The New Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), confirmed confiscation of Low Sulphur Waxy Residue being hazardous waste.
The appellant, M/s Ayyan Energy Resources (P) Ltd imported good described as “Low Sulphur Waxy Residue (fuel oil)” in three containers from Bahrain which, on examination and testing was found to be waste oilwhich was included at S. No. 29 of Schedule VI of the Hazardous Waste (Management, Handling and Trans-boundary Movement) Rules, 2008.
Import of this good was prohibited under Rule 13(4). Accordingly, a show cause notice was issued alleging that the appellant had knowingly and willfully, misdeclared the imported good and imported it in violation of the Foreign Trade Policy 2009-2014 read with Rule 13 (4). The appellant was called upon to explain why the goods should not be confiscated and why a penalty should not be imposed under section 112 (a) of the Customs Act.
The Commissioner (Appeals) passed the impugned order upheld the order confirming confiscation of the Additional Commissioner but setting aside the personal penalty on the appellant. Hence the present appeal has been preferred.
The Counsel for the appellant submitted that the if the imported „waste oil‟ cannot be released to the appellant it may be released to M/s Indo Max Chemical Industries who had the necessary registration to handle it from the Rajasthan State Pollution Control Board. The appellant prays that this request may be accepted and the goods may be released.
The Departmental Representative contented that the appellant cannot export the good to which it does not even have a title as they had been confiscated. He further submits that Import of hazardous waste is a serious environmental challenge to the country and such imports cannot be permitted and no laxity should be shown to such importers.
The Coram consisting of Justice Dilip Gupta, President and P V Subba Rao, Technical Member held that “The imported good, declared as low sulphur wax residue fuel oilwas on testing, found to be waste oil. Import of waste oil is prohibited under the Rules. The appellant had no licence or permission to import and process waste oil. Therefore, the confiscation of the goods under section 111 (d) and 111 (m) must be upheld.”
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