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2|Page C/11591-11593/2016-DB
Laboratory, Kandla. Further samples were drawn on 16.12.2014 and
sent for test to Customs Laboratory, Kandla. As per the test report, the
samples were found to consist of active matter namely, Linear Alkyl
Benzene Sulphonic Acid (LABSA) Sodium Salt and other ingredients such
as Sodium Chloride, Calcium, Magnesium, Iron, etc. The content of
LABSA sodium salt varied from 0.13% to 1.08% by weight. The content
of Sodium Chloride varied from 89% to 95% by weight. The DRI
contended that since the major constituent in the goods was Sodium
Chloride and since the active matter "LABSA" was only in the range of
0.13% to 1.08%, the goods cannot be considered as "Linear Alkyl
Benzene Sulphonic Acid Sodium Salt (Industrial Surfactant)" and that
accordingly, the description of the goods given in the shipping bills as
"Linear Alkyl Benzene Sulphonic Acid Sodium Salt (Industrial
Surfactant)", amounted to mis-declaration and consequently the goods
were liable for confiscation under Section 113 (i) of the Customs Act,
1962. A SCN dated 03.06.2015 was issued wherein apart from the
charge of goods liable to confiscation for mis-declaration of the
description of goods, it was also contended that the value which was
declared in the shipping bills for "Linear Alkyl Benzene Sulphonic Acid
Sodium Salt (Industrial Surfactant)" cannot be accepted since the goods
were not "Linear Alkyl Benzene Sulphonic Acid Sodium Salt (Industrial
Surfactant)". It was contended that since the major constituent of the
good was Sodium Chloride, the goods should be considered as Sodium
chloride or common salt and accordingly, the notice sought to adopt the
value of contemporary exports of salt. It was further contended in the
SCN that the appellant had filed shipping bills in respect of Advance
Authorization and as per the Standard Input-Output Norms; the export
goods should contain 72% of active matter. The SCN, however, did not