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TMI Blog2016 (9) TMI 976X X X X Extracts X X X X X X X X Extracts X X X X ..... s-declaration, he proceeded to enhance the transaction value of imported goods from Rs. 57.38 Lakhs to Rs. 2.11 Crores on the basis of contemporaneous imported price of 'base oil'. He finally demanded the differential Custom Duty and imposed penalty on the importer and other persons, who were involved in the import. 2. The appellant has challenged this order mainly on the following grounds: (i) The imported goods have been declared as 'Pressed Distillate Oil' (PDO). The Revenue has not proved beyond doubt that the imported goods were not PDO. The chemical examiner has only indicated that the material has the characteristic of 'base oil'. On this basis, the imported goods cannot be said to be mis-declared, since the PDO, which arises prior ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t (% by mass) Nil Nil Flash Point (COC) Above 2400C 2500C Density (gm/ ml) at 150C 08948 0.9012 Kinematic Viscosity @ 400 C 118.7 CST 95.526 CST Kinematic Viscosity @ 1000C 12.3 CST 10.59 CST Viscosity index 93 92.58 Total Acid Numbers (TAN) mgKOH/gm) 0.02 Nil Total base numbers (TBN) mgKOH/gm Nil Nil It has the characteristics of base oil. Note:- As per technical in the available in this laboratory no product in this name of pressed distillate was found. 5. The Commissioner in the impugned order relied on the chemical examiner reports which stated that the samples have the characteristics of 'base oil'. He further referred to the Technical Literature from the American Petro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e chemical examiner's test reports are crucial in this case. In the reports (para 4 supra), we find that the chemical examiner has indicated that the samples have the characteristic of 'base oil'. From the note appended at the bottom of the reports, it appears to us that the chemical examiner were not in possession of any technical literature about the product PDO. The memo sent by the DRI to the chemical examiner requested him to confirm whether the goods were PDO or not. From a perusal of the test reports we get impression that the chemical examiner has not categorically given his finding or answer to the memo. He has only indicated that the goods have the characteristics of 'base oil' without giving his opinion whether the goods we ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es % (III) Viscosity Index 10. From the examiner's test reports, we find that the viscosity index of the two samples (93 and 92.58) fall within the characteristic of 'base oil', as per API classification system. However, the chemical examiner has not indicated the first two characteristics, viz, sulphur % and saturates in his report. The imported goods have been held to be base oil in the impugned order on the basis of the API classification. However, reference has been made only to one of the three parameters mentioned in API. We are of the view that this limited approach to decide the mis-declaration is flowed. At the most, the viscosity index may raise doubt in our minds that the imported goods may be base oil. However, to conclude th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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