9911796707
TMI Blog2023 (6) TMI 156X X X X Extracts X X X X X X X X Extracts X X X X ..... ents under 41 Bills of Entry have been rejected under Rule 12 of Customs Valuation (Determination of Value of Imported Goods) Rules, 2007 (hereinafter referred to as 'Customs Valuation Rules, 2007) and have been re-determined under Rule 5 of the Customs Valuation Rules, 2007 upon the allegation that the goods imported as 'machinery oil' /machinery lubricant oil' by the Appellant was actually 'base oil'. The said allegation has been made on the basis of test reports allegedly obtained from CRCL, Kolkata and CRCL, New Delhi where CRCL, Kolkata reported that 'No reference/specification of machinery oil medium grade is available here. Hence, its trade identity sales grade of the sample u/r may be ascertained at your end' and CRCL, New Delhi opi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd as such, demand of any differential duty prior to finalization of the assessments is bad in law. The Show Cause Notice issued u/s 18(2) read with Section 17 & Section 124 of the Customs Act, 1962 is not maintainable in law. Reliance is placed in the decision of the Hon'ble High Court of Calcutta in the case of Jaju Petro Chemicals Pvt. Ltd., Vs. Commissioner of Customs (Port),[2017 (354) ELT 614 (Cal)]. 3. The Hon'ble High Court, Calcutta while remanding the present matter before this Tribunal vide Order dated 18.11.2022 in CUSTA/20/2022 [Commissioner of Customs (Port), V. Sri Rahul Jhajharia, Prop. Of M/s JJR Associates] has observed that 'Thus the Tribunal is left with only one task that is to examine the experts' report and then come ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... R, Dehradun with respect to some other case, which is absurd and not maintainable in law. In other words, the change of classification of imported goods in the present case by the respondent Customs Authority is not supported or corroborated by the test report from CRCL, Kolkata and / or CRCL, New Delhi. The suggestion of CRCL, in the said test reports provides that the samples 'may be' of base oil, which means it 'may not be' of base oil. Such test reports cannot be basis of conclusion that the goods imported were mis-declared and hence, such change of classification is seriously bad in law and liable to be quashed. 6. With respect to the other finding that the Appellant had supplied 'base oil' to M/s. Balmer Lawrie & Co. Ltd., as per Sup ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xure-A. 7. That from the facts of the present case it would be evident that allegation of supply of 'base oil' to M/s Balmer Lawrie & Co. Ltd., by the Appellant out of the imported stock, is absolutely erroneous and hence, conclusion on the basis of such erroneous fact that the imported goods of the Appellant were 'base oil', is liable to be quashed. 8. It is further submitted that the reliance on the purported statements recorded from Sri Rahul Jhajharia at the time of investigation in this regard, is of no consequence since the same were involuntary and retracted immediately after recording of such statements dated 04.03.2014 and 28.10.2014. retractions were made by way of affidavits dated 05.03.2014 and 29.10.2014, as is available on-r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lue for the purpose of assessment. It is settled position of law that unless the transaction value could be established to be improper upon the finding that import invoices were either fabricated or fake or that any relationship exists between the importer and the exporter, the transaction value has to be accepted as correct value for assessment under Rule 3 of the Customs Valuation Rules, 2007. Reliance is placed in this regard upon the decisions of the Hon'ble Supreme Court of India in the case of Commissioner of Customs, Mumbai Vs. Mahalaxmi Gems [2008(231) ELT 198 (S.C.)] and in the case of Commissioner of Customs, Mumbai Vs. J.D. Orgo Chem Ltd., [2008(226)ELT 9 (S.C.)]. 11. That in the present case, as stated supra, there is nothing o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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