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2022 (5) TMI 588 - AT - CustomsRe-classification of imported goods - Mineral Hydrocarbon Oil - Mixed Mineral Hydrocarbon Oil - freely importable goods or not - whether the Revenue was correct in re- classifying the imported goods declared as “Mineral Hydrocarbon Oil-CTH 27101988 and Mixed Mineral Hydrocarbon Oil-CTH 27101990” as diesel under CTH 27101944 and as Superior Kerosene Oil under CTH 27101932? - confiscation - redemption fine - penalty. HELD THAT:- It is admitted position of law that for a product to be classified under CTH 27101944/27101932 as SKO, it has to meet with the specifications in Supplementary Note – (C) under Chapter 27 - Thus, the product or material shall consist of refined petroleum distillates. It shall be free from visible water sediments and suspended material. The material shall also comply with the requirements given in Table-I, when tested according to the appropriate method prescribed under ‘P’ Series of IS:1448, reference to which is given in Col.4 of the Table-I. Reliance placed in the Apex Court in HINDUSTAN FERODO LTD. VERSUS COLLECTOR OF CENTRAL EXCISE, BOMBAY [1996 (12) TMI 49 - SUPREME COURT], wherein it was observed that, “ it is not in dispute before us as it cannot be, that onus of establishing that the said rings fell within Item No.22 lay on the Revenue. Revenue has led no evidence. The onus was not discharged, therefore, the Tribunal was right in rejecting the evidence that was produced on behalf of the appellant, the appeal should nevertheless have been allowed.” It is further noticed that the appellant had sought cross examination of the persons, whose statements were relied upon by the Revenue in support of its allegations. But the cross examinations have been denied arbitrarily. Thus the impugned order is bad for violation of principles of Natural justice as well as the mandate of section 138B of the Act. The goods under import are to be classified as per CTH heading claimed/declared by the appellant in the bills of entry. Accordingly, we hold that rejection of transaction value is also bad and thus, declared value has to be accepted. Redemption fine and penalties on the appellants are also set aside - appeal allowed - decided in favor of appellant.
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