TaxTMI 
TaxTMI 
1997 (7) TMI 398
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...., the learned lower authority has held the goods to be falling under Tariff Heading 34.03. The appellants had taken a plea before the learned lower authority that the same could not be considered as goods as the product has a very limited shell life of 10 days and that it was manufactured for captive use. They also took a plea that the longer period of limitation could not be invoked inasmuch as the appellants had in the classification list filed, declared their product as liquified wax. The learned lower authority has held the goods to be marketable and, therefore, excisable and has determined the classification of the same as under 34.03 as a lubricating agent and he has also held that there was suppression of facts on the part of the appellants. 2. The learned Senior Advocate for the appellants Shri Sivam, has pleaded that the appellants manufactured the goods by dispersing the wax in water along with a few other ingredients and the product degraded within a period of 10 days and the same could not, therefore, be brought to market for being sold. He has pleaded that no doubt the appellant had moved the product from one factory to the other for use in the other unit of th....
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.... He pointed out that the items covered thereunder have to be such lubricating preparations as are used in the production process to facilitate the manufacturing process of other goods or they should be having lubricating property themselves and used as such for their lubricating action. He has pleaded that the appellant's product was applied as the last process in the manufacture of the sewing thread and by application of this alusil, the product thread is imported the property by which the thread could move smoothly without generating any heat in the grooves in the sewing machine to facilitate proper sewing. He has pleaded that scope of Tariff Heading 38.09 is wide enough to cover finishing agents of this nature. In regard to the invokation of longer period of limitation, he has pleaded that the appellant in good faith had described their goods as liquefied wax instead of by their name by which they were describing it in their factory. He has pleaded that this simplified description was given to make the authorities aware as to the nature of the product that they were manufacturing as the word alusil would not have indicated anything specific about the nature of th....
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....en produced that the appellants had made such a declaration in the earlier period also. 5. In regard to the classification of the goods, the learned JDR has pointed out that the appellants in their instructions manual to the staff, as to the use of the product have mentioned the same as a lubricating preparation. Having described it so, the appellants now cannot contend that the product is not a lubricating preparation falling under 38.03. He has pleaded that the product is used to impart the thread a property of lubrication and therefore, the product should be treated as such as a lubricating preparation. He has referred in this connection to HSN Notes under Tariff Heading 34.03. Note (B) according to which he says that lubrication preparations used in wire drawing to ensure that the wire rod slides easily through the dies. He has pleaded, like-wise the use in this case is also similar. He has also referred to Note (G) under 34.03. Note (B) and (G) for convenience of reference is reproduced below : (B) Lubricating preparations used in wire-drawing to ensure that the wire rod slides easily through the dies. These include: certain aqueous emulsions of tallow and sulp....
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....e lubrication preparations which are for wire-drawing are used is set out. The learned JDR for the department has referred to the lubricating preparations falling under Note (B) in support of his plea that the goods would fall under 34.03. We observe these lubricating preparations as clearly set out in the HSN are such which are used in the wire-drawing process to facilitate the movement of the wire through the dyes during the process of wire-drawing. The lubrication does not impart the wire with any specific characteristics but only provides the lubricating medium for the movement of the wire through the dyes. Thereafter (C), these are cutting-oil preparations. These are again used in a manufacturing process. Under (D), there are bolt or nut release preparations. These are for releasing bolts and nuts again for preparing a film for the purpose. Likewise we have anti-rust and anti-corrosion preparations which facilitate in a manufacturing process, movement of the goods and prevention of rust etc. Under (G) we have got preparations for the lubricating, oiling or greasing of textiles. It is seen, the preparations which are covered thereunder are such of those which are either used to....