AI Drafter 
TaxTMI 
TaxTMI 
1993 (5) TMI 101
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....of Customs (Appeals), Bombay. The former order is in the case of respondents, M/s. Century Enka Ltd. and the latter order is in the case of respondents, M/s. Haryana Petro Chemicals (Appeal C/No. 2633/90-C). The stay application for staying the operation of the impugned order has become infructuous since the appeals stand posted for hearing on merits and the stay application is, therefore, rejected as such. The common issue involved in these appeals is whether the goods imported by the respondents in all these cases, which is described as `Spin Finish Oil' will be eligible for exemption under Notification 136/86 on being classified under Heading 34.03 of Customs T....
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....ation 51/86 was held to be not applicable. In the case of respondents, M/s. Haryana Petro Chemicals, the Assistant Collector of Customs, in his order, held that Notification 51/86 covers only lubricating preparations and the goods imported had classified under Heading 34.03 as preparations for treatment of textile materials which is not covered by the Notification 51/86. He also held that the two categories are different as the notification applied only to lubricating preparations. Appeals were filed against these orders before the Collector (Appeals) and the Collector (Appeals) considered in detail authoritative technical literature, considered the composition of the spin finish oil and observed that it consisted of lubricants and anti-sta....
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.... 3(b) of the Rules for the Interpretation of the Tariff which lays down that the goods be classified by their material which used the essential character. The Collector followed a similar reasoning in his order in respect of respondents, M/s. Haryana Petro Chemicals and held that the spin finish oil imported by them is also eligible for exemption under Notification 136/86. The Collector of Customs, Bombay is in appeal against these orders of the Collector (Appeals). 2. Shri L.N. Murthy, ld. JDR appearing for the appellant Collector contended that the technical literature on UCON Textile Fibre Lubricants by the respondents would show that the product in the case of respondents, M/s. Century Enka Ltd. called Sinparol En is only a lub....
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....) E.L.T. 369 and in the case of Navsari Oil Products Ltd. v. Assistant Collector of Central Excise, reported in 1992 (60) E.L.T. 550 (Guj.). 3. The ld. Counsel for the respondents, Shri Lakshmikumaran, contended that the department admits classification of the goods under Heading 34.03 and it cannot be accepted that the goods would be eligible for classification under Heading 34.03 and at the same time, not eligible for the exemption under Notification 136/86. It was also urged that the spin finish oil is not a component of lubricating preparations and the ld. Counsel in this regard referred to the Test Report on `Spin Finish Oil' UCON 50 HB-260 dated 17-5-1988 given by the Chemical Examiner wherein the Chemical Examiner has opined that ....
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....ited and relied upon the decision of the Tribunal in the case of JK Synthetics v. Collector of Customs - 1992 (62) E.L.T. 41 wherein the Tribunal held that staple fibre plant silicone spray Toshiba TGS-6007 imported in that case being on test by the Chemical Examiner found to be mould release preparation would be correctly assessable under Heading 34.03 and will also be eligible for Notification 136/86. It was, further, argued that Heading 34.03 would cover all sorts of lubricating machines irrespective of whether they are used in textile or fur skin, etc. The ld. Counsel referred to the literature produced by the respondents to say that there may be oil preparation for textiles which have no lubricating function, wax emulsions. There is no....
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.... the yarn such that smooth high speed transfer over various metallic guides .... can take place with a minimum of fibre breakage." 6. Again in the Chapter Spinning Man-made Fibres by C.B. Champan, Senior Research Scientist, ICI Fibres Ltd., it has been stated that "Before winding up the filaments, spinning finish is applied by contacting them with the surface of a rotating wet roller, or by a capillary feed device.... Spinning finish is a complex preparation of oil lubricants emulsified in water; wetting agents, antistatic agents, and adhesives may be added also. Its purpose is to provide yarn lubrication for subsequent processing over guides and rollers, and to disperse static electrical charges during processing which would otherwise c....