TaxTMI 
TaxTMI 
1998 (5) TMI 135
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....filed a memorandum of cross objection. We have, therefore, perused the records and heard learned DR. 3. Learned DR stated that Chapter 27 covers mineral fuels mineral oils etc. and Chapter 38 applies to miscellaneous chemical products. The classification preferred by the department was under Chapter S.H. No. 2710.99 as mineral oils whereas the assessees preferred Chapter S.H. No. 3811.00. The product is marketed in the name and style of an oil saver of engine. Later on at the appellate stage, this has also been argued that its functions is to improve the viscosity. Viscosity improves and anti-knock preparations are covered by Chapter S.H. No. 3811.00 but then these should be essentially chemical products as Chapter 38 covers chemica....
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....ot appear to be correct in terms of explanatory notes to HSN (page 533), because the sub-heading 3811.00 covers the preparations which are additives for mineral oils or for other liquids used for the same purpose to eliminate or reduce undesirable properties or to impart or enhance desirable properties. 5. He further submitted that such preparations intended to be added in small quantities to motor fuels or lubricants are excluded from sub-heading 3811.00. In terms of explanation given under Notification No. 287/86, dated 5-5-1986 as amended, the speciality oil is a preparation of mineral oil with other oil or other substances intended for industrial use (other than for use as lubricants) and of which the lubrication function if any....
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....of fuel to premature ignition and as a viscosity improver. It is used to keep carburetor and inflow and outflow of the cylinder, clean as it provides detergency and dispersancy to oil and is having property to prohibit oxidation. Because of above said properties, the product is used as an additive to Motor Oil and is also known as `an additive to motor oil' in the trade as well as by people using it. The appellant has accepted that viscosity improvers and anti-knock preparations are covered by sub-heading 3811.00. However, the appellant has refused to accept respondent's product under sub-heading 3811.00 for the reason that Chapter 38 covers chemical products and since the product is oil preparation, its classification under Chapter 38 was ....
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....gorically stated as to which products could be covered under Chapter 27. The reference to content of 70% or more by weight of petroleum product, is made in the description of products under Heading No. 27.10, However, that has to be taken as the description or explanation or a definition for the product to be included in that heading. Further, it has been specifically explained at Page 219 of HSN that prepared additives to mineral oils are not included in Heading 27.10 but they are classifiable under Heading No. 38.11. 8. We have considered the above submissions. We observe that once the Collector (Appeals) had decided the classification of the product under S.H.No. 3811.00, it was open to the department to have challenged that orde....