oil (SKO), import of which is restricted under ITC (HS) and can be made by State Trading Enterprises. The lower authorities have allowed redemption of the imported goods on payment of fine and penalty, subject to the condition that the said goods are re-exported. 2. The facts in these cases are similar. We are accordingly for the sake of our discussions referring to facts in Appeal No. C/12499/2019-DB. 3. The Appellant in this appeal have imported 276.70 MTs of a product described by them as Petroleum Hydrocarbon Solvent from M/s Om Energy DMCC U.A.E. On import, the Appellant filed ....
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....solvent. 6. The CRCL New Delhi under cover of its report dated 08.02.2019 opined as under: "Each of the two samples is in the form of colorless and pale yellow color liquid respectively. Each is composed of Mineral Hydrocarbon Oil (More than 70% by weight) possessing the following parameters: Sl. No. Characteristics Requirement of Kerosene as per IS: 1459-2019 Test Results pertaining to Lab No. 62 dated 22.01.2019 B/E No. 8258736 dated 29.09.2018 Test Results pertaining to Lab No. 63 dated 22.01.2019 B/E No. 8355059 dated 06.10.2018 1 Acidity, Inorganic Nil Nil Nil 2 Density at 15°C, Kg/m3 Not limited but to be reported 782.3 782.0 3 Distillation: &nbs....
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....Oil and not under CTH 27101990 as claimed by the Appellant so as to why the imported goods should not be confiscated under Section 111(d), (m) and (o) of the Custom Act and why penalty should not be imposed under Section 110 of the Customs Act, 1962. 8. The Appellant filed their response to the Notice denying the allegations in the notice that what had been imported was SKO. Their contentions were rejected by the adjudicating authority vide order dated 3.5.2019, who ordered re-classification of the imported goods under CTH 27101910 as Superior Kerosene Oil. The adjudicating authority also ordered confiscation of the imported goods with an option to redeem the same on payment of Rs. 26,000,000/- and imposed a penalty of Rs. 5,00,000 under....
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.... a) Char value, mg/kg of oil consumed, Max b) Bloom on glass chimney 20 Not darker than grey iii) Colour (Saybolt) +, Min +10 P:14 iv) Copper strip corrosion for 3 h at 500 C Not worse than No.1 P:15 v) Distillation : a) Percent recovered below 200o C Min b) Final boiling point, 0C, Min 20 300 P:18 vi) Flash point (Abel), 0C, Min 35 P:20 vii) Smoke Point, mm, Min 18 P:31 viii) Total, sulphur, percent by mass, Max 0.25 P:34 * Methods of test for petroleum and its products. + Where Saybolt chromometer is not available. Lovibond colour of the sample kept in an 18-in cell may be measured according to IS:1448 [P:13]....
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....d in 1996). However in respect of the other two parameters regarding burning quality and colour there is absolutely no evidence that the revenue has produced to establish that the said two parameters are met with. The revenue has neither through test results nor otherwise lead any evidence to show that the said two parameters were also met with. 13. The law on the question that the burden of classification is on the Revenue is well settled by the Apex Court in the case of HPL Chemicals vs CCE reported in 2006 (197) ELT 324. The relevant observations of the Honble Apex Court are reproduced for better appreciation: "29. This apart, classification of goods is a matter relating to chargeability and the burden of proof is squarely up....