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TMI Blog2016 (9) TMI 973X X X X Extracts X X X X X X X X Extracts X X X X ..... o those that had been cleared on earlier occasions, the option to redeem on payment of fine only for re-export within 90 days of the order. In addition, penalties were also imposed. Duty liability on past imports was also enhanced. 2. A form of rubber processing oil is used to manufacture an input which finds extensive uses in the rubber industry and India is one of the high-ranking importers. They are generally of aromatic, naphthenic or paraffinic origin. This product had, for long, been classified under 2710 of the First Schedule of the Customs Tariff Act, 1975. Duty applicable to this classification was reduced to 5% vide notification no. 52/2011-Cus dated 25th June 2011. Central Board of Excise & Customs also clarified that goods would be classifiable under this heading only to the extent that it conforms to Note 2 of Chapter 27 i.e. the aromatic constituents should not exceed, by weight, the non-aromatic constituent. The practice of drawing samples commenced after this clarification and these were being tested at M/s Geochem, Mumbai. In December 2012, the laboratory attached to the Customs House at Kandla intimated that it was capable of ascertaining aromatic content by ASTM ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fiscated goods to be redeemed for re-export on payment of fine of Rs. 10,00,000. As the facts relating to the appeals are common and the imports have also been effected in common, we take up all of them for disposal by a common order. 4. The tortuous windings of the clearance procedures and its travel through the appellate hierarchy have obscured the simplicity of the contentions in dispute. Attributable partly to the alleged revenue bias in the proposal to reclassify what was till then a routine import that was, in addition, deprived the privilege free importability and partly to the apparent credibility deficit, occasioned by the peculiar circumstances involved, of the technical accessory of the customs administration viz. the Central Revenue Control Laboratory. A word picture of the episodes that occurred after arrival of the vessel Al Kabeer laden with the product that is at the centre of the dispute may well assist in cutting through the mass of verbiage to the core of the issue. 5. The vessel arrived in January 2013 and discharged its cargo into bonded tanks for warehousing. The goods were classified under 27101960 as base oil and samples drawn were sent to CRCL Delhi for t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... report states "It does not meet the requirement of petroleum based rubber process oil as per IS:15078:2001in respect of Kinematic Viscosity and Density, hence it is off specification/waste product as per listed basel No. A4140 under Schedule III, part A of Hazardous Waste (Management, Handling & Trans Boundary) Rules, 2008 since PAH content in this sample are more than 50mg/kg, therefore, it merits to fall under the category of Hazardous Waste in respect of waste constituents listed under Class A of Schedule II of Hazardous Waste (Management, Handling & Trans Boundary) Rules, 2008." and as such goods require (i) Prior informed consent of the country from where it is imported (ii) Licence issued by the Director General of Foreign Trade and (iii) Prior written permission of the Central Government which they were unable to furnish, the goods could not be allowed as imports into the country. 8. It is further held that in relation to other Bills of Entry the drawn sample sent for testing was also similarly offending. In grounds of appeal it is contended that there is no cogent reason in the impugned order for refusal of their request for sending of sample for re-testing espe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of appellant that it was the alteration of the duty structure which prompted Revenue to dispute the classification and that it was the newly-minted capacity of CRCL to test the import product for conformity with the notes in the tariff and the IS specification that led to consequent prohibition of an import that, till then, was freely allowed. 11. It is seen from the Rules supra that the import of hazardous waste is permissible only in certain ports by those who have erected a facility for reprocessing of such waste. 12. As per note 2 of Chapter 27 of first schedule of Customs Tariff Act, 1975 heading of petroleum oils and oils obtained from bituminous minerals include not only petroleum oils and oil obtained from bituminous obtained by any process but also similar oils as well as those consisting mainly of mixed unsaturated hydrocarbon obtained by any process, provided that the weight of the non-aromatic constituents exceeds that of aromatic constituents. 13. It would appear that the process of refining crude oil and the removal of prime products leave residues which find use in rubber industry as fillers. However such residue is suspected to contain chemicals that are inimi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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