CUSTOMS, EXCISE AND SERVICE TAX APPELLATE TRIBUNAL CHANDIGARH REGIONAL BENCH - COURT NO. I Customs Appeal No. 60825 of 2017 [Arising out of Order-in-Original No. 09/YDB/Commr/LDH/CUST/M/2016 dated

11.04.2016 passed by the Commissioner of customs, ICD, Ludhiana]

M/s S K Petroleum ……Appellant A-20, Milap Nagar, Uttam Nagar, New Delhi VERSUS Commissioner of Customs, ……Respondent Central Excise House, F-Block, Rishi Nagar, Ludhiana, Punjab-141001 WITH

2. Customs Appeal No. 60828 of 2017 (Jeevan Jain)

[Arising out of Order-in-Original No. 09/YDB/Commr/LDH/CUST/M/2016 dated

11.04.2016 passed by the Commissioner of customs, ICD, Ludhiana]

3. Customs Appeal No. 61054 of 2019 (CC vs. Om Udyog)

[Arising out of Order-in-Appeal No. LUD-EXCUS-001-APP-2614-15-2019-20 dated 03.07.2019 passed by the Commissioner (Appeals), Central Goods and Service Tax and Customs, Ludhiana]

4. Customs Appeal No. 61055 of 2019 (CC vs. Om Udyog)

[Arising out of Order-in-Appeal No. LUD-EXCUS-001-APP-2614-15-2019-20 dated 03.07.2019 passed by the Commissioner (Appeals), Central Goods and Service Tax and Customs, Ludhiana]

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APPEARANCE:

Shri Saurabh Kapoor, Ms. Muskaan Gupta, Ms. Tanya Kumar and Ms.

Muskan Chauhan, Advocates for the Appellant/Assessee Shri Anurag Kumar, Authorized Representative for the Respondent/Revenue CORAM: HON’BLE MR. S. S. GARG, MEMBER (JUDICIAL) HON’BLE MR. P. ANJANI KUMAR, MEMBER (TECHNICAL)

FINAL ORDER NO. 60219-60222/2026 DATE OF HEARING: 13.02.2026 DATE OF DECISION: 09.03 .2026 P. ANJANI KUMAR :

M/s S.K. Petrochem (Appeal No. C/60825/2017); Shri Jeevan Jain (Appeal No. C/60828/2017) assail Order-in-Original dated 11.04.2016 passed by Commissioner of Customs, Ludhiana. Revenue assails the order in appeal, dated 03.07.2019, passed by Commissioner (Appeals), who allowed the appeals, filed by M/s Om Udyog, dropping the proceedings imitated against them i.e. M/s Om Udyog. Revenue appeals are No. 61054/2019 & 61055/2019.

2. Brief facts of the cases are that M/s S.K. Petrochem imported consignments of “Pressed Distillate Oil” from M/s Om Udyog, on high seas basis and filed four Bills of Entry Nos. 8323294 dated 26.10.2012, 9074605, 9074611 and 9074608 dated 19.012013 for clearance of the same, declaring classification of goods under CTH 27101990; as there was an alert department has drawn samples and sent them for testing to CRCL New Delhi, who vide Test Memo, in respect of BE No. 8323294 dated 26.10.2012, reported that the sample had characteristics of base oil; the goods imported were seized under Section 110 of the Customs Act, 1962 and were ordered to be released provisionally subject to the conditions as fixed; statement of Shri Jeevan Jain, Proprietor and various other persons were recorded; Shri Jeevan Jain retracted his statement later; on conclusion of investigation, a Show Cause Notice, dated 29.01.2014, was issued proposing to reject the declared classification of goods i.e.

“Pressed Distillate Oil” and to re classify the same as “Lubricating Oil” as well as “Base Oil” and proposing to impose penalties and fines. The Show Cause Notice was adjudicated confirming the proposals as below.

Shri Jeevan Jain, Proprietor, M/s S.K. Petrochem filed appeal No.

C/60828/2017 against imposition of penalty of Rs 57,37,637, under Section 114 A of the Customs Act, 1962.

2.1. The Brief facts of the case, in the Revenue appeals, are that M/s Om Udyog imported consignments of “Pressed Distillate Oil” and filed two Bills of Entry, No. 9987781 dated 29.04.2013 and 9658861dated 23.03.2023, for clearance of the same, declaring classification of goods under CTH 27101990; on the basis of report by CRCL who opined that the samples had characteristics of „Base Oil‟, Revenue seized the consignments and issued Show Cause Notices seeking to confiscate the impugned goods; to re-determine the value; recover duty on the basis of such value and to impose penalties. The original authority confirmed the proposals of the Show Cause Notices and the Commissioner (Appeals) set aside the s