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2023 (6) TMI 325 - CESTAT KOLKATAClassification of imported goods - Low Aromatic While Spirit/Hydro Carbon Solvent and other Petroleum Class A,B and C grades - classifiable under sub-heading 27101920 or under the sub heading 27101990? - violation of provisions of Import Policy - Revenue has reclassified the goods mainly on the basis of the Test Report received from CRCL, Kolkata - whether the Test report findings indicate that the impugned goods meets the specifications required for categorizing it as ‘solvent 125/240, as per IS 1745:2018? HELD THAT:- The Respondent stated that when the Test Reports differs from the standards prescribed, the goods cannot be held to satisfy the requirements under IS 1745 standards meant for CTH 2710. Hence the impugned goods cannot be categorized as ‘Light Oils and Preparations’ as per the CRCL Test report - there are merit in the argument of the Respondent. None of the above said parameters are matching with the minimum or maximum standards fixed as per IS 1745 standards. There is a vast difference between the minimum IFB and maximum FBP fixed as per IS standard 1745 and the result received for the impugned goods. Hence, the impugned goods cannot be classified under chapter sub heading 27101920, on the basis of the parameters available in the CRCL, Test Report dated 26.11.2020. Revenue has relied upon the Note 4 to Chapter 27 for classifying the impugned goods under the CTH 27101920 - the condition as prescribed in Note 4 has not been verified in the CRCL report. It is the primary condition required to be tested for classifying any goods under CTH 27101920. From the said Note, it is evident that for the purpose of sub heading 27101920, the “light oils and preparations” are those of which 90% or more by volume (including losses) distil at 210 degree Celsius, but the test report is silent about it. As per the Test Report, the FBP is 218, which means 100% of the goods will evaporate at 218 degree Celsius itself whereas for classification of the goods as ‘solvent 125/240’ under CTH 27101920, the requirement as per Note 4 is that only a maximum of 90% should evaporate at 240 degree celsius. Since the entire 100% of the goods evaporate at 218 degree celsius itself, the goods are not meeting the requirements as specified under Chapter Note 4 of Chapter 27, accordingly the impugned goods cannot be classified under CTH 27101920as claimed by the Revenue. Violation against PESO Licence - HELD THAT:- It is observed that the PESO License No.P/HQ/WB/15/2530(p-206171) dated 22.11.2019 available with the Respondent valid up to 31.12.2024, allows them to import 84,000 litres of Class B of the Petroleum Product. The impugned import constitutes of 97,280 Kgs (1,19,611 Litres , when worked out based on the density of 0.8133) . However, the Respondents submitted that they have applied for enhancement of the quantity which has since been approved. Therefore, section 111(d) of the Customs Act, 1962 is not applicable as far as the impugned goods are concerned and confiscation is not warranted on this count. The impugned order upheld - appeal filed by the Department (Appellant) rejected.
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