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TMI Blog1999 (9) TMI 239X X X X Extracts X X X X X X X X Extracts X X X X ..... -in-Appeal Nos. 486 to 498/94, dated 11-10-1994 passed by the Collector (Appeals). C/231/93-C filed by Collector of Customs (Preventive), Ahmedabad against the Order-in-Original Nos. 3/Addl. Collr./92, dated 20-1-1992 passed by the Additional Collector. 2. Briefly stated the facts are that M/s. Continental Petroleum Ltd. imported waste oil which was classified by them under Heading 28.23 of C.T.A. The Assistant Collector classified the product under sub-heading 3403.19 of C.T.A. and Confirmed the demand for Customs Duty, holding that the impugned product was primarily a product containing petroleum oil or oils obtained from Bituminous material and their product has the basic characteristics of a lubricating oil; that according to test r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le of waste oil contains petroleum oils or oil obtained from Bitumenous minerals; that impugned product is not a prepared mixture; that on the contrary the product is a waste or residue which remains at the base of machinery/plant which is collected as such and further refined/recycled to get a product which is ultimately used in the manufacture of lubricating oils after adding certain additives; that the product is not suitable to be directly used as lubricating oil as per the Chemical Examiner s report; that the product is not manufactured product or obtained as a residual product from any of the industries in India. 4. Arguing on behalf of the Revenue, the ld. D.R. submitted that since the use of waste oil on filtration is for lubricat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. He also mentioned that as per Explanatory Notes of H.S.N. Headings 34.03 includes lubricating preparations designed to reduce friction and the impugned products do have such characteristics. Finally the ld. D.R. submitted that the value of the imported goods was Rs. 16.49 lakhs and the penalty imposed is Rs. 25,000/- which is very less considering the fact that they had imported the material with the knowledge that it was lubricating oil. 5. Shri V. Lakshmikumaran, ld. Advocate, appearing on behalf of the importers, submitted that the presence of water, dirt, and Carbionaceous matter by themselves implies that they imported waste oil cannot be equated with lubricating preparations known to the industrial users in the market or used as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d or new rags, scrap twine, cordage, rope and cables and worn out articles of twine, cordage, rope or cables of textile materials . He submitted that there is no heading in tariff for waste lubricating oils; that accordingly the imported product is no more lubricating preparations and as such it will fall under heading 38.23, being residuary product. 6. The ld. Counsel also submitted that the imported product is incapable of lubricating any thing; that Rule 2(a) of the Interpretative Rules is not applicable in the present matter as it can be invoked only when there is no specific heading in the tariff for semi-finished goods; that if the semi-finished goods is classifiable under a specific heading, Rule 2(a) is not applicable. He relied u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er had the belief that they were protected vide para 5 of Import Export Policy. 8. We have considered the submissions of both the sides. Heading 34.03 of the Customs Tariff Act reads as under : 34.03 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, furskins or other materials, but excluding preparations containing, as basic constituents, 70 per cent or more by weight of petroleum oils or of oils obtained from bituminous minerals - Containing petroleum oils or oils obtained from bituminous ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unal in the case of Gujarat Oil Industries v. C.C., 1994 (69) E.L.T. 490 (T) and the Tribunal going by the Test Report which showed that mineral oil content was in excess of 70% by weight and its flash point was 94 C classified the waste oil under sub-heading 2710.60 of Central Excise Tariff treating imported goods as lubricating oils. This decision of the Tribunal was followed in the case of Paramount Petrochemicals v. C.C. 1994 (71) E.L.T. 1041 (T). The Tribunal in both the cases has decided the matter on the basis of contents of mineral oil and flash point of the imported wasted oils. In the present case also it has not been disputed by the Importers that the weight of the mineral oils is less than 70% by weight and its flash point is a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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