2023 (9) TMI 241 - AT - Customs

Wavier of detention and demurrage charges - Classification of imported goods - Mineral Hydrocarbon Oil - to be classified under CTH 27101990 as Mineral Hydrocarbon Oil or under CTH 27101910 as Kerosene - rejection of declared value - redetermination of value - HELD THAT - The Department has proceeded against the appellant mainly based on the test report dated 15.01.2020 furnished by the CRCL, certifying the imported goods to be of Kerosene (SKO). However, it is found that while testing the imported goods, the said agency has not confirmed to the IS 1459 2018 by testing all the ten parameters specified therein; instead they tested only few of such specified parameters for giving the technical opinion that the sample is Kerosene - further, by relying upon the test report in respect of product in question, this Tribunal in the case of SHRI JETHANAND ROHRA AND M/S JAYMCO POLYMERS PVT. LTD. VERSUS COMMISSIONER OF CUSTOMS (IMPORT) RAIGAD 2022 (5) TMI 588 - CESTAT MUMBAI has set aside the adjudication order. In view of the fact that the investigation has not been properly conducted to ascertain the nature of goods imported by the appellant and in absence of proper substantiation of test report by CRCL, we are of the view that the adjudged demands confirmed on the appellant cannot be sustained for judicial scrutiny - Since the goods are lying under seizure and in the custody of the Department for over three years, the concerned authorities are directed to issue proper certificate for waiving the detention and demurrage charges within a period of four weeks from the date of receipt of this order. Appeal disposed off.

Summary

Issues involved:
The issues involved in the judgment include classification of imported goods, adherence to testing parameters, proper investigation by the Department, and judicial scrutiny of adjudged demands.

Classification of imported goods:
The appellant had filed a Bill of Entry claiming the imported goods as "Mineral Hydrocarbon Oil." However, after testing by the CRCL, the Department classified the goods as Kerosene under CTH 27101910. The original authority rejected the classification claimed by the appellant and ordered for classifying the goods as Kerosene. The Department also redetermined the value of the goods and imposed penalties under the Customs Act, 1962. The Commissioner (Appeals) upheld the original order, leading to the appellant's appeal before the Tribunal.

Adherence to testing parameters:
The appellant argued that the testing agency did not adhere to the parameters prescribed in IS 1459:2018 while testing the samples from the imported consignment. It was highlighted that not all parameters were complied with, and the Department did not investigate the matter properly by failing to record statements from the proprietor of the firm. Reference was made to a previous Tribunal order to support the argument that the issue in the present dispute had already been addressed.

Proper investigation by the Department:
The Department proceeded against the appellant based on a test report certifying the goods as Kerosene. However, it was noted that the testing agency did not test all parameters specified in IS 1459:2018, as required for confirming the product as Kerosene. The Tribunal referred to a previous case where a similar issue led to the setting aside of the adjudication order. Due to the lack of proper investigation and substantiation of the test report, the Tribunal concluded that the demands confirmed on the appellant could not be sustained for judicial scrutiny.

Judicial scrutiny of adjudged demands:
Considering the inadequacies in the investigation and testing process, the Tribunal set aside the impugned order, allowing the appeal in favor of the appellant. The Tribunal directed the concerned authorities to issue a certificate for waiving detention and demurrage charges for the goods, which had been under seizure for over three years.