GASTRADE INTERNATIONAL vs. COMMISSIONER OF CUSTOMS, KANDLA

C.A. No.-004475-004475 - 2025Supreme Court2025 INSC 41128 March 2025Bench: HON'BLE THE CHIEF JUSTICE76 pages
For Petitioner: RAJESH KUMAR GAUTAM
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What did the Supreme Court hold?

The Supreme Court held that the evidence was inconclusive to definitively classify the imported goods as HSD. Given the time elapsed and the inconclusive test reports, the Court decided to give the benefit of doubt to the appellants.

What were the facts?

Appellants imported goods declared as 'Base Oil SN 50', but Customs Authorities classified them as High Speed Diesel (HSD), a prohibited item for private entities. Multiple laboratory tests yielded conflicting or inconclusive results regarding the product's classification.

What were the issues?

The primary issue was the correct classification of the imported goods as either Base Oil or High Speed Diesel, and the consequential implications for import restrictions and penalties.

Which sections of the Income-tax Act were involved?

Section 111(m),Section 112(a),Section 112(b),Section 114AA

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Cases cited in this judgment(3)Show list

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Cause title — parties, addresses and appearances
2025 INSC 411 Page 1 of 76 REPORTABLE IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION CIVIL APPEAL NO. OF 2025 (@ SPECIAL LEAVE PETITION (CIVIL) NO. 6470 OF 2022) GASTRADE INTERNATIONAL ...APPELLANT (S) VERSUS COMMISSIONER OF CUSTOMS, KANDLA …RESPONDENT(S) With CIVIL APPEAL NO. OF 2025 (@ SPECIAL LEAVE PETITION (CIVIL) NO. 6472 OF 2022) CIVIL APPEAL NO. OF 2025 (@ SPECIAL LEAVE PETITION (CIVIL) NO. OF 2025) (@ Diary No. 32623 OF 2024)

J U D G M E N T

NONGMEIKAPAM KOTISWAR SINGH, J. Delay condoned in Special Leave Petition arising out of Diary No.32623 of 2024. Leave granted in all the Special Leave Petitions.

2.

The issue involved in this batch of appeals is, whether, the imported goods is to be treated as Base Oil as claimed by the appellants or High Speed Diesel (H ) as determined by the Customs Authorities, which is contested by the appellants. If the product is treated as H , it would be a prohibited item that

The order continues below.

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