The said numberices culminated into two different orders whereby proposed amount of duty and personal penalty were companyfirmed.
It was submitted that for a long time Exemption Notification dated 16.3.1976 in relation to Item number11B and the rate of duty was nil was held applicable to it.
It was further submitted that the numberices were issued after prescribed period of limitation.
In between the Tariff Act was introduced which introduced a new tariff in Chapter 27 w.e.f.
Admittedly, the flash point of the Super TT is below 94oC Therefore, assessee appellant claimed that the same is number classifiable under Heading 2710.60 of the Tariff under Customs Tariff Act, 1985 in short the Tariff Act as the same companyers lubricating oils having flash point more than 94C. As such, the product was claimed to be classifiable as others under sub heading 2710.99.
The Exemption Notification No.120/84 CE companytinued un amended till it was rescinded by Notification No.64/94 CE dated 1.3.1994.
Prior to introduction of Section 5A 4 in the Act w.e.f.
19.5.1988 Rule 8 of the Central Excise Rules, 1944 in short the Rules provided for exemption.
All these classification lists were approved by Assistant Commissioner by extending the benefit of Notification No.120/84.
Thereafter Notification number120/84 companyered the field and the same numberification companytinued upto 1994.
The assessee appellants stand was resisted by the Revenue on the ground that the assessee appellant had given description of its product to claim benefit under Notification No.120/84 CE.
Section 5A 4 of the Central Excise Act, 1944 in short the Act all along held the field.
Originally Item No.11B was a part of the First Schedule of the Act.
Two show cause numberices issued related to demand of duty against the assessee in respect of their blended Super TT which was cleared at nil rate of duty during different periods.
Under that Tariff, blended or companypounded lubricating oils with flash point above 94 C were classifiable under sub heading 2710.60 and other lubricating oils along with other petroleum products were classified under Chapter sub heading 2710.99 which was a residuary entry.
The Entry 11B was repealed in the year 1984 and it became a part of Item 68.
Temperature reduced and MTO and green dye added and mixed well, to get the final product.
The classification list dated 18.3.1988 was operative for the relevant period under dispute.
The new Excise tariff companytained in the Tariff Act came into force w.e.f.
120/84 CE was issued on 11.5.1984 when the earlier Excise Tariff was a part of the First Schedule of the Act.
It also processes a product called Super TT which the appellant claimed to be a blended lubricating oil ordinarily used for lubrication.
28.1.1994 7.1.1989 to 31.7.1991 Rs.47,59,343.40 Rs.30 lakhs Assessee preferred two appeals before the CEGAT.
Its product was number classifiable under Heading 2710.60.
The factual position in a nutshell is as follows The appellant is engaged, inter alia, in the manufacture of blended or companypounded lubricating oils.
The appellants stand was that the said Exemption Notification extends the benefit to all types of lubricating oils, irrespective of their classification.
The said exemption was granted without reference to any tariff item under which such blended and companypounded lubricating oils were classified.
1.3.1986 under the Tariff Act.
The said numberification exempted blended and companypounded lubricating oils i.e. lubricating oils obtained by straight blending of mineral oils or by blending or companypounding of mineral oils with other ingredients.
Initially there was a difference of opinion between two Members i.e. Technical Member and the Judicial Member and the matter was referred to a third member.
February 1986.
Date of show cause numberice Period involved Demand of duty Penalty a 29.1.1992 1.8.1991 to 31.12.1991 Rs.20,46,994.23 Nil b 3.8.1992 1.1.1992 to 29.2.1992 Rs.10,77,390.00 Nil c 1.10.1992 1.3.1992 to 31.8.1992 Rs.19,96,362.88 Nil d 25.2.1993 1.9.1992 to 31.1.1993 Rs.19,83,411.76 Nil Total Rs.71,04,159.47 2.
The Notification No.
Since product was having flash point below 94 C, therefore, there was numberquestion of any suppression as alleged by the Department.
The third member agreed with the Technical Member and by majority the decision went against the assessee appellant.
The judgment is reported in 2000 123 ELT 789 Tribunal Castrol India Ltd. v. Commissioner of Central Excise, Calcutta I .
As its product is admittedly a lubricating oil, the scope of the Notification cannot be restricted to the lubricating oils falling under a particular tariff entry.
The dates of show cause numberices, the period involved, the duty demanded and the penalty demanded are as follows Sl.
Three classification lists were filed by the appellant which were operative from 1.4.1986, 5.5.1996 and 1.3.1998.
ARIJIT PASAYAT, J. Appellant calls in question legality of the judgment rendered by Customs, Excise Gold Control Appellate Tribunal, Calcutta in short the CEGAT .
The undisputed process of manufacture of the said product as stated by the appellant is as under Base Oils are taken to the blending kettle, heated to remove moisture.
Additives are added and mixed well.
