Consumer goods classification for imported lubricants turned on industrial use, and heavy-machinery oil was not treated as unauthorised import.

Lubricating oil imported in larger packing sizes for use in heavy machinery was treated as industrial input rather than consumer goods under Para 7(12) of the Exim Policy 1992-97, because the test turned on whether the goods were directly consumable by an ordinary consumer or intended for industrial use. The Tribunal distinguished precedent involving small-pack motor vehicle lubricants and upheld the finding that such heavy-machinery lubricants were not consumer goods, so confiscation as unauthorised import was not warranted. A further argument based on serial No. 55 of Appendix XXXV was not entertained because it had not been raised at the lower stages.

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Issues: Whether lubricating oil imported in larger packing sizes for use in heavy machinery was consumer goods under Para 7(12) of the Exim Policy 1992-97, and therefore liable to confiscation as unauthorised import.

Analysis: The classification depended on whether the goods were directly consumable by an ordinary consumer or were meant for industrial use. The Tribunal distinguished the cited precedent on the basis that lubricating oil used in motor vehicles packed in small quantities stood on a different footing from lubricants intended for heavy machinery and imported in substantially larger volumes. On that footing, the finding that the goods were not consumer goods was upheld. The additional contention based on serial No. 55 of Appendix XXXV was not entertained because it had not formed part of the proceedings at the lower stages.

Conclusion: The lubricants were not consumer goods under the import policy, and the Revenue's challenge failed.

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