2024 (11) TMI 884

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....CRCL, Kolkata, the Department was of the view that the impugned goods imported by the appellant satisfied the characteristics of 'Kerosene' as per IS 1459:2018 and accordingly, the same are 'Kerosene' classifiable under CTH 2710 1910. Kerosene, classifiable under CTH 2710 1910, could be imported only by State Trading Enterprises (STEs) or the agencies approved by DGFT, in terms of the Import Policy Condition (5) of Chapter 27 of ITC (HS), 2017 Schedule 1 and Para 2.20 of the Foreign Trade Policy, 2015-20. It also appeared to the Revenue that the goods imported by the appellant fall under the Petroleum Class B Products, Petroleum and Explosives Safety Organization (PESO), in terms of Section 3 of the Petroleum Act, 1934 read with Rules 4 and 6 of the Petroleum Rules, 2002 and that the appellant has not complied with the requirements. 3. Accordingly, a Show Cause Notice was issued to the appellant proposing to reclassify the goods, as 'Kerosene' falls under CTH 2710 1910. It was also proposed to confiscate the goods on account of violation of the provisions of the Foreign Trade Policy, 2015-20 and the provisions of the Petroleum Act, 1934 and Petroleum Rules, 2002.....

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....imported only for 'Kerosene'. It is also contended that the Department has not conducted the test to find out whether the goods imported fulfil the requirements for 'Low Aromatic White Spirit' as claimed by the appellant. Thus, the appellant's contention is that such an inconclusive report cannot form the basis for changing the classification of the goods. 5.1. In support of their claim, the appellant has produced the Order passed by this Tribunal in the case of Commissioner of Customs (Port), Kolkata v. M/s. Maxtone Petrochemicals [Final Order No. 75542 of 2023 dated 06.06.2023 in Customs Appeal No. 75125 of 2022 - CESTAT, Kolkata] wherein similar goods imported were held as classifiable under the CTH 2710 1990. 5.2. In view of the above, the appellant prays for setting aside the impugned order and allowing their appeal. 6. The Ld. Authorised Representative of the Revenue submits that the Test Report received from CRCL, Kolkata is very categorical that the goods imported by the appellant satisfy the conditions as required for 'Kerosene' under IS 1459:2018. He points out that 'Kerosene', classifiable under CTH 2710 1910, could be imported only by State Trading ....

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....Point (Abel) °C   42   35 (Min.)   (7) Smoke Point (mm)   21   18 (Min.)   (8) Total Sulfur (mass%) Mercaptan sulfur mass%   (1000ppm) ND   0.25 (Max.) NS   (9) Density at 15°C (g/cc)   0.7882 ND   NS NS   (10) Aromatic Content (Vol%)       (11) Water content (mass%)   ND   NS   ND-Not Done, NS-Not Specified 8.2. A perusal of the comparative chart shown above reveals the following: (3) Colour (Saybolt)- IS: 1459 Requirement- 10 (Min) This indicates that dark pale colour is acceptable for Kerosene, while lighter to water white colours are required for LAWS. However, this parameter was not tested by CRCL, Kolkata. (4) Copper Strip Corrosion Test- IS: 1459 requirement- Not worse than '1'. This is to make sure that equipment and system is safe against corrosion. This is critical requirement for application and should have been tested. However, CRCL, Kolkata has not tested this parameter. (5) Distillation Test- Rec....

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....by the appellant meets the requirement of 'Low Aromatic White Spirit' as claimed by the appellant. The claim of the appellant cannot be rejected without testing whether the goods imported by the appellant satisfy the requirements for 'Low Aromatic White Spirit', which is similar to "light oils and preparations". 11. From the literature submitted by the appellant, we observe that Low Aromatic white Spirits (LAWS) is a specific high value segment of non-fuel petroleum products. These are manufactured by refractionation of wide boiling refinery products like, gasoline fraction. This is further subjected to 'Dearomatization' process to make aromatic free to specified aromatic content, products. Products of different aromatic content as required by application could be made by blending aromatic free products to base fraction or partially dearomatized stocks. 11.1. With regard to Nomenclature and classification, we find that these products widely vary in boiling range, hydrocarbon group composition, depending upon the end use, storage, safety, environmental and health considerations. Petroleum products are complex mixtures of hydrocarbons and the products are designed based....