SUPER OIL COMPANY Vs. UNION OF INDIA

JUDGEMENT

(1.) The petitioner, a Partnership Firm, is engaged in the business of importing, inter alia, Pressed Distillate Oil (for short 'PDO') with its office situated at Ludhiana. The petitioner filed a Bill of Entry on 30.06.2011 importing one consignment of "PDO", which was detained by the Customs Authorities, doubting the description of the goods as "PDO". Samples in terms of Section 144 of the Customs Act, 1962 (in short 'the 1962 Act') were drawn and sent for testing to two (02) different laboratories, namely, Punjab Tent House and CRCL, New Delhi. Upon receipt of test report dated 14.07.2011 (Annexure P-1) from the Punjab Tent House confirming the material as PDO, the Proper Officer provisionally assessed the Bill of Entry and the goods were cleared after payment of duty based on such provisional assessment. Subsequently, a report dated 24.08.2011 (Annexure P-2) was received from the CRCL, New Delhi, with the observation that there was no specification of "PDO" available with them.

(2.) The Directorate of Revenue Intelligence (in short 'DRI'), thereafter on 28.01.2013, searched the residential and business premises of the petitioner and drew samples of the said goods on 12.02.2013 for testing by CRCL, New Delhi, which vide its subsequent report dated 14.03.2013 reported that the samples had the characteristics of "Base Oil". The Customs Authorities based on the said report issued the impugned Show Cause Notice dated 07.02.2014 (Annexure P-6) for mis-declaration of value and description of goods, inviting payment of duty on the value of Base Oil and penalty under Section 112 of the 1962 Act, thereby finalizing the assessment.

(3.) Counsel for the petitioner has raised two fold arguments :-