TaxTMI 
TaxTMI 
2001 (10) TMI 535
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....lants manufactured various grades of lubricating oils including products known as "Cabols", "Univols", "Ecols" and "Osmex-140". 1.2 As required by Rule 173B of the Central Excise Rules, 1944 (for brevity 'Rules'), the appellants had filed from time to time Classification lists as shown below, which covered the above four products :- (i) 18/R-2/B/HSH-2710.99 Blended & Compounded Lubricating Oil./BPCL/86, dated 23-6-1986 effective from 28-2-1986, claiming exemption from duty in terms of Notification No. 120/84, dated 11-5-1984. (ii) 19/R-2/B/HSH-2710.99 Blended & Compounded Lubricating Oil/BPCL/86, dated 23-6-1986 effective from 1-3-1986 claiming exemption from duty in terms ....
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....Cabols, Univols, Ecols and Osmex-140 as "Blended and Compounded Lubricating Oils". (b) That the appellants had wilfully availed of benefit of exemption Notification No. 120/84, dated 11-5-1984 for payment of duty at nil rate. (c) That on the basis of the information with the Department, the impugned products were suitable as the basic raw materials for manufacture of lubricating oils and greases. (d) That the products were sold to manufactures at a concessional rate of Sales Tax @ 2% as against 11% Sales Tax charged to dealers/users of products was issued. It was proposed in this show cause notice to disallow the benefit of exemption under Notification No....
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.... (d) That these products are manufactured with two base oils without additives and such products are sold at a concessional rate of sales tax @ 2% applicable to manufacture. (e) When the subject products were classified under residuary entry 2710.99, they cannot be regarded as lubricating oils nor can exemption from duty be admissible because it was applicable to products falling under sub-heading 2710.60. On the basis of aforesaid findings and inferences the Commissioner concluded that the appellants had mis-declared the said products as "Lubricating Oils & Greases" and as such the provisions of Section 11A, proviso thereto, were attracted. In that view of the matter, the ld. Responde....
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.... we do not find any definition of "lubricating oil" in Chapter Note of CETA, 1985. The tariff description 2710.60 reads as "lubricating oil that is to say, any oil as is ordinarily used for lubrication, excluding any hydrocarbon oil which has its flash point below 94 degree centigrade". The plain reading of this tariff description would indicate to us that all oils which are ordinarilly used for lubrication, with a flash point equal to or above 94 degree centigrade should be classified under this tariff heading. The word 'ordinarily' appearing in this entry cannot be ignored for the purposes of classification. It cannot be understood to mean "universally" or "without exception" as is being proposed by the Revenue in this c....
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....ss in granting the benefit of Notification 120/84 as claimed by the appellants for the product under dispute. This to our mind indicates that the Department also interpreted the coverage of the Notification 120/84 not related or limited to products classified under 2710.60 as has been made out. We, therefore, find no reason to deny the benefit of the notification. (d) We do not, therefore, find, after the perusal of the facts and the impugned order any ingredients of the provisio clause of Section 11A(1) to be satisfied to permit the invocation of the longer period of demand. We have considered the submissions of the ld. Sr. Advocate for the Revenue, that the sales to M/s. Balmer Lawrie who were using the product ....