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TMI Blog2024 (11) TMI 884X X X X Extracts X X X X X X X X Extracts X X X X ..... w that the impugned goods imported by the appellant satisfied the characteristics of 'Kerosene' as per IS 1459:2018 and accordingly, the same are 'Kerosene' classifiable under CTH 2710 1910. Kerosene, classifiable under CTH 2710 1910, could be imported only by State Trading Enterprises (STEs) or the agencies approved by DGFT, in terms of the Import Policy Condition (5) of Chapter 27 of ITC (HS), 2017 Schedule 1 and Para 2.20 of the Foreign Trade Policy, 2015-20. It also appeared to the Revenue that the goods imported by the appellant fall under the Petroleum Class B Products, Petroleum and Explosives Safety Organization (PESO), in terms of Section 3 of the Petroleum Act, 1934 read with Rules 4 and 6 of the Petroleum Rules, 2002 and that the appellant has not complied with the requirements. 3. Accordingly, a Show Cause Notice was issued to the appellant proposing to reclassify the goods, as 'Kerosene' falls under CTH 2710 1910. It was also proposed to confiscate the goods on account of violation of the provisions of the Foreign Trade Policy, 2015-20 and the provisions of the Petroleum Act, 1934 and Petroleum Rules, 2002. 3.1. The Show Cause Notice was adjudicated v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s imported fulfil the requirements for 'Low Aromatic White Spirit' as claimed by the appellant. Thus, the appellant's contention is that such an inconclusive report cannot form the basis for changing the classification of the goods. 5.1. In support of their claim, the appellant has produced the Order passed by this Tribunal in the case of Commissioner of Customs (Port), Kolkata v. M/s. Maxtone Petrochemicals [Final Order No. 75542 of 2023 dated 06.06.2023 in Customs Appeal No. 75125 of 2022 - CESTAT, Kolkata] wherein similar goods imported were held as classifiable under the CTH 2710 1990. 5.2. In view of the above, the appellant prays for setting aside the impugned order and allowing their appeal. 6. The Ld. Authorised Representative of the Revenue submits that the Test Report received from CRCL, Kolkata is very categorical that the goods imported by the appellant satisfy the conditions as required for 'Kerosene' under IS 1459:2018. He points out that 'Kerosene', classifiable under CTH 2710 1910, could be imported only by State Trading Enterprises (STEs) or the agencies approved by DGFT, in terms of the Import Policy 2015-20; as the appellant did not possess any val ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ic Content (Vol%) (11) Water content (mass%) ND NS ND-Not Done, NS-Not Specified 8.2. A perusal of the comparative chart shown above reveals the following: (3) Colour (Saybolt)- IS: 1459 Requirement- 10 (Min) This indicates that dark pale colour is acceptable for Kerosene, while lighter to water white colours are required for LAWS. However, this parameter was not tested by CRCL, Kolkata. (4) Copper Strip Corrosion Test- IS: 1459 requirement- Not worse than '1'. This is to make sure that equipment and system is safe against corrosion. This is critical requirement for application and should have been tested. However, CRCL, Kolkata has not tested this parameter. (5) Distillation Test- Recovery below 200°C IS: 1459 requirement -20% (Min.) This was not done by CRCL. It is a critical characteristic which determines the vaporisation and flame characteristics. Kerosene will have poor performance in stove due to inadequate fuel supply. 8.3. The comparison chart shown above reveals that the sample has failed to meet the specification required for Kerosene as per IS:1459, in respect of 'Colour', 'Copper Strip Cor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fuel petroleum products. These are manufactured by refractionation of wide boiling refinery products like, gasoline fraction. This is further subjected to 'Dearomatization' process to make aromatic free to specified aromatic content, products. Products of different aromatic content as required by application could be made by blending aromatic free products to base fraction or partially dearomatized stocks. 11.1. With regard to Nomenclature and classification, we find that these products widely vary in boiling range, hydrocarbon group composition, depending upon the end use, storage, safety, environmental and health considerations. Petroleum products are complex mixtures of hydrocarbons and the products are designed based on application requirements. Therefore overlapping of boiling range, compositions and physical characteristics amongst various products is common. ASTM: D 235-02 (2012) gives a wide classification; Mineral Spirits (LAWS). These are in four types and three grades. Type 1 - Full Range Type II- High Flash Point Type III- Oderless Type IV- Low Dry Point These are further classified based on aromatic content. Class A-8 to 22 Vol% aromatics. Class B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... als in the said case, having characteristics similar to the impugned goods, have been classified under the Customs Tariff Item No. 2710 1990. 14. In view of the above, we hold that the goods imported by the appellant are 'Low Aromatic White Spirit', as claimed by the appellant and the same are appropriately classifiable under the Customs Tariff Item No. 2710 1990. 15. We observe that the ld. adjudicating authority has reclassified the goods imported by the appellant as "Kerosene" under the Tariff Item No. 2710 1910. Kerosene, classifiable under CTH 2710 1910, could be imported only by State Trading Enterprises (STEs) or the agencies approved by DGFT, in terms of the Foreign Trade Policy, 2015-20. As the goods imported by the appellant are 'Low Aromatic White Spirit' and classified under the CTH 2710 1990, there is no violation of the Foreign Policy 2015-20. Accordingly, we hold that the goods are not liable for confiscation under Section 111 (m) and Section 111(d) of the Customs Act, 1962 for mis-declaration and violation of the provisions of Para 2.20 of the Foreign Trade Policy read with the rules made under the Petroleum Act, 1934 read with the Petroleum Rules, 2002 and the Cu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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