TMI Blog2018 (12) TMI 1541X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessing authority for having an appropriate test undertaken at such institution that has expertise in oceanography - appeal allowed by way of remand. - C/21347/20180-DB and C/21365/2018 - Final Order No: 21933-21934/2018 - Dated:- 27-12-2018 - MR SS GARG, JUDICIAL MEMBER And MR CJ MATHEW, TECHNICAL MEMBER Mr Balagopal M, Advocate, Mr Leejoy Mathew V For the Appellant Mr PRV Ramanan Special Counsel For the Respondent ORDER Per: C J MATHEW Squalane conjures up images of those terrifying denizens of the deep whose lack of swim bladder is compensated by this compound stored in their bodies. The primary critique of Learned Counsel for M/s Aasha Biochem that it is assumptions and premises such as these and far removed from facts that was relied upon by the first appellate authority does give us cause to pause and ponder. Besides pointing to this interpolation of an hitherto unrecorded proposition that the shark hunting so rampant in Somalia as sufficing to establish that squalene, acknowledged to be shipped by a vendor in that country, is of marine origin and thus to be re-classified before being confiscated as prohibited goods attempted to be illicit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he description, of the compound is not in dispute, Learned Counsel argues that the test results offered in evidence for revising the classification suffers from bias and misinterpretation which renders the conclusion based on those to be unsustainable. He, with the assistance of learned tomes, also elaborated at length on the accuracy of description of the goods as acyclic hydrocarbons. 4. To relieve the Bench from the tedium of repetition, Learned Counsel for M/s Aarbee Biomarine Extracts Pvt Ltd adopted the arguments of his learned colleague at the bar and went on to question the adoption of test reports, pertaining to other imports, without placing them on notice. He further contends that the imports were effected for processing before exports and the absence of duty implication relegates the entire exercise that of academic. A final plea in relation to both appeals is that the overwhelming predominance of squalane in the test samples would place the goods, according to General Interpretative Rules for the Harmonised System of Nomenclature, under the claimed classification and that the extraction of squalane from plant source is now quite common in the industry. 5. L ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e appellants. 8. It cannot but be noticed that the classification claimed by the appellants under the heading of unsaturated acyclic hydrocarbon other than ethylene, propylene, butylene, butadiene, acetylene or heptene , is of too broad a spectrum to gain approval without reference to the General Interpretative Rules. It appears to have stemmed from the chapter title, molecular composition and the principle of dominating constituent. It is clear from rule 1 of General Interpretative Rules, which discards titles as irrelevant to classification, that every organic chemical need not necessarily find placement in the said chapter unless in conformity with the appropriate heading and sub-heading. As the specific descriptions within the heading acyclic hydrocarbon , admittedly, do not find direct fitment for the imported goods, the dominance principle is resorted to by Learned Counsel for appellants. The dominance principle in rule of General Interpretative Rules applies appropriately to classification of mixtures and, in the light of assertion of Learned Counsel that the content, other than squalene , in the imported goods are impurities, the claim for application thereof is self- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd on a different footing. as held by the Hon ble Supreme Court in Dunlop India Ltd Madras Rubber Factory Ltd v. Union of India others [1983 (13) ELT 1566 SC]. Validation of the alternative classification urged by Revenue will, therefore, discredit that claimed by appellant. 10. The samples of imported products were subject to testing at different laboratories. There is no clear cut finding of presence of oil of marine origin though, at the same time, not entirely ruled out. The dominance of squalane is beyond question but its source may yet taint the import. It is contended by Learned Counsel that the test effected by Central Institute of Fisheries Technology was stretched, with much labour demonstrated in subsequent inquiry for clarification, to preclude an absolute finding of plant as a source and merits discrediting as evidence of the source being marine. This plea appears reasonable as, admittedly, both Central Institute for Fisheries Technology and Interfield Laboratories lacked the wherewithal to identify the source which cross-examination of the author of the report would have elicited. However, the corresponding claim of plant life as the source of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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