1993 (5) TMI 101 - AT - Customs

Tribunal affirms goods as lubricating preparations eligible for exemption under specific notifications.

COLLECTOR OF CUSTOMS, BOMBAY Versus CENTURY ENKA LTD.

The Tribunal upheld the Collector (Appeals) findings that the goods were classified under Heading 34.03 as lubricating preparations, eligible for ... Spin Finish Oil is a lubricating preparation Issues: Classification of goods under Heading 34.03 for exemption under Notification 136/86 and 51/86.Detailed Analysis:1. Background: The appeal was filed by the Collector of Customs, Bombay against orders passed by the Collector of Customs (Appeals) related to the classification of goods imported by two companies under Heading 34.03 and the eligibility for exemption under Notifications 136/86 and 51/86.2. Appellants' Argument: The Collector contended that the goods imported were not lubricating preparations but fell under another category. They argued that the exemption under Notification 51/86 only applied to lubricating preparations and not to preparations for the treatment of textile materials.3. Respondents' Argument: The respondents argued that the goods were lubricating preparations eligible for exemption under the notifications. They referred to expert opinions and test reports supporting their claim that the goods were synthetic lubricating preparations.4. Collector (Appeals) Findings: The Collector (Appeals) considered technical literature, expert opinions, and test reports to conclude that the goods were lubricating preparations. They noted that the spin finish oil primarily consisted of lubricants and had the essential character of a lubricating preparation.5. Legal Interpretation: The Tribunal analyzed the nature of spin finish oil as explained in various sources, confirming that it is a lubricating preparation used in textile processing to reduce friction and provide surface lubricity to yarns. The Chemical Examiner's report supported this conclusion.6. Decision: The Tribunal upheld the Collector (Appeals) findings that the goods were lubricating preparations eligible for exemption under Notifications 136/86 and 51/86. They emphasized that once the goods were classified as lubricating preparations, their use for treatment of textile material did not affect their eligibility for exemption.7. Conclusion: The appeals filed by the Collector were rejected, and the Tribunal affirmed the classification of the goods under Heading 34.03 as lubricating preparations, making them eligible for the relevant exemptions. The decision was based on expert opinions, test reports, and the essential character of the goods as lubricants.