Aparajita Energy Private Limited Vs Union of India (Gujarat High Court)
Summary: The Gujarat High Court allowed the writ petition filed by Aparajita Energy Private Limited and quashed the seizure memo issued by the Directorate of Revenue Intelligence in respect of imported bulk liquid cargo declared as Distillate Fuel Oil SRFO. The cargo had initially been tested by the Central Revenues Control Laboratory (CRCL), Vadodara, which reported that the samples met the requirements of Distillate Marine Fuel under IS 16731:2019. Subsequently, samples drawn during DRI investigation were tested at CRCL, Delhi, whose report stated that the goods did not meet the requirements of Distillate Oil because of the Cloud Point parameter and further observed that the sample had characteristics of Automotive Diesel Fuel. The Court examined the 14 parameters in the Delhi laboratory report and noted that the reported values complied with the specified requirements except for Cloud Point.
Relying upon clarification issued by the Director of CRCL concerning similar cargo, the Court held that the significance of Cloud Point depends upon the intended use and climatic conditions and therefore could not, by itself, justify seizure of Distillate Marine Fuel. The Court also found the observation that the sample had characteristics of Automotive Diesel Fuel to be ambiguous because the report did not identify the extent or specific parameters by which the character of the goods had changed from Distillate Oil to Automotive Diesel. The Court relied substantially on the Supreme Court’s decision in Gastrade International, which requires application of the “most akin” test rather than merely the test of preponderance of probability where laboratory evidence is ambiguous or inconclusive.
