The Ahmedabad Bench of the Customs, Excise and Service Tax Appellate Tribunal ( CESTAT ), CESTAT quashed suspension of Customs Broker Licence on the ground that there was no proof on manipulating boiling point of samples of Superior Kerosene Oil (SKO). The MAT Shipping is the appellant in the present case.
The DRI under suspicion that these importers are importing SKO in the guise of Industrial Composite Mixture Plus/Low Aromatic White Spirit. The SKO is a restricted item for import in India. The DRI suspected that these importers were obtaining fabricated test reports to avoid the detection of the true identity of goods tobypass the restrictions imposed by Ministry of Commerce.
On the strength of the investigation conducted the appellant’s license was suspended and a show cause notice was issued by Principal Commissioner. The fundamental charge against the appellant is that the appellant tried to influence the officers of the Custom laboratory, Kandla for issuing fabricated test report in order to avoid the material getting classified as SKO falling under Customs Tariff heading No.27101910 which is of restricted nature.
The notice has alleged that though the imported goods were SKO falling under Customs Tariff Heading No. 27101910 but the same were mis-declared as ICMP (Industrial Composite Mixture Plus) falling under Customs Tariff heading 27101910.
The main charge of misconduct against the appellant is that he had tried to influence the officers of Kandla Laboratory and take care that the ‘final boiling point’ of the cargo should be below 240 Celsius. It has been alleged that this was done in order to ensure that the goods imported by the various importers through the appellant did not qualify as SKO but qualified as ICMP. It is seen that other than alleged manipulation of final boiling point, there is no other manipulation by the appellant from the officers of the Chemical Laboratory, Kandla
The Counsel for the appellant argued that the appellant has not violated Regulation 10(i) of CBLR, 2018 and there is no evidence to prove that the appellant had any conversation or deal with the chemical examiner and further pointed out that to substantiate their claim, the report was manipulated in connivance with chemical examiner.
A Coram consisting of Ramesh Nair, Judicial Member and Raju, Technical Member observed that “It is not understood as to how the appellant could have helped the importers by manipulating the final boiling point of the samples to below 240 Degree Celsius as alleged in the show cause notice. The above objective of taking the goods out of the description of SKO could only have been achieved if the final boiling point was above 300 Degree Celsius.”
“This dichotomy has not been clarified in the impugned order. Since all the charges essentially flow from this fundamental charge of manipulating test report therefore, the impugned order in the present stage cannot be sustained unless the above dichotomy is explained” the Tribunal noted.
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