2024 (11) TMI 1646

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....goods, declared as 'Solvent paint' under CTI 3814 0010 of the First Schedule to the Customs Tariff Act, 1975. However, on testing of the imported goods by Central Revenue Control Laboratory (CRCL), Nhava Sheva, it was reported by the Chemical Examiner that the same were 'Superior Kerosene Oil (SKO)', which fall under CTI 2710 1932 and import of the same is allowed only by State Trading Enterprises. Since the appellants had imported SKO, which was 'prohibited' for import without any specific authorization from DGFT, the officers in the SIIB (I), JNCH had investigated into the matter and concluded that the appellants had mis-declared the description of the goods as well as the value thereof. Accordingly, proceedings were initiated against the....

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....ement of Petroleum Hydrocarbon Solvent as per IS:1745: 2018. On the basis of such re-test report submitted by CRCL, the learned Joint Commissioner of Customs, JNCH, Nhava Sheva had adjudicated the matter and vide order dated 26.08.2022 had changed the classification of goods as SKO falling under CRI 2710 1932; rejected the declared value; confiscated the imported goods, with option to redeem the same on payment of redemption fine and imposed penalties under Section 112(a) ibid and Section 114AA ibid on the appellants. On appeal against the said adjudication order dated 26.08.2022, the learned Commissioner (Appeals) vide the impugned order dated 10.05.2023, has dismissed the appeal, by upholding the order passed by the original authority. Fe....

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....e purpose of re-testing, which was also accepted by the department. We find that even the re-testing done on various parameters were not in conformity with the prescribed standards under IS:1459:2018 for SKO inasmuch as the report with regard to the 'burning quality' is absent in such report. Further, the test with regard to the 'Sulphur content' and 'Aromatic content' in the imported goods were not tested at the initial round and thus, such tests done after a lapse more than two years, that too, for the first time cannot be considered as the adequate proof to hold that the product in question is SKO, as claimed by Revenue. From the test reports obtained by the department, it is evident that all the parameters prescribed under IS:1459:2018 ....

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.... agency has not confirmed to the IS 1459:2018 by testing all the ten parameters specified therein; instead they tested only few of such specified parameters for giving the technical opinion that the sample is Kerosene. We further find that by relying upon the test report in respect of product in question, this Tribunal in the case of Shri Jethan and Rohra (supra) has set aside the adjudication order. The relevant paragraphs in the said order are extracted herein below:- "27. Having considered the rival contentions, we find that the issue involved in these appeals is whether the Revenue was correct in re classifying the imported goods declared as "Mineral Hydrocarbon Oil-CTH 27101988 and Mixed Mineral Hydrocarbon Oil-CTH 27101990" a....