In Brief
Three Indian companies (Gastrade International, Rajkamal Industrial, and Divinity Impex) imported oil from UAE declaring it as Base Oil SN 50. Customs authorities seized and reclassified it as High-Speed Diesel (HSD)—a prohibited item for private import. Laboratory tests across three premier facilities examined only 14 of 21 required parameters and showed high flash-point readings inconsistent with HSD. The Supreme Court held that classification must apply the 'most akin' test from tariff rules, not mere 'preponderance of probability'. Inconclusive expert opinions lacking categorical certainty cannot justify confiscation. The Court allowed appeals, directing authorities to ensure complete testing facilities for all essential parameters within six months to avoid future litigation.
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