Revenue Department has discretion to allow/disallow redemption of prohibited hazardous waste

Ayyan Energy Resources (P) Ltd Vs Commissioner Customs (CESTAT Delhi)

Revenue Department has discretion to allow/disallow redemption of prohibited hazardous waste – CESTAT confirms Confiscation of Low Sulphur Waxy Residue being Hazardous Waste

The CESTAT, New Delhi in M/s Ayyan Energy Resources (P) Ltd. v. Commissioner [Customs Appeal No. 567 of 2011 dated December 6, 2022] upheld the order passed by the Revenue Department confiscating the waste oil and imposing the penalty on import of the same. Held that, the re-export of imported waste oil is not allowable as it is prohibited under the Hazardous Waste (Management, Handling and Trans-boundary Movement) Rules, 2008 (“HWR”).

Facts:

M/s Ayyan Energy Resources (P) Ltd. (“the Appellant”) imported good described as “Low Sulphur Waxy Residue (fuel oil)” from Bahrain which on examination and testing was found to be “waste oil” which was included at S. No. 29 of Schedule VI of the HWR. Whereas, import of waste oil is prohibited under Rule 13(4) of HWR. Accordingly, a Show Cause Notice (“SCN”) was issued alleging that the Appellant had willfully mis-declared the imported goods and also imported it in violation of paragraph 2.7 of Foreign Trade Policy 2009-2014 read with Rule 13(4) of the HWR. The Appellant was called upon to explain why the imported goods should not be confiscated and why a penalty should not be imposed under Section 112(a) of the Customs Act, 1962 (“the Customs Act”).

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