TaxTMI 
TaxTMI 
2014 (7) TMI 567
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.... Excise tariff act 1985. The appellant, inter alia, manufactured, the lubricating preparation namely in "Servo Steerol C-6" which was classified by them under the chapter sub-heading 3403.00 of CETA ,1985 . The composition of the said product are (a) highly refined based stocks (HVI Oil) 42.63% (b) Additive 57.37%. The applicable tariff rate at the relevant time was 20%, whereas, by an exemption notification number 12/94 CE dated 01.03.1994 as amended by notification number 14/95 CE dated 16.03.1995, the concessional rate of duty on the 'lubricating preparations' was 10%. The applicant had file necessary classification declaration mentioning the classification of the said product under Chapter Sub-Heading 3403.00 and also claimed be....
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....rations (including cutting oil preparations, ................. , based on lubricants) and (ii) preparation of a kind used for the oil or grease treatment of textiles materials. It is his submission that the exemption Notification allows benefit to 'lubricating preparations' covered under category ( i ) products and not extended to goods covered under category (ii), thereof. Further he has submitted that there is no dispute relating to classification of the goods under Chapter sub-heading 3403.00 and also it is not the allegation of the department that the goods are covered under category (ii) products. Explaining the functions/use of the said goods as mentioned in the product literature he submits that it is used as cooling and fric....
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....rther the Ld.Advocate submitted that the decision of this Tribunal in Reliance Rasayan Pvt.Ltd . vs. CCE - 2006 (200) ELT 251 (T) is not applicable to the facts of the present case as the Tribunal in the said case had dealt with the category (ii) products of the tariff sub-heading 3403.00 and it is not concerned in any manner to 'lubricating preparations' as mentioned in the first part of the said tariff heading. He has submitted that the impugned order is bad in law and accordingly not sustainable. 5. Per contra, the Ld.A.R . for the Revenue reiterated the findings of the ld.Commissioner (Appeals) and submitted that the product manufactured by the Appellant are rolling mill oil and being included in the list of speciality oil in C....
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....t the product "Servo Steerol C 6" is a speciality oil and cannot be called as lubricating preparations. 6. We find from the record that a show cause notice was issued to the Appellant on the basis of an objection from CERA audit which after being dropped by the CERA, consequently, the Assistant Commissioner has also adjudicated the demand notice in favour of the Appellant. But on an Appeal filed by the Revenue, the Ld.Commissioner ( Appeals) has decided the case against the Appellant-Assessee. In arriving at the conclusion that the "Servo Steerol C 6" as a ' speciality oil' and not a lubricating preparation so as to be eligible to the benefit of exemption Notification No.12/94-CE as amended by Notification No.14/95 , the Ld.Commiss....
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....g very high emulsion stability and has excellent cooling and friction reducing properties. Its emulsion gives longer roll life, reduced power consumption and stain free surface finish. Due to its higher emulsion stability, specific oil consumption is much lower compared to other rolling oils. Due to its proper composition with natural fats, emulsion shows excellent "Plate out" characteristic to ensure roll and strip cooling. It's proper co-efficient of friction gives correct roll bite, less strip breakage and longer roll life. It is extensively in use in 4 stand tandem mill, CRM including in thin gauge sheets." 7. The finding of the Ld.Commissioner (Appeals) against the Appellant mainly rests on the meaning of speciality oil referred t....
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....graphite, molybdenum disulphide, tale, carbon blacks, calcium or other metallic soaps, pitch, or rust, oxidation, etc., inhibitors). However, the heading also includes synthetic lubricating preparations based on, for example, dioctyl or dinonyl sebacates , phosphoric esters, polychlorobiphenyls, poly (oxyethylene), (polyenthylene glycol) or poly (oxypropylene) (polypropylene glycol). These synthetic lubricants, which include "greases" based on silicones or jet lube oils (or synthetic ester lubes), are designed to operate under specially exacting conditions (e.g., fire-resistant lubricants, lubricants for precision instrument bearings or jet engines. 8. Applying the aforesaid meaning, to the use of "Servo Steerol C-6", we have little doubt ....