2024 (2) TMI 683

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....the conclusion for fixing the price value of 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. O....

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....el was having very less impurities and that it was in commercial 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....