1996 (1) TMI 276 - AT - Central Excise

Summary

Issues:
Classification of oils under Tariff Item 2710.29 or Item 2710.99.

Analysis:
The appeal involved the classification of certain oils, namely Avomax, Avotex, Rolling Oil-55, under Tariff Item 2710.29 or Item 2710.99. The Assistant Collector classified these oils as mineral oil under 2710.29 due to their specific characteristics, including a smoke point of more than 18 mm and a final boiling point not exceeding 300oC. The Revenue argued that the end-use marketability is not relevant, and the common or commercial parlance test should determine the classification of goods. The Respondents, on the other hand, relied on a previous Tribunal case and contended that the oils should be classified under 2710.29 based on the specifications mentioned in the Tariff Heading, regardless of end-use. They highlighted that the products met the required specifications of a hydrocarbon oil with a smoke point of more than 18 mm and a final boiling point not exceeding 300oC, as confirmed by chemical tests.

The Tribunal considered the characteristics of the oils in question, which included a flash point above 25oC, a smoke point exceeding 18 mm, and a final boiling point not exceeding 300oC. These oils also satisfied the definition of petroleum oils under Chapter 27. The relevant Tariff Item 27.10 specified the criteria for classification, emphasizing the smoke point and final boiling point for oils like kerosene and aviation turbine fuel. Since the products met these specifications and were classified as petroleum oils, the end-use of the oils was deemed irrelevant in this case. Therefore, the Tribunal upheld the classification of the oils under Tariff Item 2710.29 and dismissed the Revenue's appeal.