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2013 (11) TMI 342 - AT - CustomsClassification of goods - Marketability of the sludge/sediment oil found in the Tank No. 8 of the vessel TT Theo Strous, brought for breaking by the appellant - Held that:- appellant herein is a ship breaker and had imported ship for breaking and filed bill of entry “import of vessel and contents therein for ship breaking”. In my considered view, the goods that land in India are considered as import, their question of marketability need not be gone into, as the customs duty is leviable on the goods which are imported into India - question of classification does arise as Chemical Test Report indicates that the sludge/sediment (oil) is mixture of hydrocarbon with small water contents which is 4% of the total sludge/sediment found in the ship. Be that as it may, I find that in this case, Revenue has discharged the burden of marketability by producing two bills of entry filed by similarly placed ship breakers, who had procured ship for breaking and had the very same item sludge/sediment oil, which was declared by the said ship breakers in bills of entry dated 28-5-1998 and 29-5-1998, as mentioned hereinabove. If that be so, the marketability of the said product imported, may not be required, but has been proved to be marketable by the trade or commerce of the industry in which the appellant is operating. I also find that there are Government licensed recyclers who are permitted to procure this kind of oil and recycle the same, have given the certificate that said sludge/sediment oil is procured by them and recycled. In my view, though the marketability question does not arise for the goods imported, the Revenue has discharged the said burden. Sludge/sediment oil in the present case is required to be dealt with as marketable and classifiable under Chapter 27, due to the composition of their being found in the chemical examiner’s certificate as mixture of hydrocarbons and held to be marketable - Decided against the assessee. Valuation to the said sludge which has arrived at by the revenue seems to be disputed by the appellant before the lower authorities and the value adopted by the Revenue has not been justified. In my view, since the valuation of the said sludge/sediment is disputed, the correct duty liability needs to be worked out - matter remanded back on the issue of valuation.
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