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TMI Blog2001 (8) TMI 251X X X X Extracts X X X X X X X X Extracts X X X X ..... tions. While holding so, the learned Commissioner (Appeals) relied upon the judgment of the Tribunal in the case of CCE v. Century Enka Limited reported in 1994 (71) E.L.T 782 (Tribunal), that of the Hon'ble Supreme Court in the case of CCE, Bombay v. Parle Exports Ltd. reported in 1988 (38) E.L.T. 741 (S.C.) and also in the case of Bombay Chemicals Pvt. Ltd. v. CCE, Bombay reported in 1995 (77) E.L.T. 3 (S.C.). The CEGAT in the case of CCE, v. Century Enka Ltd. (supra) had taken a view that "spin finished oil" which is a preparation of a kind used for oil and grease treatment of textile machine is a lubricating preparation and entitled to exemption. The Supreme Court in the case of Bombay Chemicals Pvt. Ltd. v. CCE reported in 1995 (77) E. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case. I find that some confusion has arisen on account of the tariff entry under chapter heading 34.03 distinguishing lubricating preparations (including cutting oil preparations, bolt or nut release preparations, and mould release preparations based on lubricants) on the one hand, and preparation of a kind used in oil or grease treatment of textile materials, leather, foreskins or other materials. Since the exemption notification is worded so as to cover only lubricating preparations, a controversy has arisen as to whether preparations of a kind used for oil or grease treatment of leather would come within the scope of lubricating preparations even if they happen to lubricate leather. According to the Chemistry of fat liquoring emulsions w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the description 'preparation of a kind used in leather' since they are used to lubricate leather, they are lubricating preparations. In this connection, the observation of the Supreme Court in the case of Bombay Chemical Pvt. Ltd v. Collector of Central Excise, Bombay reported in 1995 (77) E.L.T 3 (S.C.) is relevant : "One of the settled principles of construction of an exemption notification is that it should be construed strictly, but once a goods is found to satisfy the test by which it falls in the exemption notification it cannot be excluded from by construing such notification narrowly. Serial No. 18 of exemption Notification No. 55/75 mentions broad categories of goods which are entitled to exemption. Once a goods is found to fall ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CEGAT decision relied upon by the Assistant Collector also supports this view. In view of the above observation, the Assistant Collector's order cannot be held as either improper or illegal and therfore the application to review the above order is rejected. 2. The Revenue is aggrieved with the order of the learned Commissioner (Appeals) and contends that Chapter heading 34.03 of HSN makes a clear distinction between the "lubricating preparation" and "preparation of a kind". Thus the goods covered in this chapter heading clearly falls only in either of these categories and not both and the lubricating preparations mentioned in Heading 3403 is clearly for metallic applications as explained in HSN, which has persuasive value and only these ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .e. the lubricating preparation had answered to the description falling under Heading 34.03 and it is lubricating preparation and the item is not obtained from petrol or oil or bituminous minerals and it is eligible for the benefit of Notification in question. It is his contention that the classification is not disputed by the Revenue and so also with regard to the fact that it does not contain any petroleum oils or oils obtained from bituminous minerals is proved beyond doubt by the report given by the Chief Chemist, Central Revenue Central Laboratory, New Delhi vide letter CX 14 EX 193, dated 25-2-94. He submits that the impugned product is lubricating preparation only. It is his contention that HSN explanatory note does not have applicab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stry. We are not in these appeals concerned with the question of classification of the item falling under chapter 34 or its exclusion. For the purpose of grant of exemption of a Notification, the plea with regard to applicability of HSN explanatory note cannot be considered. The reason being that the terms of a Notification is comprehensive and there is no scope for any intentment or drawing a different inference than the words used in the Notification. The Notification has to be strictly construed. The words therein are that it exempts lubricating preparations, not containing petroleum, oils or of oils obtained from bituminous minerals and falling under Heading 34.03 of the Schedule to the Central Excise Tariff Act, 1985, which heading is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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