Functional character of lubricating preparations controls OGL importability under policy entries, not tariff classification alone.

An imported lubricating preparation described as Quakerol/Qwerl, purchased on high seas sale basis, was assessed against the Import Export Policy, 1990-93 to determine whether it fell within OGL under Appendix 5B1(11) or 5B1(20). Test results showed less than 70% petroleum oil and supported classification as a lubricating preparation under Tariff Heading 34. The policy entry covered lubricating oils and greases of synthetic and mineral origin, and the accompanying policy material supported importability of lubricating oil and greases under Appendix 5B. On that basis, the product was treated as covered under OGL and confiscation was held unsustainable.

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Issues: Whether the imported product, described as Quakerol and Qwerl and purchased on high seas sale basis, was covered under Open General Licence under Appendix 5B1(11) or 5B1(20) of the Import Export Policy, 1990-93.

Analysis: The product was found in the test report to contain less than 70% petroleum oil and to fall under Tariff Heading 34 as a lubricating preparation. The material on record also showed that the sample could be used for lubricating purposes. The policy entry covered lubricating oils and greases of synthetic and mineral origin under OGL, and the Government publication on Import Licensing Policy supported the view that lubricating oil and greases classifiable under Customs Heading 3403.11 were importable under Appendix 5B.

Conclusion: The product was covered under OGL, and the confiscation was not sustainable. The appeal was allowed with consequential relief.

Ratio Decidendi: Where the import policy covers lubricating oils and greases under OGL, the importability of a lubricating preparation is determined by its functional character and policy entry, not merely by its Customs Tariff classification.

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