SOUTHERN REFINERIES LTD. Vs. COMMISSIONER OF CUSTOMS, COCHIN

JUDGEMENT

(1.) THE appellant is aggrieved by the imposition of penalty of Rs. 2,00,000/ - by the adjudicating authority on the ground that waste lubricating oil imported by them in December 1996 for reprocessing and conversion into lubricating oil by vacuum distillation was liable to confiscation under Section 111(d) of the Customs Act, 1962.

(2.) WE have heard both sides.

(3.) IT cannot be disputed that import of waste oil is covered by the category of hazardous waste for which authorisation from the State Pollution Control Board under Rule 11 of the Hazardous Waste (Management and Handling) Rules, 1989 is required, and import is permissible only against a valid import licence, which the appellant did not possess. Therefore, the goods are clearly liable to confiscation. This being so, the appellant is also liable to penalty under Section 112 of the Customs Act, 1962. However, in the totality of the facts and circumstances of the case, including the value of the imported goods, we reduce the penalty to Rs. 1,00,000/ -.