2026-VIL-367-GUJ-CU
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CUSTOMS High Court Cases

Customs - Classification of imported industrial oil, Release of restricted commodity - Petitioners, importers of industrial oil, challenged the action of DRI in seizing the goods under Section 110 of the Customs Act. The DRI contended that the actual product imported by the petitioners is Automotive Diesel Fuel (ADF) / High-Speed Diesel (HFHSD), which is a restricted commodity classifiable under CTH 2710 1944 and conforming to IS 1460 and IS 16861. The test reports indicated that the sample is adulterated with lighter hydrocarbons and is most akin to HFHSD or adulterated HFHSD - Whether the action of the DRI in seizing the goods is justified based on the test reports – HELD - The test reports clearly indicate that the imported goods are most akin to HFHSD or adulterated HFHSD, which is a restricted commodity. The Supreme Court in Gastrade International v. Commissioner of Customs, emphasized the application of the "most akin test" for classification of goods. The test reports provide a definitive opinion that the imported goods are "most akin" to HFHSD, which is different from the inconclusive reports in the Gastrade International case - The flash point, which is a critical parameter, has been lowered by adulteration with lighter hydrocarbons, as per the test reports. The fact that the samples were tested in two different laboratories does not invalidate the test reports, as long as they cover the 21 parameters prescribed by the Supreme Court - The action of the DRI in seizing the goods is justified, as the imported goods are found to be a restricted commodity, i.e., ADF/HFHSD, and not the industrial oil as declared by the petitioners. In view of the settled legal position that prohibited or restricted goods cannot be ordered to be released, the seized goods cannot be released - The action of the DRI in seizing the goods is upheld and writ petitions are dismissed
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