CESTAT : Condemns Revenue's poor adjudication knowledge, quashes goods confiscation basis

CESTAT allows assessee’s appeal, sets aside order of Commissioner (Appeals) levying penalty & redemption fine relying upon report of laboratory not qualified to test as per DGFT Policy Circular No. 33 (RE-08)/2004-09; Based on report of SGS India Pvt. Ltd. to the effect that percentage of Indian Basmati Rice in the export sample was NIL, goods were confiscated, however, said order was reversed by Commissioner (Appeals) in first round of litigation on ground that SGS India was not a competent laboratory to test as per DGFT Policy Circular; Notes that, under a direction to conduct re-test of random samples through Agmark laboratory, report of Regional Agmark Laboratory stated that samples due to infestation by insects were not for any analysis, and subsequently Revenue accepted report of SGS India citing absence of contradictory evidence; Criticising Revenue’s approach of again relying upon test report of laboratory already held as not qualified, states that, Revenue did not understand the process of adjudication nor has knowledge of judicial discipline; Remarks, it is more pitiable that senior officer of rank of Commissioner working as Commissioner (Appeals) did not object to such an action, accordingly holds that said order "does not survive in law" : Allahabad CESTAT