2014 (2) TMI 1059 - AT - Customs

Retesting of the sample by the CLRI - Testing done for the first time was not proper - Held that - procedure prescribed allows retesting of samples when the testing for the first time is done by the Chemical Examiner/Deputy Chief Chemists attached to the Customs House and a request for retesting is made before the original authority. In such cases, retesting is done by the Chief Chemist, who is a higher authority. Normally, in respect of outside testing laboratories, retesting is not allowed as it may result in too many frivolous requests every time an adverse report is received - appellants in this case are small exporters and they have a genuine doubt that the testing has not been done properly in the first time and that the original authority was given a letter for adjudication of the case without a show-cause notice and personal hearing. As such, they had no opportunity to ask for a retesting before the original authority. Hence, considering all aspects of the case and as a very special case, the retesting is allowed subject to the original samples being available and the appellants paying the necessary fees for such testing - Decided partly in favour of assessee.

Summary

Issues: Retesting of samples by CLRI, Justification for retesting, Procedure for retesting, Small exporters' plea for retesting

In the judgment by the Appellate Tribunal CESTAT CHENNAI, the issue at hand was regarding the retesting of samples by the Central Leather Research Institute (CLRI). The appellant had made a pre-deposit of Rs. 2 lakhs before the first appellate authority. The advocate for the appellant requested retesting of the sample by CLRI, citing doubts about the initial testing. On the other hand, the Senior Departmental Representative argued that there was no justification for retesting as CLRI is a reputable institute for testing leather goods. The tribunal noted that the procedure allows retesting when the initial testing is conducted by the Chemical Examiner/Deputy Chief Chemists and a request for retesting is made before the original authority. Typically, retesting is not permitted for outside testing laboratories to avoid frivolous requests. However, considering the appellant's status as small exporters and their genuine doubt about the initial testing, the tribunal made an exception. The retesting was allowed, subject to the availability of the original samples and payment of necessary fees by the appellants. Ultimately, the appeal was allowed in favor of the appellants, granting them the opportunity for retesting in this particular case.