2004 (9) TMI 544 - AT - Central Excise

Appeal granted for exemption denial on lubricating oils under Notification 120/84-C.E.

The Tribunal allowed the appeal by way of remand, setting aside the order that denied exemption under Notification 120/84-C.E. for lubricating oils and ... Oil - Lubricating oils and greases - Eligibility to Notification No. 120/84-C.E. Issues:Classification of lubricating oils and greases under Notification 120/84-C.E.Issue Analysis:1. Classification of goods under Notification 120/84-C.E.:The appeal was filed against the order denying exemption under Notification 120/84-C.E. for lubricating oils and greases classified under sub-heading 3403.00. The appellant argued that the Collector (Appeals) introduced a new reason not mentioned in the show cause notice, which exceeded his jurisdiction. The appellant contended that the conditions of the Notification were met for goods under SH-3403.00 and that the authorities wrongly imposed new restrictions. The appellant cited various decisions supporting the position that Central Excise authorities cannot impose new conditions not specified in the Notification. The appellant also referenced a decision by the Larger Bench of CEGAT in favor of the appellant's position.2. Interpretation of Notification and definition of goods:The respondent argued that the goods in question were not greases and lubricating oils but lubricating preparations containing surface active agents. The respondent supported the lower authorities' decision and reiterated the Collector (Appeals)'s reasoning. After hearing both sides, the Tribunal referred to a decision by the Larger Bench regarding the applicability of Notification 120/84-C.E. The Tribunal highlighted that the Notification defined blended or compounded lubricating oils and greases specifically. It emphasized that the eligibility for exemption under the Notification depended on whether the goods satisfied the defined criteria and were ordinarily used as lubricants. The Tribunal concluded that a decision on eligibility required evidence from both sides and remanded the matter to the adjudicating authority for further consideration.3. Tribunal's Decision:The Tribunal allowed the appeal by way of remand, setting aside the impugned order. The matter was sent back to the adjudicating authority to reach a decision on the eligibility of the goods for exemption under Notification 120/84-C.E. based on the evidence presented by both parties.In conclusion, the Tribunal's decision focused on the interpretation of the Notification's criteria for exemption and the definition of the goods in question as lubricating oils and greases. The case highlighted the importance of adhering to the specified conditions in the Notification and the need for evidentiary support to determine eligibility for exemption.