9911796707
TMI Blog2001 (10) TMI 535X X X X Extracts X X X X X X X X Extracts X X X X ..... icating oils including products known as Cabols , Univols , Ecols and Osmex-140 . 1.2 As required by Rule 173B of the Central Excise Rules, 1944 (for brevity Rules ), the appellants had filed from time to time Classification lists as shown below, which covered the above four products :- (i) 18/R-2/B/HSH-2710.99 Blended Compounded Lubricating Oil./BPCL/86, dated 23-6-1986 effective from 28-2-1986, claiming exemption from duty in terms of Notification No. 120/84, dated 11-5-1984. (ii) 19/R-2/B/HSH-2710.99 Blended Compounded Lubricating Oil/BPCL/86, dated 23-6-1986 effective from 1-3-1986 claiming exemption from duty in terms of Notification No. 120/84, dated 11-5-1984. (iii) 20/R-2/B/HSH-2710.99 Blended Compoun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation No. 120/84, dated 11-5-1984 for payment of duty at nil rate. (c) That on the basis of the information with the Department, the impugned products were suitable as the basic raw materials for manufacture of lubricating oils and greases. (d) That the products were sold to manufactures at a concessional rate of Sales Tax @ 2% as against 11% Sales Tax charged to dealers/users of products was issued. It was proposed in this show cause notice to disallow the benefit of exemption under Notification No. 120/84, dated 11-5-1984 and to raise duty demand on the clearances made during 1991 to 1993, which was quantified at Rs. 3.92 crores and to impose penalty under Rule 173Q of the said Rules. 3. Disregarding all the oral and writte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... exemption from duty be admissible because it was applicable to products falling under sub-heading 2710.60. On the basis of aforesaid findings and inferences the Commissioner concluded that the appellants had mis-declared the said products as Lubricating Oils Greases and as such the provisions of Section 11A, proviso thereto, were attracted. In that view of the matter, the ld. Respondent held that the entire clearances of these products made during January, 1991 to September, 1993, were chargeable to duty. The duty demanded as proposed in the SCN was confirmed and penalty of Rs. 40 lakhs was imposed for the alleged violation of Central Excise Rules. 5. Being aggrieved by the impugned order, the appellants have come up before this Tr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed for lubrication, with a flash point equal to or above 94 degree centigrade should be classified under this tariff heading. The word ordinarily appearing in this entry cannot be ignored for the purposes of classification. It cannot be understood to mean universally or without exception as is being proposed by the Revenue in this case. We would consider the interpretation of this word to be satisfied, if the goods under question were capable for being used for lubrication and if some quantities have been used for further blending of lubricants, that would itself not be a reason to shift the case their classification from this heading; so long as the flash point conditions are met. No evidence has been brought by the Revenue that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and the impugned order any ingredients of the provisio clause of Section 11A(1) to be satisfied to permit the invocation of the longer period of demand. We have considered the submissions of the ld. Sr. Advocate for the Revenue, that the sales to M/s. Balmer Lawrie who were using the product in preparation of blending and compounded lubricants was not disclosed to the department and therefore there were grounds existing to invoke longer period. The ld. Sr. Advocate, for the Revenue fairly admitted that the grant of the benefit of Notification 120/84 by the proper officer on after changing the classification in classification list No. 31/89, was a mistake . He further submitted that this mistake by the proper officer should not be a bar to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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