CESTAT Ahmedabad Upholds Classification of Petroleum Solvent as Freely Importable

ALO Law Office- IDT Tax I Arbitration I Litigation

Date: 16.05.2025

CESTAT Ahmedabad Upholds Classification of Petroleum Solvent as Freely Importable

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Ahmedabad Bench has delivered a significant judgment in Customs Appeal No. 11476/2017, setting aside the confiscation and penalty orders imposed on Gastrade International. The core issue pertained to the correct classification of imported Petroleum Hydrocarbon Solvent (125/240) Grade MTO—whether it should be treated as a freely importable product or a restricted one requiring State Trading Enterprise (STE) import route.

Case Snapshot

• Importer: Gastrade International, Gandhidham
• Product: Petroleum Hydrocarbon Solvent (MTO grade)
• Declared Classification: CTH 2710 19 90 (“Others” – freely importable)
• Customs Reclassification: CTH 2710 12 90 (“Light oils and preparations” – restricted)
• Penalty and Fine Imposed: ₹15 lakh (fine), ₹7.5 lakh (penalty) under Sections 111(d), 111(m), 112(a)(i)

This Article has been written by Shri Ravi Shekhar Jha, Advocate Delhi High Court based on his interpretation of the law. He can be reached at his email id intelconsul@gmail.com or on his Mobile +91-9999005379.

Source: CESTAT Ahmedabad

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