Re-Export of Imported Waste Oil is not allowable as it is prohibited under the Central Excise Rule: CESTAT [Read Order]

The Delhi Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) has held that the re-export of Imported waste oil is not allowable as it is prohibited under the Central Excise Rule.

M/s Ayyan Energy Resources (P) Ltd. the appellant 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 oil‟ which 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).

A show cause notice dated 29.09.2010 was issued alleging that the appellant had knowingly and willfully misdeclared the imported good and imported it in violation of Foreign Trade Policy 2009-2014 read with Rule 13 (4). The Additional Commissioner passed the order-in-original. On appeal, the Commissioner (Appeals) passed the impugned order upholding the order of the Additional Commissioner but setting aside the personal penalty on the Director of the appellant.

The appellant also submitted that as per Section 125 of the Customs Act the authority must give an option to redeem the goods which were not given to the appellant. It was submitted that the appellant was willing to re-export the waste oil.

The appellant had no licence or permission to import and process “waste oil”. Therefore, the confiscation of the goods under sections 111 (d) and 111 (m) must be upheld as there was not only misdeclaration of the goods but the import itself violated the prohibition under the Rules.

A Coram of Shri V  Durga Rao, Judicial Member and Shri Manoj Kumar Aggarwal, AM observed that since the import of the disputed good was prohibited, the Adjudicating Authority had the discretion to either allow redemption or not.

While upholding the order, the Tribunal held that the Adjudicating Authority has correctly exercised its discretion not to allow redemption of hazardous waste to the appellant. Ms Priyanka Goel, Advocate appeared for the appellant and Shri Nagendra Yadav, Authorized Representative appeared for the Department.

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