Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Central Excise Act |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Central Excise Act, 1944-Sections 3 and 5A(4)-Assessee manufacturing blended lubricating oil having flash point below 94°C and classifying it under heading 2710.99-Exemption Notification No. 120/84-CE of 11.5.1984 exempting blended or compounded lubricating oils from excise duty-Claim of-Majority view of the Tribunal that benefit of Notification applicable only to the lubricating oils falling under heading 2710.60 and lubricating oil with flash point below 94°C ceases to be lubricating oil falling under heading 2710.60 but under heading 2710.99 - Sustainability of-Held: Under the Notification lubricating oil was exempted without reference to any tariff heading/sub-heading and as such criteria satisfied-Hence, majority view unsustainable and the minority view that the Notification extends benefit to all types of lubricating oils, irrespective of their classification, upheld-Central Excise Tariff Act, 1985, Heading 2710.60 and 2710.99. Words and Phrases: 'That is to say', 'excluding'-Meaning of-In the context of Central Excise Tariff Act, 1985, Heading 2710.60. Blended or compounded lubricating oil with flash point above 94°C were classifiable under sub-heading 2710.60 and other lubricating oils were classifiable under sub-heading 2710.99. Exemption Notification No. 120/ 84-CE dated 11.5.1984 exempted blended or compounded lubricating oils from excise duty. Appellant - company is manufacturing blended lubricating oil ordinarily used for lubrication having flash point below 94°C. It classified the product under heading 2710.99 and cleared the same at 'nil' rate of duty during different periods. Respondent-Department issued show cause notices and thereafter levied duty. Assessee preferred appeals before CEGAT contending that benefit of Notification is applicable only to the lubricating oils falling under sub-heading 2710.60; and that for the purpose of exemption Notification lubricating oil for flash point below 94°C ceases to be lubricating oil falling under sub-heading 2710.60 as it acquires general description 'others' under sub-heading 2710.99. Appellant contended that the Notification extends the benefit to all types of lubricating oils, irrespective of their classification and that since the product is a lubricating oil, scope of notification cannot be restricted to lubricating oils falling under particular tariff entry. Majority view of the Tribunal accepted the stand of the Department and dismissed the assessee's appeals. Hence the present appeal. |
Judge | Hon'ble Dr. Justice Arijit Pasayat |
Neutral Citation | 2005 INSC 108 |
Petitioner | M/s. Castrol India Ltd. |
Respondent | Commissioner Of Central Excise, Calcutta-i |
SCR | [2005] 2 S.C.R. 414 |
Judgement Date | 2005-02-25 |
Case Number | 6289-6290 |
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