AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2025 (12) TMI 1488
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....s were all made in one day i.e. on 01.02.2024 as well as all eight orders were passed by the Commissioner (Appeals) on 03.11.2025 confirming the change in classification as well as enhancement of valuation made in Order-in-Originals which were passed on 25.07.2024 for all eight importers. 2. Detail of the happening including names of the party, Bills of entry number, classification & description of goods, Revenue's description and classification of goods, number of containers, Order-in-Original number, Order-in-Appeal number, amount of duties demanded and confirmed, redemption fines imposed, penalties imposed, including appeal numbers of the appeals filed here are all placed together by learned Counsel for the Appellant in a tabular form, which is reproduced herein below to give a comprehensive data on factual aspect. Sl. No Party Name B/E. No & Date Declared CTI & description Revenue's classification & description No of cont-ainers OIO No. Declared value Declared value (C & F) Re-dete-rmined value (FOB) (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) 1 Ideal Impex 8560406 dated 31.10.....
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....trial Use - Only) 2710 1990 Adulterated diesel 10 615(L)/2024- 24/JC/Gr.II(CF)/NS- I/CAC/JNCH dated 25.07.2024 68,87,836.68 USD 430 per MT (C&F) USD 847.50 per MT (FOB) Seizure date Total Duty Demanded (Only on past consignments) C. Appeal No. OIA No. Redemption Fine Imposed Penalty imposed CESTAT Appeal No. (11) (12) (13) (14) (15) (16) (17) 01.02.2024 79,26,677 1845 of 2024 1337 & 1338 (Gr.IIC- F)/2025(JNCH)/Appe als dated 03.11.2025 30,00,000 (10,00,000 for live consignment and 20,00,000 for past consignment) Sec 112(a):12,50,00 0 Sec 114A: 79,26,677 Sec 114AA: 10,00,000 C/87899/2025 01.02.2024 31,40,693 1840 of 2024 1323 & 1324 (Gr. II C- F)/2025(JNCH)/Appe als dated 03.11.2025 30,00,000 (10,00,000 for live consignment and 20,00,000 for past consignment Sec 112(a):14,00,000 Sec 114A:31,40,693 Sec 114AA: 10,00,000 C/87893/2025 01.02.2024 67,04,867 1844....
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....same importer that had undergone same tests with same test results and settled against the same allegation on classification and valuation. 4. In a nut shell, the factual backdrop would go to reveal that Appellants have imported several consignments classifying it as "penetrating oil-60 (for industrial use)" that is covered under CTH 3403 9900 (industrial lubricating preparations) which were goods of non-fuel 'penetrating oils-60', and filed Bills of entry on dated 31.10.2023 individually. Goods were subjected to first check examination and second CRCL test. Reports of both the tests indicated that the product does not meet the requirement of automotive diesel as per BIS 1460 but mainly composed of diesel fractions as well as mixture of hydrocarbons (petroleum) of more than 70% by weight. Some foreign materials were traceable therein for which Respondent-Department concluded in its findings that those were adulted diesel and that resulted in change in classification from CTH 3403 9900 to CTH 2710 1990, which is petroleum oil of other category obtained from bituminous minerals other than crude oil preparations not elsewhere specified or included containing weight 70% or mor....
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....be confirmed was that the constituent was diesel so as to bring some foreign material into it for the purpose of adulteration but instead of establishing the burden to proof its stand, the Respondent-Department had enhanced the price of High Speed Diesel by taking the notified market price determined by the petroleum Authority. With reference to decision of this Tribunal rendered in the case of Victory Trading Company Vs. Commissioner of Customs passed in Customs appeal No. 85549 of 2024 dated 25.02.2025, he further argued that there was a clear finding in the said order at para 9.5 and para 10.1 that though it transpires that imported goods under dispute are mixture of hydrocarbon oil, containing diesel fraction, it does not fulfill the standard requirement as specified under IS 1460: 2005 to be considered as automotive diesel fuel and in view of well settled law in the matter emerged through decision of the Hon'ble Supreme Court in the case of H.P.L. Chemicals Ltd. Vs. Commissioner of Central Excise as reported in 2006 (197) ELT 323 (S.C.) classification of goods being a matter relating to chargeability, the burden of proof is squarely upon the Revenue which it failed to disc....
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....4 of Order-in-Appeal), for which conclusion was drawn by the Respondent-Department that those were adulterated diesel to be appropriately classifiable under CTH 2710 1990 by rejecting the classification made by the importers under CTH 3403 9900. Therefore, it is imperative to have a look at the Chapter Heading 3403 vis. a vis. Chapter Heading 2710 so as to enable us to form our opinion. CTH 3403 Lubricating preparations (including cutting-oil preparations, bolt or not release preparations, anti-rust or anti-corrosion preparations and mould release preparations, based on lubricants) and preparations of a kind used for the oil or grease treatment of textile materials, leather, furskins or other materials, but excluding preparations containing, as basic constituents, 70% or more by weight of petroleum oils or of oils obtained from bituminous mineral. CTH 2710 Petroleum oils and oils obtained from bituminous minerals, other than crude; preparations not elsewhere specified or included, containing by weight 70% or more of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations; waste oils. (Underl....
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....as follows: "9.4 From plain reading of the above tariff extract (2710), it transpires that in order to determine the classification of the goods, particularly in respect of the goods specified in Supplementary Note 1 to Chapter 27, Natural Gasoline Liquid (NGL), Superior Kerosine Oil (SKO), Aviation Turbine Fuel (ATF),High Speed Diesel (HSD), Light diesel oil (LDO) etc. are required to fulfil the characteristics of goods as per the Standard of Measures prescribed by Bureau of Indian Standards (BIS).As the same IS standard provide for product specifications on various criteria/parameters, on the basis of which the same can be classified under a particular entry, conformity with specific IS standard parameters is of paramount importance to classify the goods under that specific tariff item. ..." (2710 is added to clarify) We are, therefore, of the considered view that Appellants have appropriately classified the imported goods under CTH3403 since it is not meeting the IS1460 specification and discharged the applicable duties thereon and Respondent-Department has failed to discharge its burden of proving the classification to the contrary. 10. At th....
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....etroleum oils or oils obtained from bituminous minerals. Leaving aside that inference from the test report for the nonce, we take note that the said heading is delineated not just at the usual 'sub-heading' and 'tariff item' levels but that these are fitted within sub-classifications, excluding waste oil, as containing 'biodiesel' and others conforming to the description. The adjudicating authority narrowed down the residual 'subheading', comprising of other than 'light oils and preparations' of the latter sub-classification which appears to be illogical inasmuch as 'diesel oil' of both types fall within the other sub-heading. It would, therefore, appear that the adjudicating authority has chosen not to classify the impugned goods as 'diesel oil' and took recourse to the residual tariff item within the residual subclassification merely to deny the declared classification and to insist on re-export. This is not in conformity with neutrality envisaged in the General Rules for Interpretation of the Import Tariff appended to Customs Tariff Act, 1975 and is in discord with the onus devolving on 'proper officer' in the decisions of the Hon'ble Supreme Court supra. 9. From a peru....