2006 (3) TMI 404

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....r textile materials is (a) classifiable under 3403.10 or under 3403.90 as classified by the Deptt. and (b) whether it is eligible for exemption as contemplated under Notification No. 12/94-C.E., dated 1-3-94 as amended by Notification No. 14/95-C.E., dated 16-3-95 and as claimed by the appellants. 3. Sr. No. 5 of the said Notification reads as follows :- "3403.00 Lubricating preparations 10% ad valorem" Chapter Heading No. 34.03 reads as follows :- "Lubricating preparations (including cutting-oil preparations, bolt or nut release preparations, anti-rust or anti-corrosion preparations and mould release preparations, based on lubricants) and preparations of a kind used for the oil or grease treatment of textile materials, leather, fu....

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.....90. He draws our attention to the HSN explanatory notes in respect of 3403 (G), which reads : '(G) Preparations for the lubricating, oiling or greasing of textiles, leather, hides, furskins' etc. These may be used to lubricate or soften textile fibres during spinning to "stuff" leather, etc. They include, for example; mixtures of mineral oil or fatty substances with surface active agents (e.g. sulphoricinoleates); water dispersible textile lubricating preparations containing a high proportion of surface active agents together with mineral oils and other chemicals.' 8. A perusal of the above explanatory notes indicates that while carving out the sub-heading 3403.10 in the Tariff, the explanatory notes relating to 3403(A) 2(F) have be....

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....hemical Examiner has opined that the textile softener manufactured by the Appellants is lubricating preparations. In fact a reading of the Chemical Examiner's report goes to show that the textile softener in question is a preparation of a kind used for the oil or grease treatment of textile materials, leather, furskins or other material which is a second product covered by Heading No. 34.03. This is also apparent from the Explanatory Note of HSN wherein it has been mentioned that "the preparations for lubricating, oiling or greasing of textiles, leather, hides or furskins, etc. These may be used to lubricate or soften textile fibres during spinning to "stuff" leather, etc. They may include, for example, mixtures of mineral oil or fatty subs....