Home Case Index All Cases Customs Customs + AT Customs - 2015 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (2) TMI 297 - CESTAT BANGALOREDemand of differential duty - Re classification of goods - import of base oil - Rejection of declared value - Held that:- This means that to be classified under ‘lubricating oil’, flash point has to be below 93.3° C. The CTH of ‘lubricating oil’ under 2710 19 80 simply mentions the heading as ‘lubricating oil’. Similar is the position with regard to description under tariff heading 2710 19 60 ‘base oil’ which is the heading claimed by the appellant. However, there is no definition of ‘base oil’ in the chapter notes. The sum and substance of the above discussion is that the only criterion considered for classification of ‘lubricating oil’ is flash point. In this case, according to the report of Customs House Laboratory, the flash point of the imported product is above 94° C. Once the flash point is above 94° C, the product cannot be classified under heading ‘lubricating oil’ at all, since the flash point has to be below 93.3° C. This vital aspect has not been considered by both the lower authorities. When the tariff heading and the description is based only on the flash point, the reliance on other aspects to reclassify the item, in our opinion, may not be proper at all. On this ground alone, it is seen that the reclassification cannot be justified. Once reclassification cannot be justified unless it is shown that the product is not base oil, the Revenue cannot make out a case against the appellant. In view of the above, we do not find any justification to uphold the impugned order - Decided in favour of assessee.
|