1994 (11) TMI 246 - AT - Central Excise

Summary

Issues:
1. Confiscation of lubricating oil under Import and Export Policy 1992-97.
2. Classification of imported goods as consumer goods.
3. Applicability of canalisation rules for imported goods.

Analysis:
1. The appeal challenged the order of confiscation of lubricating oil described as Adnoc oils and lubricants under the Import and Export Policy 1992-97. The Collector of Customs and Central Excise, Trichy had confiscated the goods valued at Rs 16,35,383/- and allowed redemption on payment of Rs 7,00,000/-. Additionally, a penalty of Rs 1,00,000/- was imposed on the appellants for importing goods covered by the canalised list of items and the negative list of consumer goods.

2. The appellants argued that the imported goods were in consumer packs of 1, 2, and 8 litres, making them consumer goods. They referred to a communication from the office of the DGTD stating that lubricating oil is freely importable except in consumer packs requiring an import license. The appellants contended that since lubricant oils were not specifically mentioned under the canalised list and did not meet the criteria of consumer goods as per the policy, they should be allowed under the Open General License (OGL).

3. The tribunal observed that the imported goods were petroleum products imported for use as lubricant oil in motor vehicles. The appellants claimed that since the goods did not fall under the list of petroleum products canalised through specific agencies, they should not be considered canalised items. However, the tribunal held that the goods fell under the category of oils required to be imported through State Trading Corporation and Hindustan Vegetable Oils Corporation Ltd. The tribunal rejected the appellants' argument that only goods fit for ingestion by humans or capable of being split into SKD or CKD condition could be considered consumer goods, stating that the imported lubricant oil used in motor vehicles qualified as consumer goods under the policy.

4. The tribunal found the redemption fine reasonable but reduced the penalty to Rs 25,000 considering the circumstances of the case. The appeal was rejected, affirming the lower authority's decision. The detailed order was announced in open court, with the modified penalty amount.

This judgment upholds the decision to confiscate the lubricating oil as a canalised item under the Import and Export Policy 1992-97 and classifies it as consumer goods, rejecting the appellant's arguments to the contrary.