Danish Impex Vs Commissioner of Customs (CESTAT Mumbai)
CESTAT Sets Aside Kerosene Reclassification Because Laboratory Reports Tested Only Some BIS Parameters; CESTAT Quashes Customs Demand Because All Mandatory BIS Tests Were Not Conducted; Imported Goods Cannot Be Treated as Kerosene Without Complete BIS Compliance Testing; CESTAT Rejects Kerosene Classification Because Customs Test Reports Were Inconclusive.
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Mumbai, heard appeals filed by Danish Impex challenging Orders-in-Appeal dated 25.06.2021 and 05.10.2023 passed by the Commissioner of Customs (Appeals), Nhava Sheva.
The appellant had imported goods described as “Industrial Composite Solvent” under Customs Tariff Item (CTI) 3814 0010 through Bill of Entry dated 12.03.2019 for a quantity of 108.120 MTs. The goods were initially cleared through the Risk Management System without detailed examination. Subsequently, based on intelligence gathered by the Central Intelligence Unit (CIU), the goods were physically examined. The CIU officers observed that the goods were colourless petroleum-smelling liquid and drew representative samples for chemical testing.
The Deputy Director of Central Revenue Control Laboratory (DYCC Laboratory), after testing certain parameters, reported that the goods met specifications under IS 1459:1974 for Superior Kerosene Oil (SKO). Based on this report, the goods were seized. Following further investigation, re-testing was conducted by the Central Revenue Control Laboratory (CRCL), New Delhi, which also reported that the goods met specifications for kerosene/SKO under IS 1459:2018.
