TMI Blog2023 (6) TMI 1014X X X X Extracts X X X X X X X X Extracts X X X X ..... standards. There is a vast difference between the minimum IFB and maximum FBP fixed as per IS standard 1745 and the result received for the impugned goods. Hence, the impugned goods cannot be classified under CTH 27101239 as per the comparison between the Test reports received from CRCL and its comparison with the IS Standard 1745 parameters required. The condition as prescribed in the Note 4 has not been verified in the CRCL report. It is the primary condition required to be tested for classifying any goods under CTH 2712. From the said Note, it is evident that for purpose of sub heading 2710.12, the light oils and preparations are those of which 90% or more by volume (including losses) distil at 210 degree Celsius, but the test report is silent about it. AS per the Test Report, the FBP is 194, which means 100% of the goods evaporate at 194 degree Celsius itself whereas for classification of the goods as solvent 145/205 under CTH 27101239, the requirement as per Note 4 is that only a maximum of 90% should evaporate at 205 degree celsius. Since the entire 100% of the goods evaporate at 194 degree celsius itself, the goods are not meeting the requirements as specified under C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... escription of the goods White Spirit in bulk and re-determined the same as Solvent 145/205 as per IS 1745:2018 . He allowed re-export of the goods imported vide the above said Warehousing Bills of Entry, upon payment of Redemption Fine. He also imposed penalty on the Appellant. The Appellant filed an appeal before the Commissioner (Appeals), who allowed the appeal of the Appellant vide his Order-in-Appeal dated 10/06/2022 and held the classification of the goods under Customs Tariff 27101239 as erroneous and set aside the Order-in-Original and remitted the matter back to the adjudicating authority for proper assessment of the goods. Aggrieved by the Impugned Order, the Appellant is before us. 3. Samples of the impugned goods were drawn and sent to CRCL, Kolkata vide Test Memo Nos. 1080019 dated 13.01.2021 and 1080026 dated 13.01.2021, with a request to specify the following parameters: (i) Colour (ii) Density at 15 C (iii) Viscosity (iv) Flash Point (Abel) (v) Class of Petroleum Product (A, B or C) (vi) Distillation Range i.e. Initial Boiling Point and Final Boiling Point (vii) Whether 90% or more by volume (incl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... leum Act, 1934, which are as given below: i) Petroleum Class A means petroleum having a flash-point below 23 C ii) Petroleum Class A means Petroleum having flash-point of 23 C and above but below 65 C; iii) Petroleum Class C means petroleum having a flash-pint of 65 C and above but below 93 C 8. On the basis of analytical observations, it is observed that the CRCL Test Report confirmed that the goods are of Petroleum Class B . Further, as per Chapter Note 4 of Chapter 27 of the Customs Tariff, for the purposes of sub-heading 271012, light oils and preparations are those of which 90% or more by volume (including losses) distil at 210 C according to the ISO 3405 method (equivalent to the ASTM D 86 Method). On the basis of above CRCL Test Report, it could not be ascertained whether the impugned goods are freely importable or to be imported through State Trading Enterprise (STE) only. Therefore, a letter dated 17.02.2021 was issued to the Chemical Examiner, CRCL, Kolkata to clarify the following: i) Whether the imported goods can be considered as petroleum products namely a. Solvent 60/80 (As specified under standard IS 1745) b. Solvent 50/120 (As s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lls of Entry Nos 2202769 dated 01/01/2021 and 2203997 dated 02/01/2021. Revenue has reclassified the said goods under CTH 27101239 on the basis of Test Report of CRCL, Kolkata, wherein it is stated that the product under reference meets the requirements of light oils and preparations and hence the impugned goods are rightly classifiable as Solvent 145/205 as per IS 1745:2018. 13. In order to decide whether the goods can be classified as solvent 145/205 as per IS standard 1745/2018, it is required to compare the results of the Test Report for the impugned goods with that of the standard requirements for the solvent 145/205 as per IS 1745/2018. A Comparative Chart of the Test Report dated 13.01.2021 alongwith requirements for Petroleum Hydrocarbon Solvent 145/205 as per IS 1745/2018 is furnished below : Lab No./ Marking Density at 15 C in gm/cc Flash Point (COC) Acidit y Ash Content Water Content Anili ne point IBP FBP Aromatic Content % by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t case, sole reliance has been placed by the Ld. Commissioner on the Chemical Examiner s report. As rightly pointed out by the Ld. Advocate that, in the testing report it has been stated that the sample drawn from the appellant s premises is liquid containing mixture of hydrocarbons having distillation range from 35 degree to 58 degree Celsius and flash point below 25 degree Celsius. The classification adopted by the Ld. Commissioner is not in consonance with the Note no. 4 to Chapter 27 of the Tariff which states that Light Oil and Preparations are those of which 90% or more by volume (incl. losses) distilled at 210 degree Celsius, whereas the Chemical Examiner has stated that the range of distillation of product is 35 degree to 58 degree Celsius which is much below 210 degree Celsius. Hence the classification under Chapter 271011 cannot be adopted. Similar observations have been made by the Tribunal in the aforesaid decision. 9. In view of the aforesaid, the classification adopted by the Ld. Commissioner cannot be approved and hence, the entire duty demand, interest and penalty are set aside and the appeals are allowed with consequential relief. The personal penalty imp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sses) distil at 210 C according to the ISO 3405 method (equivalent to the ASTM D 86 method) 18. We find that the above condition as prescribed in the Note 4 has not been verified in the CRCL report. It is the primary condition required to be tested for classifying any goods under CTH 2712. From the said Note, it is evident that for purpose of sub heading 2710.12, the light oils and preparations are those of which 90% or more by volume (including losses) distil at 210 degree Celsius, but the test report is silent about it. AS per the Test Report, the FBP is 194, which means 100% of the goods evaporate at 194 degree Celsius itself whereas for classification of the goods as solvent 145/205 under CTH 27101239, the requirement as per Note 4 is that only a maximum of 90% should evaporate at 205 degree celsius. Since the entire 100% of the goods evaporate at 194 degree celsius itself, the goods are not meeting the requirements as specified under Chapter Note 4 of Chapter 27, accordingly we hold that the impugned goods cannot be classified under CTH 27101239 as claimed by the Revenue. 19. The Appellant stated that they have imported ten consignments of white spirit in the past ..... X X X X Extracts X X X X X X X X Extracts X X X X
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