TaxTMI 
TaxTMI 
2023 (8) TMI 750
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....t goods falling under tariff heading 27101290 are allowed to be imported through State Trading Enterprises (STE) only as per Policy condition-5 of Chaptr-27 of ITC (HS), Schedule-1. However, the appellant is neither STE nor they have submitted any documents showing grant of such rights by the DGFT to import or export any of the goods notified for exclusive trading through STEs, therefore, they have violated the policy conditions of Foreign Trade Policy. The appellant had waived show cause notice and personal hearing. The adjudicating authority vide impugned order rejected the classification of the goods under CTH read with ITC (HS) Schedule-1's heading 27101990 and ordered to classify the same under CTH 27101290 and ordered to charge appropriate duty; confiscated the goods valued at Rs.82,57,557/- under Section 111(d) and 111(m) of the Customs Act, 1962 and gave an opportunity to the appellant to redeem the confiscated goods on payment of redemption fine of Rs.13,00,000/- under Section 125 of the Customs Act, 1962; imposed penalty of Rs.2,00,000/- on the appellant under Section 112(a)(i) of the Customs Act, 1962; also ordered that the goods to be released on payment of appropri....
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.... the sake of convenience Sub-heading Note - 4 is reproduced here in below: "4. For the purpose of sub heading 2710 12," 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 ASTMD 86 method)." As per the test report the distillation has not been done in the present case. Therefore, the goods cannot be classified under CTH 2710 1290 as the goods do not confirm to the light oil. 3.1 The samples drawn have been tested for only 4 parameters on the basis of which it cannot be determined as light oil. The appellant has furnished a Certificate of Analysis along with the Bill of Entry which clearly goes to show that the goods are "Industrial Composite Mixture". The goods as per test report of the department bearing No. 1671 dated 12.07.2018, are composed of Mixture of Mineral Hydrocarbon oil having the following compositions: i. Initial boiling 158°C ii. Final boiling point 212°C iii. Flash Point 41°C iv. Density at 15°C 0.7830 gm/ml and is therefore light oil/SBPS 3.2 The appellant further say and submit that the order in original clearly records as follows:....
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....er, the appellants made added submissions vide their letter received on 11.08.2023 emphasizing, inter alia that only 4 test out of nine were done by the department. 3.7 The appellant therefore submits that the order imposing redemption fine and penalty be set aside with consequential reliefs. 4. As against this, Learned AR relied upon the order of both the lower authorities and the findings to justify the reasoning and the classification upheld by the Department as well as the confiscation and violations has analysed. 5. Considered. We find that the Learned Commissioner (Appeals) has in detail dealt with various submissions of the party as reproduced below: "6. In the instant case, the appellant has declared the imported goods as "Industrial Composite Mixture" and classified the same under CTH 27101990. As mentioned in the impugned order, sample was drawn and forwarded to CRCL, Kandla for testing. The test report No.1671 dated 12.07.2018 states that the imported goods is composed of mixture of mineral Hydrocarbon having initial boiling point 158 C. Final Boiling Point 212° C, Flash Point 41° C, Density at 15° C - 0.7830 gm/ml; it is light oil. Thus as per the said ....
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....STE) as per Policy condition-5 of Chapter-27. However, the adjudicating authority has found that the appellant is neither an STE nor has submitted any documents showing grant of such rights by the DGFT to import or export any of the goods notified for exclusive trading through STES thus the appellant has violated the policy conditions of the Foreign Trade Policy. The adjudicating authority has discussed in detail the confiscation, fine and penalty in the impugned order and I agree with the same" 5.1 Further in this matter, we find that the party had brought a test report with 9 parameters, which it asserts are relevant and decisive for determination of the nature of product and which was drawn purportedly in the country of exportation i.e Bandar Abbas. Same on analyses of 9 parameters including one Doctor test (which has been stated as negative), is reproduced below: ANALYSIS Distillation range 145-230 Desity@ 15°C 780-790 Copper strip, 3hrs 100°C 1a Flash point, tag(min) 45 Color, saybolt 25 Doctor test Neg Sulphut total(max) 0.1 Gum existent (max) 5 Aromatic content 20(max) The report at R/P 18 of the appeal memo is undated and bears no name of testi....