Auto Stores (India) Vs Commissioner of Customs (CESTAT Mumbai)
The Customs, Excise and Service Tax Appellate Tribunal allowed eight identical appeals filed by importers against common orders passed by the Commissioner of Customs (Appeals), Mumbai-II, which had confirmed reclassification, enhancement of valuation, confiscation, redemption fine, and penalties in respect of imported goods described as “penetrating oil-60.” The appeals arose from a single intelligence-based action by the R&I Division of Customs, Mumbai, leading to seizure of live consignments on 01.02.2024 and Orders-in-Original dated 25.07.2024, later upheld in appeal on 03.11.2025.
The appellants had imported multiple consignments declared as “penetrating oil-60 (for industrial use)” under Customs Tariff Heading (CTH) 3403 9900, applicable to industrial lubricating preparations. The goods were subjected to first check examination and CRCL testing. Test reports indicated that the product did not meet the BIS specification for automotive diesel under IS 1460 but contained a mixture of hydrocarbons with more than 70 percent petroleum fractions by weight. Based on this, the Department concluded that the goods were “adulterated diesel,” reclassified them under CTH 2710 1990, adopted valuation applicable to high speed diesel, and confirmed differential duty, interest, penalties, confiscation, and redemption fines. Additional allegations were raised regarding violation of Rule 30 of the Petroleum Rules, 2002, on the ground that petroleum products were imported in plastic flexi tanks.
