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 MTOβwhether 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 (βOthersβ β freely importable)
- Customs Reclassification: CTH 2710 12 90 (βLight oils and preparationsβ β restricted)
- Penalty and Fine Imposed: βΉ15 lakh (fine), βΉ7.5 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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