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2022 (8) TMI 1061 - AT - CustomsRate of duty - Confiscation of goods - base oil grade-12 - Import of ‘high flash high speed diesel’ which is ‘canalised’ - to be classified under tariff item 2710 1949 or under tariff item 2710 1971 of First Schedule to Customs Tariff Act, 1975? - HELD THAT:- It is not in dispute that the impugned goods are ‘high flash high speed diesel’ which is ‘canalised’ for import and did not conform to declaration in the bill of entry; consequently, the application of the appropriate rate of duty cannot be cause of cavil. Though appellant did challenge the denial of effective rates of duty, that grievance is academic in the backdrop of intention to re-export which restricts the present proceedings to confiscability of the goods and imposition of penalty. The impugned goods are permitted to be imported only by specified agencies; this is not a measure of protection but is mere extension of the scheme of petroleum product distribution in India. It, therefore, begs the question of wherewithal available to the appellant to undertake storage and marketing of diesel. It is also less than certain that potential customers could be persuaded to procure a commodity, that is considered to be adulteration-prone, from an unknown entity - the failure to ascertain the market value is in breach of section 125 of Customs Act, 1962. The fine demanded for redemption must be set aside on that count alone. Furthermore, in the light of the peculiarity of petroleum marketing and consumption in the country, private imports, even at much lower rates of duty and reduced pricing, commercially lack feasibility enough to give credence to the claim of the appellant that goods had been mistakenly despatched. The confiscation of goods under section 111 of Customs Act, 1962 as well the penalties imposed under section 112 of Customs Act, 1962 is set aside - appeal allowed.
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