2003 (12) TMI 365 - AT - Customs

Summary

Issues:
1. Import of goods declared as 'Furnace Oil' tested positive for hazardous chemicals.
2. Discrepancy in test results led to legal dispute regarding clearance of goods.
3. High Court directed fresh testing of samples as per revised guidelines.
4. Samples found off-specification for furnace oil, lacking required parameters.
5. Customs proposed confiscation under Section 111(d) of the Customs Act.
6. Legal challenge based on High Court's judgment favoring legality of import.

Analysis:
1. The case involved the import of goods declared as 'Furnace Oil' which tested positive for hazardous chemicals, including chlorinated solvents and polychlorinated biphenyl. The Central Revenue Control Laboratory (CRCL) conducted tests as per CBEC guidelines and found discrepancies, leading to doubts about the goods' nature.

2. A legal dispute arose when the importer filed a writ petition in the Delhi High Court for clearance of the goods. The High Court directed fresh testing of samples based on revised guidelines. The samples were found to be off-specification, failing parameters for acidity, ash content, sediment, and water content as per Board's Circular No. 106/2000.

3. The Customs authorities proposed confiscation of the goods under Section 111(d) of the Customs Act due to the lack of specific import license for off-specification goods and non-compliance with Hazardous Wastes Rules. The party contested based on the High Court's judgment, arguing that legality was already settled in their favor.

4. The Tribunal analyzed the High Court's judgment, noting that the import of goods was deemed legal by the Court. The Tribunal interpreted the relevant clause of Section 111(d) of the Customs Act and concluded that since the import was legal, it did not contravene any prohibition under the Act. Therefore, the goods were not liable for confiscation.

5. Consequently, the Tribunal set aside the impugned order for absolute confiscation, allowing the appeal in favor of the importer based on the legal interpretation that the goods were not subject to confiscation under Section 111(d) of the Customs Act due to their legal import status as determined by the High Court.