2012 (9) TMI 926 - HC - Central Excise

Summary

Issues involved: Appeal against order of Customs Tribunal regarding classification of imported Crude Palm Oil and imposition of Basic Customs Duty.

Classification of Crude Palm Oil: The respondent imported Crude Palm Oil which was tested for acid content by the Port Health Officer and the Chemical Examiner. The acid content was found to be above 10, leading to imposition of Basic Customs Duty at 100% instead of the lower rates specified in the notification.

Validity of Testing and Duty Imposition: The Tribunal considered the validity of the testing and imposition of differential Basic Customs Duty. It referred to previous cases and found that the imposition of duty based on acid value after a lapse of time from import was unsustainable. The Tribunal concluded that the quality of the imported oil should be determined at the time of import, not later.

Decision: The High Court dismissed the appeal under Section 130 of the Customs Act, 1962, finding no error in the Tribunal's conclusion. It held that there was no question of law, let alone a substantial question of law, arising for consideration. The appeal was dismissed at the stage of admission.