2007 (6) TMI 373 - AT - Central Excise

Summary

Issues involved: Appeal against Order-in-Appeal regarding exemption from customs duty based on conflicting reports from Port Health Officer and Chemical Examiner.

Summary:

Issue 1: Interpretation of test reports and eligibility for exemption
Both appeals arose from Order-in-Appeal No. 2/2007 (V-II) Cus. dated 23-2-2007, where the appellants had imported crude Palm oil and relied on a report from the Port Health Officer for exemption from customs duty. However, a report from the Chemical Examiner later contradicted this, leading to demands by the authorities. The appellants argued that the Chemical Examiner's report, issued after 9 months from sample drawal, was vitiated. The Tribunal found that similar judgments favored importers in such cases, emphasizing the importance of timely testing. The impugned order was set aside, and the appeals were allowed.

Issue 2: Comparison with previous Tribunal rulings
The appellants cited a previous Tribunal ruling in the case of Sarda Agro Oils to support their appeal, claiming that the Commissioner was unjustified in distinguishing it. The learned Consultant argued that the facts were identical and the Chemical Examiner's report should not have been accepted. On the other hand, the JDR supported the Commissioner's decision to reject the exemption based on the Chemical Examiner's findings. The Tribunal noted that the Commissioner did not follow the cited Tribunal rulings and emphasized the importance of timely testing, as seen in a similar case decided by the Chennai Bench. The impugned order was deemed not legal and proper, leading to the allowance of the appeals.

Separate Judgment:
No separate judgment was delivered by the judges in this case.