Flash point governs Chapter 27 classification, so goods meeting the stated threshold could not be reclassified as lubricating oil.

Tariff classification under Chapter 27 turned on the supplementary note making flash point the governing criterion for lubricating oil. The imported goods were reported to have a flash point above 94 C, and the lower authorities' attempt to reclassify them as lubricating oil by relying on other considerations was found inconsistent with that note. Because the specific tariff condition controlled classification, the reclassification and consequential demand could not be sustained. The assessee's claimed classification as base oil was accepted and consequential relief followed.

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Issues: Whether the imported product could be reclassified as lubricating oil on the basis of the laboratory reports and the flash point criterion under Chapter 27, or whether it remained classifiable as base oil.

Analysis: The classification dispute turned on the supplementary note in Chapter 27, which treats an oil as lubricating oil only where the flash point criterion is satisfied. The imported goods were reported to have a flash point above 94 C, and the lower authorities had proceeded on an incorrect understanding of the note by treating the higher flash point as supporting classification as lubricating oil. Since the tariff description for lubricating oil is controlled by the flash point condition, reliance on other factors to sustain reclassification was held to be improper. On that basis, the reclassification and consequential demand could not be upheld.

Conclusion: The reclassification as lubricating oil was rejected and the classification claimed by the assessee was accepted.

Final Conclusion: The appeal succeeded and the assessee obtained consequential relief.

Ratio Decidendi: Where tariff classification is governed by a specific note making flash point the criterion, goods satisfying the stated flash point threshold cannot be reclassified by relying on other considerations inconsistent with that note.

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