9911796707
TMI Blog2017 (9) TMI 76X X X X Extracts X X X X X X X X Extracts X X X X ..... ehouse and are registered as First Stage/Second Stage dealer for central excise purpose. The appellants are engaged in three types of trading activities viz. (a) Purchase of LLP/HLP in bulk traders and selling out the same directly as in transit sale; (b) Purchase of LLP/HLP in bulk tankers, unloading/transferring the same to the tanks in their warehouse and thereafter, selling in bulk tankers and (c) Purchase of LLP/HLP in bulk tankers, unloading/transferring the same in their tankers; thereafter feeling into barrels/drums in 210/220 ltrs. And selling the same. The drum contained the appellant's name and a logo. 2. The dispute in the present case relates to the liability of the appellant/assessee to pay central excise duty on categor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... parations. (c) Reference is made to Explanatory Notes of HSN for Heading 2710 CBEC Circular dated 4.5.1998, the scope of products, as mentioned in Indian Pharmacopeia, purchase excise invoice, to indicate the nature of use and various case laws to support that LLP/HLP are different from paraffin wax and not to be considered as lubricating preparations. (d) The appellant/assessee is not undertaking any labeling or re-labeling of containers. Out of two types of activities to consider the process as deemed manufacture, as per Note 4 of Chapter 27, admittedly, the appellant/assessee is not involved in "re-packing from bulk pack to retail pack". On the second activities regarding "labeling or relabelling of containers", it is submitted that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing of containers or re-packing from bulk packs to retail packs or the adoption of any other treatment to render the product marketable to the consumer, shall amount to "manufacture". The Original Authority categorically held that LLP/HLP cannot be called as lubricating oils. However, he held that these products can be called as lubricating preparations attracting the provisions of Note-4. We note in para-36 of the impugned order, the Original Authority recorded his findings. It is clear that the Original Authority mis-directed himself while examining the nature of these products and fell in error by considering the use of paraffin wax to decide the nature of LLP/HLP. It is apparent that LLP/HLP cannot be considered as paraffin wax. Liquid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n careful consideration of the materials placed before us, we are of the opinion that LLP/HLP cannot be considered as either lubricating oils or lubricating preparations. These products are for specific use mainly in cosmetics, foods and pharmaceutical industries. These are different from lubricating preparations, which are blended products containing more than 70% of the petroleum oils and other additives, to impart specific properties to reduce friction. 9. In view of the above discussions and analysis, we find no merit in the impugned order regarding the findings of the application of Note 4 of Chapter 27 to the impugned goods. Accordingly, the impugned order is set aside and the appeals by the appellant/assessee are allowed. As the dem ..... X X X X Extracts X X X X X X X X Extracts X X X X
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