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2017 (3) TMI 1018 - AT - CustomsProhibited goods - import of Pressed Distillate oil (FDO), Heavy Alckeys (RPO), calcium base grease and slack Wax - whether the imported goods are waste products or not so as to qualify as prohibited goods? - absolute confiscation - Held that - Commissioner (A) has elaborately discussed the evidence unearthed by DRI as well as nature of the goods and the relevant test report from CRCL. He categorically concluded by giving detailed reasons that the goods in question are of hazardous nature and is in the form of waste - Once it is established that the impugned goods are in the nature of hazardous waste they become prohibited goods and hence have been rightly confiscated absolutely - penalty also upheld - appeal dismissed - decided in favor of Revenue.
Issues Involved:
1. Mis-declaration and undervaluation of imported petro-chemical products. 2. Classification of goods as hazardous waste. 3. Confiscation of goods and imposition of penalties. Issue-wise Detailed Analysis: 1. Mis-declaration and Undervaluation of Imported Petro-chemical Products: The case originated from an intelligence report leading to the investigation by the Delhi Zonal Unit of DRI into the import activities of certain petro-chemical products by various importers, including M/s. Om Udyog and M/s. S K Petrochem. The investigation revealed that these entities, controlled by Shri Jeevan Jain, imported petro-chemical products through mis-declaration and undervaluation. The goods were subsequently sold through traders, including M/s. Goyal Petrochem. During searches conducted on 28.01.2013, significant quantities of petro-chemical products were found at the premises of M/s. Goyal Petrochem, leading to further investigation and testing. 2. Classification of Goods as Hazardous Waste: Samples of the detained goods were sent to CRCL, New Delhi, for testing. The CRCL reports indicated that the samples did not meet the specifications for Calcium Grease and Heavy Alckeys as per IS standards. Specifically, the Calcium Grease sample had a kinematic viscosity and flash point significantly below the required standards, and the Heavy Alckeys sample had a high concentration of PAHs, classifying them as hazardous waste under the Hazardous Waste Management Handling and Transboundary Movement Rules, 2008. The CRCL test reports confirmed that the goods were hazardous wastes as specified in Part A of Schedule-III/II of the Hazardous Waste Rules, 2008, requiring prior informed consent and a license from the Directorate General of Foreign Trade (DGFT). 3. Confiscation of Goods and Imposition of Penalties: Based on the CRCL reports and the investigation findings, a show cause notice was issued to the appellants. The adjudicating authority confiscated the detained goods and imposed penalties on Shri Ashok Goyal of M/s. Goyal Petrochem and Shri Jeevan Jain, Proprietor of M/s. Om Udyog, under Section 112 of the Customs Act, 1962. The Commissioner (A) upheld the Order-in-Original, leading to the present appeal. The appellants argued that the CRCL reports did not pertain to the samples drawn from their premises and that the allegations were based on assumptions without corroborative evidence. However, the respondent maintained that the goods were rightly confiscated as they were hazardous. The Tribunal found that the Commissioner (A) had thoroughly discussed the evidence and test reports, concluding that the goods were hazardous waste. The findings indicated that the goods were imported in violation of the Customs Act, 1962, as the conditions prescribed in the Hazardous Waste Rules, 2008, were not complied with. Consequently, the goods were liable for confiscation under Sections 111(d) & 111(m) of the Customs Act, 1962, and the penalties imposed on the appellants were justified. Conclusion: The Tribunal upheld the findings of the Commissioner (A) that the imported goods were hazardous waste and thus prohibited. The confiscation of the goods and the penalties imposed on the appellants were upheld, and the appeals were rejected. The judgment emphasized the importance of complying with the Hazardous Waste Management Rules and the Customs Act to prevent the illegal importation and handling of hazardous materials.
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