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2016 (9) TMI 976 - AT - CustomsDemand of differential duty - imposition of penalty - Declaration of consignments - Pressed Distillate Oil - Base Oil - chemical examination of the consignments - no clear statement by chemical examiner. Only indication that the samples have the characteristics of Base Oil - denial of Cross Examination of the chemical examiner before the Adjudicating Authority - principles of natural justice - Held that: - In the absence of conclusive evidence of mis-declarations, the Customs Authorities have gone with the declaration and finalized the assessments. Valuation of imported goods - rejection of Declared value - Rule 12 (1) of Customs Valuation Rules, 2007, read with Section 14(1) of Customs Act - Held that: - The SPI classification for ‘base oil’ divides it into five groups based on three parameters.(i) Sulpher %(ii) Saturates %(III) Viscosity Index. The chemical examiner has not indicated the first two characteristics, viz, sulphur % and saturates in his report. Reference has been made only to one of the three parameters mentioned in API. This limited approach to decide the mis-declaration is incorrect. At the most, the viscosity index may raise doubt in our minds that the imported goods may be base oil. However, to conclude that the imported goods were not PDO but ‘base oil’ and allege mis-declaration on the part of the importer only on the basis of the chemical examiner’s report on one out of three characteristics will not be correct - the mis-declaration in the imported goods have not been established. Consequently, there is no basis the disregard the declared value. No valid reason to reject the classification or valuation of imported goods - demand of duty and imposition of penalty failed - consignments to be released immediately - appeal allowed - decided in favor of appellant.
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