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of <h1>Tribunal grants exemption to blended lubricating oils by Bharat Petroleum</h1> The Tribunal held that the lubricating oils, including 'Cabols', 'univols', 'Ecols', and 'Osmex-140', blended from duty-paid mineral oils by M/s. Bharat ... Oil - Lubricating oils - the benefit of Notification No. 120/84-C.E. will be available Issues Involved:- Whether the benefit of exemption under Notification No. 120/84-Central Excise is available to specific lubricating oils.Detailed Analysis:Issue 1: Benefit of Exemption under Notification No. 120/84-Central ExciseThe appeal filed by M/s. Bharat Petroleum Corporation Ltd. raised the question of whether certain lubricating oils, namely 'Cabols', 'univols', 'Ecols', and 'Osmex-140', are eligible for the benefit of exemption under Notification No. 120/84-Central Excise, dated 11-9-84.Appellant's Argument:The Appellant contended that the impugned products, obtained by straight blending of mineral oils, fall under sub-heading 2710.60 of the Tariff Act and are eligible for exemption under the Notification. They argued that the products are ordinarily sold and used as lubricants, satisfying the conditions of the Notification. Reference was made to legal precedents and a Board's Circular to support the interpretation that the products are covered by the Notification due to being obtained by blending duty-paid mineral oils.Respondent's Argument:The Respondent argued that the impugned products do not qualify as lubricating oils under sub-heading 2710.60 and were assessed under sub-heading 2710.99. They claimed that the products were not ordinarily used as lubricating oils, citing lower sales tax rates when sold for other purposes. The Respondent contended that there was no evidence to show that the products met the conditions specified in the Notification.Judgment:The Tribunal analyzed the Notification's wording, which exempts blended or compounded lubricating oils obtained by blending duty-paid mineral oils. It noted that the Appellants' products were manufactured by blending such oils and that the Revenue did not dispute this process. The Tribunal found that the products satisfied the specifications of blended or compounded lubricating oils under the Notification. It clarified that sub-heading 2710.60 covers specific lubricating oils, while others fall under sub-heading 2710.99. As the Notification did not specify a particular sub-heading, all lubricating oils meeting its conditions were eligible for exemption. Since the Appellants complied with the Notification's requirements, the benefit was deemed available to them, and the appeal was allowed.This detailed analysis addresses the issue of whether the lubricating oils in question are eligible for exemption under Notification No. 120/84-Central Excise, providing a comprehensive overview of the arguments presented by both parties and the Tribunal's reasoning leading to the judgment.
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