The Delhi High Court has issued notices to the Shipping Corporation of India (SCI) and the Container Corporation of India (Concor) asking them whether demurrage and shipping charges could be waived for a particular consignment of used furnace oil. This followed a suit filed by Om Petro Chemicals against the commissioner of customs.
In September 1999, Om Petro imported 468 metric tonne of fuel oil from Vancy Scrap Trading, Sharjah, traders and exporters of metal scrap and used oil. The initial test report of the imported oil showed that the sample contained impurities which were indicative of the nature of used oil. As such, the oil was not allowed to enter the country.
Om Petro requested that a retest be conducted. The second test was conducted under the parameters laid down in September 1997 by the ministry of environment and forests. This time the oil was okayed.
In March 2000, the customs, before clearing the consignment, wrote to the Central Revenue Control Laboratory asking why the two tests had different results. In May 2000 the laboratory wrote back saying that some of the tests laid down by the September 1997 circular were untestable.
On March 9, 2001, a meeting of the environment ministry, representatives of various laboratories and the customs was held. In the meeting it was agreed that the earlier parameters had problems and fresh parameters were laid down.
Under the fresh parameters, the imported fuel oil was found to be hazardous and so customs counsel Jayant Bhushan told a Division Bench of the Delhi High Court comprising Chief Justice Arijit Passayat and Justice DK Jain that the only option now was to re-export the oil.
There is a Supreme Court order of February 6, 1998, to this effect which says,
