TMI Blog1999 (9) TMI 375X X X X Extracts X X X X X X X X Extracts X X X X ..... Metaquench-40 , is covered by the scope of the said notification. The dispute has arisen on account of the Explanation given in the said notification to the expression, Speciality Oil . We, therefore, reproduce the Explanation to the said notification below :- Explanation. - For the purposes of this notification, speciality oil means any preparation made by blending or compounding of mineral oils falling under Chapter 27 of the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) with other oils or any other substance and is intended for industrial uses (other than for use as lubricant) and of which the lubrication function, if any, is only secondary in nature. 2. Revenue intends to read the Explanation in the following ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at from the example given under the meaning of blend , it is apparent that blend will imply mixing of two products of the same type whereas compound means compounding of two or more elements i.e.two or more different products because each element is to be considered different. Learned Representative, therefore, submits that the Explanation uses the expression - blending or compounding of mineral oils with oils or any other substance and therefore, the Explanation means - blending of mineral oils by themselves because all mineral oils used for blending are of the same type and they can be blended together. The word, compounding , will refer to mixing of mineral oils with other oils or with any other substance. Both types of products - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsformers, pressure transformers, carrying the base chemicals etc. (c) Processing Oils - These help in processing of the products in any industry, for example, rubber processing oil, emulsifier, textile oil, plasticizer oils, etc. Speciality oils are generally treated as non-lubricants. Their primary function is other than lubrication and their lubricating function, if any, is only secondary. In the circumstances, it is felt that the speciality oils manufactured from duty paid base mineral oils/lube-base stocks and pure/blended/compounded lubricating oils, falling under Items 6 to 11B of the C.E.T. would fall outside the purview of Item 11B of the C.E.T. However, compounded and lubricating oils, if any, which may be produced at the inte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to bring out a uniform rate of 12% adv. on speciality oil, as it was prevalent prior to the introduction of New Tariff i.e. under Item 68. It is only in this way that this object can be achieved, submits the learned Advocate by reading the Explanation in the manner as has been done now by the respondents. Our attention has also been drawn as to how the product is known in the market. Reference has been made to HPCL s Product Guide which indicates that speciality oil is used for special industrial process of lubrication which is only secondary purpose. It is, therefore, understood as speciality oil in the market. The Notification No. 287/86 is, therefore, to be construed in the manner how the commercial parlance interprets it, as has been he ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eaning that is assigned to it. We, further, observe from the meaning of expression, blending or blend and compound , as given in Webster s Dictionary, that these two words are not synonymous. Therefore, we cannot take the two words - blending or compounding - as synonymous to each other. We have to give appropriate meaning to these two words separately. Therefore, when the expression speaks of blending of mineral oils, it would mean straight blending of mineral oils because blend as is apparent, would mean the mixing of two products of the same type to achieve a desired quality, grade, test, colour or consistency. Therefore, to speak of compounding of mineral oils would not be a correct way of looking at it. We are, therefore, of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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