Exemption for compounded lubricating oils applies despite residuary classification where the notification is not tied to a specific tariff entry.

An exemption notification for blended or compounded lubricating oils was held to apply on its own terms and not to be confined to a particular tariff sub-heading. The lubricating oil sub-heading was treated as restrictive, while the residuary heading could cover other lubricating oils; classification under the residuary entry therefore did not defeat exemption where the notification itself did not tie relief to that specific entry. The notification also remained operative under section 5A(4) until amended, varied, rescinded or superseded. The Supreme Court accordingly accepted that the product qualified for exemption and rejected the contrary view taken by the Tribunal.

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Issues: Whether the exemption notification for blended or compounded lubricating oils applies to lubricating oils generally, even when the goods are classified under the residuary tariff heading and not under the specific lubricating oil sub-heading.

Analysis: The notification exempted blended or compounded lubricating oils without linking the benefit to any particular tariff entry. The tariff sub-heading for lubricating oil used the expression "that is to say" and also contained an exclusion for hydrocarbon oil having flash point below 94 C, indicating that the specific sub-heading was restrictive and that other lubricating oils could fall within the residuary heading. The continuation of the notification under section 5A(4) meant that it remained operative until amended, varied, rescinded or superseded. Since the notification itself did not tie exemption to the specific sub-heading, classification under the residuary entry did not defeat the exemption.

Conclusion: The exemption applied to the product, the contrary view of the Tribunal was unsustainable, and the appeal succeeded in favour of the assessee.

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