TaxTMI 
TaxTMI 
1998 (6) TMI 163
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....us chemicals products. The classification preferred by the department was under sub-heading No. 2710.99 as Mineral Oils (residuary item) whereas the assessee preferred under 3811.00. The product is marketed in the name and style of an oil saver of engine. Later on, at appellate stage, this has also been argued that its function is to improve the viscosity. Viscosity improves and anti-knock preparations are covered by Chapter Heading 3811.00 but then these should be essentially chemical products of a type which Chapter 38 covers whereas this item, at the best, can be called an oil preparation. Hence it should fall under Chapter 27. It is also reported by chemical examiner, after testing the said product at C. Ex. Laboratory, that the oil con....
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....ondents had in their letter dated 16-2-1990 stated that they had re-examined product `oil saver and engines' and according to them, it is correctly classifiable as `anti-knock preparation' falling under sub-heading No. 3811.00. They had further stated that it can be considered as `speciality oil' sub-heading No. 2710.99 under Notification 287/86, dated 5-5-1986. It was however, Deptt's contention that since the product in question viz. `oil saver of engine' is not just an additive but a mixture of additives in mineral oil, the oil content of which is more than 70% by weight, it is correctly classifiable under Tariff Heading No. 2710.99 and not under sub-heading No. 3811.00 as claimed by the party. Further, these preparations are included to....
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....e' is correctly classifiable under sub-heading No. 2710.99 @ BED 20% Adv. plus Rs. 250 per tonne. The A.C. approved the classification lists No. 216/88, dated 1-3-1988, No. 217/88, dated 4-4-1988, No. 160/89, dated 1-4-1989 and 297/89, dated 18-5-1989 classifying the product oil saver of engine under sub-heading 2710.99. 5. Learned Counsel contended that the said product possessed, inter alia, the following properties : (a) It increases the viscosity, compression and overall performance and prolongs engine life. (b) It improves viscosity index of the oil, and (c) It reduces oil consumption and exhaustive smoking. The impugned product was specifically covered by sub-heading 3811.00 being `viscosity improver....
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....er sub-heading 3811.00. The A.C., however, may consider whether the appellants are entitled to have the benefit of exemption under Notification No. 175/86, dated 1-3-1986 and accordingly to extend the benefit to the respondents. 6. We have considered the above submissions. We observe that the rival entries 2710.99 and 38.11 during the relevant period read as follows :- "27.10. Petroleum oils and oils obtained from bituminous materials, other than crude; preparations not elsewhere specified or included, containing by weight 70% or more of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations. 2710.99. - Other." 38.11. 3811.00. Anti-knock preparations, ox....
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....rable properties, or to impart or enhance desirable properties". 9. Learned Counsel has filed before us pamphlets advertising the product and indicating its qualities and uses. These have been referred to by the learned Counsel in her submissions and therefore, we need not repeat them here and we consider that in view of the nature of this entry 38.11 and the description of anti-knock preparations therein, obviously it is the functional aspect or use which gains importance once the basic composition is such that the product is in the nature of a prepared additive for mineral oils and is used for the purpose of eliminating undesirable properties and to impart desirable properties thus, e.g., increase in resistance of fuels to prematu....