2011 (3) TMI 1112 - AT - Customs

Classification - Import of goods - assessee had described the goods imported by them as Fractions of Crude Palm Oil and sought amendment of the description as Crude Palm Oil . They also sought permission to transfer the imported goods to a licencee having manufacturing facility/refinery - The Assistant Commissioner of Customs rejected the claim for amendment - Held that - The request for amendment was valid in the eye of law. Further, the request for transfer of the goods to a licencee having manufacturing facility/refinery for the manufacture of refined oil is also permissible as per the warehousing provisions. Therefore, permit the amendment of the Bill of Entry and allow the request of the appellants to transfer of Crude Palm Oil to a licencee possessing manufacturing facility/refinery. Also provisional transfer of the goods was also permitted by the Customs authorities. Hence, the impugned order is set aside and the appeal allowed in the above terms.

Summary

Issues:
1. Request for amendment of goods description from "Fractions of Crude Palm Oil" to "Crude Palm Oil."
2. Permission to transfer imported goods to a licensee with a manufacturing facility/refinery.

Analysis:
1. The case involved a dispute where the assessee sought an amendment of the goods description from "Fractions of Crude Palm Oil" to "Crude Palm Oil." The Assistant Commissioner of Customs initially rejected the claim for amendment, a decision upheld by the Commissioner (A), leading to the appeal. The appellate tribunal noted discrepancies in the documentation, where the Bill of Entry described the goods differently from the invoice and the test report. The tribunal found that since the invoice and test report identified the goods as "Crude Palm Oil," the request for amendment was valid in the eyes of the law. Consequently, the tribunal allowed the requested amendment of the Bill of Entry.

2. Another issue addressed in the judgment was the permission sought by the appellants to transfer the imported Crude Palm Oil to a licensee with a manufacturing facility/refinery for further processing into refined oil. The tribunal examined the warehousing provisions and determined that such a transfer was permissible under the law. Notably, the Customs authorities had also provisionally permitted the transfer of the goods. Therefore, the tribunal allowed the appellants' request to transfer the Crude Palm Oil to the licensee with the manufacturing facility/refinery. Ultimately, the tribunal set aside the impugned order and allowed the appeal in favor of the appellants, granting both the requested amendment and the transfer of goods.

In conclusion, the appellate tribunal's decision favored the appellants by permitting the requested amendment of the goods description and approving the transfer of the imported Crude Palm Oil to a licensee with a manufacturing facility/refinery for further processing. The judgment highlighted the importance of consistency in documentation and compliance with warehousing provisions in such cases, ultimately leading to a favorable outcome for the appellants.