2002 (10) TMI 591 - AT - Central Excise

Summary

Issues Involved:
- Whether the benefit of exemption Notification No. 120/84-Central Excise is available to specific lubricating oils.

Detailed Analysis:
1. Issue of Exemption Eligibility:
- The appeal questioned if lubricating oils like 'Cabols', 'univols', 'Ecols', and 'Osmex-140' are eligible for exemption under Notification No. 120/84-Central Excise.
- The Appellant contended that the products are classified under sub-heading 2710.99 and qualify for exemption as they are obtained by blending duty paid mineral oils.
- Reference was made to previous Tribunal orders and legal interpretations emphasizing the ordinary use and classification criteria for lubricating oils.

2. Interpretation of Notification and Classification:
- The Revenue argued that the impugned products were not ordinarily used as lubricating oils, citing Sales Tax rates and classification under sub-heading 2710.99.
- The Notification specifies conditions for exemption for blended lubricating oils obtained from duty paid mineral oils.
- The Tribunal analyzed the wording of the Notification and the classification of lubricating oils under sub-headings 2710.60 and 2710.99 to determine eligibility for exemption.

3. Notification Compliance and Decision:
- The Tribunal examined the process of blending duty paid mineral oils to produce the impugned products and found the Appellant's claim of exemption eligibility valid.
- It was observed that the impugned products fell under the category of blended or compounded lubricating oils, meeting the specifications of the Notification.
- The Tribunal highlighted that the Notification did not specify a particular Tariff Heading, indicating that all lubricating oils meeting the conditions were eligible for exemption.
- As the Appellants complied with the Notification requirements and used duty paid mineral oils for blending, they were deemed eligible for the exemption benefit, leading to the allowance of the appeal.

In conclusion, the judgment analyzed the eligibility of specific lubricating oils for exemption under Notification No. 120/84-Central Excise based on the process of blending duty paid mineral oils and the classification criteria under relevant sub-headings. The decision favored the Appellants, recognizing their compliance with the Notification's conditions and the absence of evidence to refute their claim, ultimately allowing the appeal.