TMI Blog1999 (4) TMI 194X X X X Extracts X X X X X X X X Extracts X X X X ..... No. 68 of the erstwhile Central Excise Tariff and clearing the same on payment of duty. This, according to the appellants, was being done under a mistake as no duty was leviable on their final product because no manufacturing activity was being undertaken by them. The appellants discovered the above mistake on issuance of a Trade Notice No. 206/75, dated 5-11-1975 by the Bombay Collectorate, which was based upon the Tariff Advice No. 3/74 issued by the Central Board of Excise and Customs, laying down that no further excise duty was payable on blended or compounded lubricating oils processed from blended or compounded lubricating oils with or without additives, both falling under the same Item No. 11B of the erstwhile Central Excise Tariff. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... all the products are the results of blending of already blended or compounded lubricating oils with or without addition of a small quantity of additives. He drew attention to the Tariff Advice issued by the Board, which has been issued after consultation with the Ministry of Law and Justice and is to the effect that the further process of blending or compounding with or without addition of any additives, as the case may be, would not constitute `manufacture within the meaning of Section 2(f) of the Central Excises and Salt Act, 1944 and the resultant products are not liable to pay further duty under Item No.11B. He submitted that there is no dispute in the instant case that the appellants products have been produced by the process of blend ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Commissioner (Appeals) and submitted that the products manufactured by the appellants have been given different names and different grades and are being sold by them for different purposes. Drawing attention to the impugned Order, he submitted that for example, Castrol Deusol has been advertised as stationery engine lubricating oils containing additives having anti-oxident and mildly detergent properties, whereas the Castrol Perfects has been advertised as mineral oils of high viscosity index intended for rotary and reciprocating air compressors and for possessing good inherent oxidation resistance and demulsibility characteristics. These have been advertised as excellent circulating oils which are suitable for ring oil bearing lubrication ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ating oils from which they are produced, the further process of blending or compounding with or without the addition of additives, as the case may be, would not constitute manufacture within the meaning of Section 2(f) of the C.E.S.A., 1944 and the resultant products are not liable to pay further duty under Item No.11B, where the Department is satisfied that the resultant lubricating oils and greases are made from the duty-paid products under 11B of the erstwhile Central Excise Tariff. 5. It is further observed in the said Tariff Advice of the Board that after taking into account the above legal opinion and ascertaining the trade practices, the Board is of the view that the goods of all the three types referred to in para 1 of the above ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... come into existence. We bear in mind that the Board s Advice referring to the resultant blended or compounded lubricating oils known differently in the market, means that the product should be different from the product from which they have been produced i.e. the resultant product must have the properties and uses entirely different from the properties and uses of input, lubricating oil. Oils having a different name and brand under which the resultant products are being marketed by the appellants, would not have the effect for terming the activity undertaken by the appellants as manufacture . The subsequent classification list approved by the Department holding the resultant products as non-excisable also comes in favour of the appellants. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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