2015 (2) TMI 297

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..... dered for classification of ‘lubricating oil’ is flash point. In this case, according to the report of Customs House Laboratory, the flash point of the imported product is above 94° C. Once the flash point is above 94° C, the product cannot be classified under heading ‘lubricating oil’ at all, since the flash point has to be below 93.3° C. This vital aspect has not been considered by both the lower authorities. When the tariff heading and the description is based only on the flash point, the reliance on other aspects to reclassify the item, in our opinion, may not be proper at all. On this ground alone, it is seen that the reclassification cannot be justified. Once reclassification cannot be justified unless it is shown that the product is .....

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..... ty with interest amounting to ₹ 30,21,340/-. The appeal filed by the party against this order was rejected. 3. We find that the Commissioner (A) has simply observed that the report from the CRCL leaves no room for doubt. He also observed that the percentage of ash content in the imported oil base bears out the conclusion of the adjudicating authority. He has upheld the reclassification as well as redetermination of value. 3.1 Since the Commissioner (A) has mostly relied upon the CRCL report and the Order-in-Original, we have considered the observations in the Order-in-Original also. Paragraph 14 of the OIO is relevant and is reproduced below. 14. Regarding point No. 1 mentioned above, I find that as per the Chapter Notes (h) .....

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..... under heading lubricating oil at all, since the flash point has to be below 93.3 C. This vital aspect has not been considered by both the lower authorities. When the tariff heading and the description is based only on the flash point, the reliance on other aspects to reclassify the item, in our opinion, may not be proper at all. On this ground alone, it is seen that the reclassification cannot be justified. Once reclassification cannot be justified unless it is shown that the product is not base oil, the Revenue cannot make out a case against the appellant. In view of the above, we do not find any justification to uphold the impugned order and accordingly at this stage itself the appeal is allowed with consequential relief, if any to the .....

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