Gastrade International Vs Commissioner Of Customs (Supreme Court of India)
Importer be given benefit of doubt in a case where classification adopted by the Department cannot be accepted due to inconclusive evidence.
The real test for classification would be as to whether any goods or substance in question is “most akin” or bears the closest resemblance or similarity to any of the specified goods mentioned under the Headings and relative Section or Chapter Notes under the Tariff Act, and not by applying the test of preponderance of probability
The Revenue authorities cannot take action against the appellants on the basis of inconclusive evidence where the test reports are incomplete and expert opinion is non-committal.
Facts of the case:
The Appellant imported certain goods claiming the same to be “Base oil SN 50”. However, the Department classified the same as High-Speed Diesel (HSD), ordered confiscation of the same apart from levying penalties.
It was alleged that as per Import Policy ITC (HS), 2017, High Speed Diesel (HSD) and Low Diesel Oil (LDO) are covered under the EXIM Code 27101930 and 27101940 and in terms of policy as notified under Notification dated 20.05.2015 issued by the DGFT Department of Commerce, these items could be imported only by the State Trading Enterprises and thus, not by appellants.
