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TMI Blog2014 (7) TMI 567X X X X Extracts X X X X X X X X Extracts X X X X ..... ervo Steerol C-6" are used as lubricating preparations. Consequently, the Appellant are eligible to the benefit of concessional rate of duty i.e. 10% for the clearances of the said products during the relevant period as prescribed under Notification No.12/94-CE dated 01.03.1994 and amended by Notification No.14/95-CE dated 16.03.1995. - Decided in favour of assessee. - Ex.Ap.348/2006 - FO/A/75341/2014 - Dated:- 6-1-2014 - Dr D M Misra And I P Lal, JJ. For the Appellant : Dr Samir Chakraborty , Adv . For the Respondent : Shri S P Pal, Appraiser (AR) PER : D M Misra This is an appeal filed by the appellant against order-in-appeal number 05/KOL-VI/2006 dated 23.03.2006 passed by the Commissioner of Central Excise (Appeal). 2. Briefly stated the facts of the case are that the appellant are engaged in the the manufacture of lubricating preparations falling under chapter heading numbers 3403 of Central Excise tariff act 1985. The appellant, inter alia, manufactured, the lubricating preparation namely in Servo Steerol C-6 which was classified by them under the chapter sub-heading 3403.00 of CETA ,1985 . The composition of the said product are (a) highly refined ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that there is no dispute relating to classification of the goods under Chapter sub-heading 3403.00 and also it is not the allegation of the department that the goods are covered under category (ii) products. Explaining the functions/use of the said goods as mentioned in the product literature he submits that it is used as cooling and friction reducing product during cold rolling and mild and medium carbon steels. In other words, the disputed goods in question are having lubricating functions and all types of lubricating preparations (not merely oils) are covered by sub-heading 3403.00 and all preparations having lubricating function, primary or secondary is covered by the said sub-heading. In support he has referred to the Explanatory Note A of Chapter Heading 34.03 of HSN and also the judgement of this Tribunal in the case of CCE vs. Crop Care Pvt.Ltd . - 2008 (226) ELT 705 . 4. It is his submission that meaning ' speciality oil' used in the Notification No.287/86-CE dated 05.05.1986 which was rescinded in the year 1994, in interpreting the present Notification is bad in law as the said Notification has no legal existence after 1994 and the meaning of the word/expressi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tres around the eligibility of exemption Notification No.12/94-CE dated 01.03.1994 as amended by subsequent Notification No.14/95-CE dated 16.03.1995. It is the claim of the Appellant that the product manufactured by them was lubricating preparations and accordingly eligible to concessional rate of duty i.e. 10% ad valorem against the applicable tariff rate of 20% ad valorem as per the said Notification No.12/94-CE as amended by Notification No.14/95-CE . The Revenue's allegation is that the product Servo Steerol C 6 is a speciality oil and cannot be called as lubricating preparations. 6. We find from the record that a show cause notice was issued to the Appellant on the basis of an objection from CERA audit which after being dropped by the CERA, consequently, the Assistant Commissioner has also adjudicated the demand notice in favour of the Appellant. But on an Appeal filed by the Revenue, the Ld.Commissioner ( Appeals) has decided the case against the Appellant-Assessee. In arriving at the conclusion that the Servo Steerol C 6 as a ' speciality oil' and not a lubricating preparation so as to be eligible to the benefit of exemption Notification No.12/94-CE as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Sub-Heading 2810.99 or 3403.00 of the Schedule to the Central Excise Tariff Act providing therein, in the explanation, the meaning of speciality oil; it was mentioned that speciality oil means any preparation made by blending or compounding of mineral oils falling under Chapter 27 of the schedule to the Central Excise Tariff Act, 1985 with other oils or any other substance and is intended for industrial uses other than for use as lubricant and of which the lubrication function if any, is only secondary in nature. We fail to understand as to how the meaning of speciality oil referred to in the said Notification for the purpose of allowing total exemption from duty would be relevant in interpreting the eligibility of present Notification in allowing concessional rate of duty to 'lubricating preparations' when the said exemption Notification had been withdrawn from 1994 by the Govt., obviously, considering the same as no more relevant/necessary. On the contrary the meaning of 'lubricating preparation' can be culled out from HSN which reads as under:- (A) Lubricating preparations designed to reduce friction between the moving parts of machinery, vehicles, aircraft or ..... X X X X Extracts X X X X X X X X Extracts X X X X
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