TMI Blog2024 (2) TMI 683X X X X Extracts X X X X X X X X Extracts X X X X ..... at during first round of litigation, department had produced two bills of entry - No. SBY-III/24/98-99 dated 29.05.1998 filed by M/s. G. N. Ship Breakers, Bhavnagar and No SBY-III/22/98-99 dated 28.05.1998 filed by M/s Kothi Ship Breaking Industries, Bhavnagar, wherein the respective importers had shown Sludge Oil and valued the same @ USD 120 PMT. However, as discussed above, this price cannot be taken to be value of the goods in question - the two importers viz. M/s. G. N. Ship Breakers as well as M/s. Kothi Ship Breaking Industries have declared the value of Lubricating Oil at USD 420 PMT in their respective bills of entry and therefore, the SCN has taken that value for calculating the demand amount on the oil (so called sediment/sludge) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The adjudicating authority and the appellate authority had come to the conclusion for fixing the price value of USD 420 MT, which is in respect of the Lubricating Oil that the sludge/sediments found in the vessel is not in the nature of sludge/sediments but it is lubricating oil. 2. Shri Rahul Gajera, Learned Counsel appearing on behalf of the appellant submits that the department could not establish that the sludge/sediments found in the vessel imported for breaking is a lubricating oil. Therefore, enhancing the value and applying the value of lubricating oil in respect of the sludge/sediments is on assumption or presumption. Therefore, the same is not sustainable. 3. Shri A R Kanani, Learned Superintendent (AR) appearing on behalf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... il (so called sludge/sediment) imported alongwith the said vessel was having very less impurities and that it was in commercial quantity, the value pertaining to sludge/sediment cannot be applied to the imported item. Further, I find that department had asked the oil companies who are regularly importing oils for giving an opinion, after perusing the test report given by CRCL, Kandla and M/s 10CI. vide letter dated 26.03 2008 had opined that- From the test results of the samples of sludge/waste oil obtained from the storage tank of the ship brought for breaking it appears that the residual sludge/waste oil is of a different type of mineral hydro carbon/marine oil used by vessels and not the tank bottom crude oil sludge which sometimes rema ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce it contains impurities, the same cannot be valued at the price of Lubricating Oil. 4.1 The Commissioner (Appeals) concurring with the above finding of the original order, upheld the valuation of goods at USD 420 per MT. We find that from the above finding, no material evidence was adduced by the department to come to conclusion beyond doubt that the goods found in the vessel was lubricating oil and not the sludge/sediments. Therefore, without any evidence, applying the value of USD 420 MT which is of lubricating oil is on assumption and presumption basis. In the finding itself, it was admitted that the value of the sludge oil is USD 120 per MT. 4.2 It is also fact that the department could not establish conclusively that the goods ..... X X X X Extracts X X X X X X X X Extracts X X X X
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