2024 (2) TMI 683

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....f USD 420 MT, which is in respect of the Lubricating Oil that the sludge/sediments found in the vessel is not in the nature of sludge/sediments but it is lubricating oil. 2. Shri Rahul Gajera, Learned Counsel appearing on behalf of the appellant submits that the department could not establish that the sludge/sediments found in the vessel imported for breaking is a lubricating oil. Therefore, enhancing the value and applying the value of lubricating oil in respect of the sludge/sediments is on assumption or presumption. Therefore, the same is not sustainable. 3. Shri A R Kanani, Learned Superintendent (AR) appearing on behalf of the revenue reiterates the finding of the impugned order. 4. On careful consideration of the submission made by....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....mmercial quantity, the value pertaining to sludge/sediment cannot be applied to the imported item. Further, I find that department had asked the oil companies who are regularly importing oils for giving an opinion, after perusing the test report given by CRCL, Kandla and M/s 10CI. vide letter dated 26.03 2008 had opined that- "From the test results of the samples of sludge/waste oil obtained from the storage tank of the ship brought for breaking it appears that the residual sludge/waste oil is of a different type of mineral hydro carbon/marine oil used by vessels and not the tank bottom crude oil sludge which sometimes remains as residue on tank bottom out of duty paid crude oil. We do not test flash point and smoke point of tank bottom cru....