Lubricating oil exemption requires goods to be directly usable for lubrication, not merely a processed input needing blending.

Imported Bright Stock was held not to qualify as "lubricating oil" for exemption under the customs notification because the expression "ordinarily used for lubrication" requires the goods themselves to be capable of such use. A product that is only a raw material or intermediate, and that needs further blending or compounding before it can be used for lubrication, does not satisfy the notification. On that reasoning, the exemption was denied and the classification claim was rejected in favour of Revenue.

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Issues: Whether imported Bright Stock was classifiable as "Lubricating Oil" for the purpose of exemption under the relevant customs notifications.

Analysis: The notifications granted partial exemption from auxiliary duty of customs to specified goods, including lubricating oil falling under Chapter 27 of the First Schedule to the Customs Tariff Act, 1975. The explanation to Notification No. 88/1988-Cus. defined lubricating oil as oil ordinarily used for lubrication, excluding hydrocarbon oil with flash point below 93.3 degree Centigrade. The imported goods required blending or compounding with other ingredients before they could be ordinarily used for lubrication. Goods that are only a raw material or an intermediate requiring further processing do not satisfy the requirement of being ordinarily used for lubrication.

Conclusion: The imported goods were not lubricating oil within the meaning of the notification and the exemption was not available. The issue was decided against the assessee and in favour of Revenue.

Ratio Decidendi: For exemption under a notification using the expression "ordinarily used for lubrication", an imported product must itself be capable of ordinary use for lubrication and not merely be a material requiring further blending or compounding before such use.

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