2001 (10) TMI 244 - AT - Customs

Summary

Issues:
Delay in filing appeal due to separate appeals filed, Concessional assessment of metallurgical coke under Notification 35/90, Reliability of testing samples for phosphorous content, Compliance with Indian Standard Specifications for sampling and testing.

Delay in filing appeal:
The delay in filing appeal C/153/2001 due to two separate appeals being filed instead of a joint appeal has been condoned by the Appellate Tribunal CEGAT, Mumbai.

Concessional assessment under Notification 35/90:
Santur Manganeze & Iron Ores Ltd. imported three consignments of metallurgical coke, claiming concessional assessment under entry No. 2 of Notification 35/90 for coke with phosphorous content of 0.035% or below for manufacturing pig iron. The testing of samples at different laboratories resulted in conflicting reports on phosphorous content. The Chief Chemist's report showed a phosphorous content of 0.058%, leading to denial of the notification benefit. The appellant contested the reliability of the Chief Chemist's report based on the testing procedures and time lapse.

Reliability of testing samples:
The appellant argued that samples were tested by multiple agencies before and after arrival, questioning the reliability of the Chief Chemist's report due to non-compliance with sampling parameters. The Customs department emphasized that the appellant did not challenge the testing process earlier and that results from other agencies were irrelevant.

Compliance with Indian Standard Specifications:
The Appellate Tribunal referred to a previous case regarding testing samples for eligibility of benefits, highlighting the importance of following Indian Standard Specifications for sampling and testing. The Tribunal noted discrepancies in the testing procedures and emphasized the need for accurate sampling methods for reliable results. The Tribunal allowed the appeal, setting aside the impugned order and instructing the adjudicating authority to provide detailed information on sampling and testing methods, allowing both parties to present evidence.

In conclusion, the Appellate Tribunal allowed the appeal, emphasizing the need for compliance with Indian Standard Specifications for sampling and testing to ensure accurate assessment of phosphorous content in imported coke. The Tribunal highlighted the importance of following proper procedures to determine eligibility for concessional assessment benefits under Notification 35/90, setting aside the previous order and instructing the adjudicating authority to provide necessary information for further review.