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2022 (1) TMI 172 - AT - CustomsMis-declaration and mis-classification of goods - machinery oil - machinery lubricating oil - to be classified under CTH 27101950 and CTH 27101980 respectively or not - intelligence indicated that the average price of base oil is about US $ 900-1100 per MT whereas the importer in this case has declared a price of US $ 490-500 per MT - appellant sought cross-examination of the chemical examiners which was denied - violation of principles of natural justice - HELD THAT:- It is found from the impugned order that there is no recording of any cross-examination of the chemical examiners for the test reports. The allegation in the show cause notice as confirmed in the impugned order is that the appellant has misdeclared the nature of goods. The appellant imported base oil and declared it as machinery oil and also claimed wrong classification in this bill of entry.Since the description of the goods was held to be not correct, the declared assessable value was rejected under Rule 12 of the Customs Valuation (Determination of Value of Imported Goods) Goods, 2007 and redetermined under Rule 5. Accordingly, the assessment of the bills of entry which were provisionally assessed was ordered to be finalized and the differential duty was ordered to be recovered. It is unfair to allege that the appellants have mis-declared the goods without any categorical finding of an expert that the imported goods were NOT machinery oil and then allowing cross examination of such expert(s) by the appellant to prove its case and contest the expert opinion. In this case, while the test reports that have been relied upon as recorded in the impugned order only suggested that the goods “may be base oil” and NOT that “they are base oil”. Further, the reports also do not say that the goods are “not machinery oil” as described by the importer. Thus, there is an ambiguity in the test reports - there is a need to allow the appellant to cross-examine all the chemical examiners whose test reports were relied upon in the impugned order so that a categorical, authentic finding may be recorded as to whether the imported goods were base oil or machinery oil or whether they can be described as both. Matter remanded back to the Commissioner of Customs with a direction to allow cross-examination of all the experts whose reports were relied upon and after giving the reasonable opportunity of being heard, pass an order - appeal allowed by way of remand.
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