TaxTMI 
TaxTMI 
2023 (6) TMI 1014
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....gation against the Appellant and detained the said goods imported by the Appellant. Samples were drawn and on the basis of the Test Reports received from CRCL, Kolkata, the Department rejected the classification of 271990 sought by the Appellant and proposed to reclassify the same under the CTH 27101239 as 'Solvent 145/205 as per IS 1745:2018'. 2. The Joint Commissioner of Customs (Port), SIB, Custom House, Kolkata issued a SCN dated 30.06.2021 proposing to reclassify the goods under 27101239. The Notice was adjudicated and the adjudicating authority vide his order dated 24/02/2022 rejected the declared description of the goods "White Spirit in bulk" and re-determined the same as "Solvent 145/205 as per IS 1745:2018". He allowed re-export of the goods imported vide the above said Warehousing Bills of Entry, upon payment of Redemption Fine. He also imposed penalty on the Appellant. The Appellant filed an appeal before the Commissioner (Appeals), who allowed the appeal of the Appellant vide his Order-in-Appeal dated 10/06/2022 and held the classification of the goods under Customs Tariff 27101239 as erroneous and set aside the Order-in-Original and remitted the mat....
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....f Petroleum Class B and clear colourless transparent liquid composed of Mineral Hydrocarbon Oil. The CRCL Report indicated that: i) the samples under reference meets the criteria of 'low aromatic solvent' as per IS 1745-2018 for petroleum hydrocarbon solvent. ii) The samples under reference are Petroleum Class-B as per Petroleum Act, 1934. 7. The Petroleum Class A, B and C are defined in the Petroleum Act, 1934, which are as given below: i) "Petroleum Class A" means petroleum having a flash-point below 23 C ii) "Petroleum Class A" means Petroleum having flash-point of 23 C and above but below 65 C; iii) "Petroleum Class C" means petroleum having a flash-pint of 65 C and above but below 93 C 8. On the basis of analytical observations, it is observed that the CRCL Test Report confirmed that the goods are of Petroleum 'Class B'. Further, as per Chapter Note 4 of Chapter 27 of the Customs Tariff, for the purposes of sub-heading 271012, 'light oils and preparations' are those of which 90% or more by volume (including losses) distil at 210 C according to the ISO 3405 method (equivalent to the ASTM D 86 Method). On the basi....
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.... under CTH 27101230. The Appellate Authority has wrongly analysed the Interpretatory Rules and held that the said goods cannot be classified under the CTH 27101239. He argued that the impugned order passed by the Appellate Authority is liable to be set aside. 11. Heard both sides and perused the appeal records. 12. The issue to be decided here is the classification of the goods 'low aromatic white spirit' imported by the Appellant. The Appellant has classified the goods under CTH 27101990 and filed the Bills of Entry Nos 2202769 dated 01/01/2021 and 2203997 dated 02/01/2021. Revenue has reclassified the said goods under CTH 27101239 on the basis of Test Report of CRCL, Kolkata, wherein it is stated that the product under reference meets the requirements of 'light oils and preparations' and hence the impugned goods are rightly classifiable as ' Solvent 145/205' as per IS 1745:2018. 13. In order to decide whether the goods can be classified as 'solvent 145/205 as per IS standard 1745/2018, it is required to compare the results of the Test Report for the impugned goods with that of the standard requirements for the solvent 145/205 as per IS 1745/....
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....rightly pointed out by the Ld. Advocate that, in the testing report it has been stated that the sample drawn from the appellant's premises is liquid containing mixture of hydrocarbons having distillation range from 35 degree to 58 degree Celsius and flash point below 25 degree Celsius. The classification adopted by the Ld. Commissioner is not in consonance with the Note no. 4 to Chapter 27 of the Tariff which states that "Light Oil and Preparations" are those of which 90% or more by volume (incl. losses) distilled at 210 degree Celsius, whereas the Chemical Examiner has stated that the range of distillation of product is 35 degree to 58 degree Celsius which is much below 210 degree Celsius. Hence the classification under Chapter 271011 cannot be adopted. Similar observations have been made by the Tribunal in the aforesaid decision. 9. In view of the aforesaid, the classification adopted by the Ld. Commissioner cannot be approved and hence, the entire duty demand, interest and penalty are set aside and the appeals are allowed with consequential relief. The personal penalty imposed on Shri Bindhyachal Singh, Accountant, is also set aside." The above said decisi....
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....valent to the ASTM D 86 method)" 18. We find that the above condition as prescribed in the Note 4 has not been verified in the CRCL report. It is the primary condition required to be tested for classifying any goods under CTH 2712. From the said Note, it is evident that for purpose of sub heading 2710.12, the "light oils and preparations" are those of which 90% or more by volume (including losses) distil at 210 degree Celsius, but the test report is silent about it. AS per the Test Report, the FBP is 194, which means 100% of the goods evaporate at 194 degree Celsius itself whereas for classification of the goods as 'solvent 145/205' under CTH 27101239, the requirement as per Note 4 is that only a maximum of 90% should evaporate at 205 degree celsius. Since the entire 100% of the goods evaporate at 194 degree celsius itself, the goods are not meeting the requirements as specified under Chapter Note 4 of Chapter 27, accordingly we hold that the impugned goods cannot be classified under CTH 27101239 as claimed by the Revenue. 19. The Appellant stated that they have imported ten consignments of white spirit in the past which were assessed and cleared under CTH 27101990. N....