9911796707
TMI Blog1989 (2) TMI 289X X X X Extracts X X X X X X X X Extracts X X X X ..... refore, these appeals are also being disposed of by a single order. 2. The case of the appellants is that they imported goods which are described as liquid paraffin . These have been assessed under Heading 2710.00-CTA read with Notification No. 115/86-Cus., dated 17-2-1986 and under Heading 2710.99-CET. There is no dispute about the tariff classification on the Customs side. However, it is claimed by the assessee that the goods are covered by Item 27.10(VII) of Notification No. 115/86 attracting Customs duty @ 40% and not by Item 27.10(X) of the Notification, which attracts Customs duty @ 70%. The lower authorities, on the other hand, have held that the goods, being specifically mentioned at 27.10(X) of the Table to Notification No. 11 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ications, by Witco Chemical, Kirk Othmer s Chemical Encyclopaedia, White Mineral Oil Petroleum and their Related Products, by Erich Meyer, would show that the goods are nothing but lubricating oil, actually used for lubrication. White Oil is stated to be synonymous to liquid paraffin of pharmacopeal grade and is claimed to be used for textile lubrication. White Mineral Oil USP, reportedly the same as liquid paraffin, is claimed to be used for lubrication in canning, capping and sealing machines. Meat packing houses are said to utilize liquid paraffin USP as a lubricant for the over-head trolley, which carries the meat from one location of the plant to other locations for processing. It is added that Kirk Othmer s Encyclopaedia shows tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7/General/86 dated 14-8-1986 of Bombay Collectorate relied upon by the appellants and submits that this is not supportable and it would not bind the Tribunal while taking a view in the matter. 7. We have carefully considered the facts of the case and the submissions made before us. There is no dispute here as regards the classification under the Customs Tariff, which has been made under Heading 2710.00. This heading reads as under : Petroleum oils and oils obtained from bituminous minerals, other than crude; preparations not elsewhere specified or included, containing by weight 70% or more of petroleum oils or of oils obtained from bituminous minerals, the oils being the basic constituents of the preparations , The dispute is only as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... department of investigate as to what is the end use of such liquid paraffins. The Notification should not be given an interpretation which renders its different provisions redundant or meaning-less unless it can be shown that such redundancy is inherent as a result of some drafting or conceptual mistake. It is not argued before us that there is any such mistake. 10. Lubricating Oils are used to provide a film between the moving parts of machines and engines to prevent wear with little or no loss of power. Lubricating oil manufacture requires crude to be processed strictly with lubricating oil as the objective. Such lubricating oils are not mere by-products of gasoline and other petroleum fractions. For this reason, many refiners consider ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... treatment or hydrogenation, unsaturates and aromatics from the feed-stock from which the oils are made. The extent to which this objective is accomplished is generally measured by two tests, i.e. Readily Carbonizable Substances and UV Absorbance. It is only when properly refined that white mineral oils become free of odour and taste, which is a necessary property for lubricants that come in contact with food. 13. As rightly stated on behalf of the department, it was essential for appellants to produce literature from the manufacturer of the impugned products to show that the goods are in fact lubricating oil grade. On this point, it is stated before us that appellants had placed before the lower authorities, extracts from various techni ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nforms the trade that liquid paraffin IP would be medicament which would attract classification under sub-heading No. 3003.20 provided these are un-mixed products suitable for such use as medicaments and also provided that such medicaments are other than Patent or Proprietary medicaments. Shri Sunder Rajan, the learned representative from the department submits that the Trade Notice does not bind the Tribunal, but there is no answer to the point that there is a clear understanding in the Trade Notice given to the trade as regards the correct classification of the goods. What is more, no fault is found with the reasons given in the Trade Notice for holding that liquid paraffin IP would attract classification as medicament under Heading 3003. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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