TMI Blog1978 (6) TMI 60X X X X Extracts X X X X X X X X Extracts X X X X ..... erned with the question whether or not the said soap base greases manufactured by the appellant Company were excisable goods under Item No. 11B of the 1st Schedule to the Central Excise Act. The Asstt. Collector, Calcutta, II Division by the notice dated 31st May, 1976 alleged that greases made by the appellant Company out of duty paid compounded lubricating oils fell within the Item No. 11B of the 1st Schedule of the aforesaid Act and the Company was asked to show cause why a penalty should not be imposed upon it and why the duty involved on the said greases should not be realised under Rule 9(2) of the Central Excise Rules, 1944. 2. The appellant filed a writ petition in this Court challenging the validity of the said proceeding in rega ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty had been already paid on any of the item used in manufacturing the appellants products, it was entitled to claim credit of the duty already paid in terms of Rule 56A of the Central Excise Rules, 1944. 4. The Item No. 11B of the 1st Schedule of the Central Excises and Salt Act, 1944 was as follows :- Item No. 11.—BLENDED LUBRICATING OILS AND GREASES Item No. Tariff Description Rate of duty (1) (2) (3) 11B Blended or compounded lubricating oils and greases - "Blended or compounded lubricating oils and greases", means lubricating oils and greases obtained by straight blending of mineral oils or by blending or compounding of mineral oils with any other ing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... el oils etc. in Item Nos. 8 and 9, furnace oil in Item No. 10 are all derived from mineral oils but having different properties. Other by-products obtained by refining crude petroleum or shales and not otherwise specified, including refinery gases, lubricating oil and greases, waxes and coke were excisable under Item No. 11A. Central Government, however, by a notification dated 25th April, 1964 had exempted certain kinds of lubricating oils and lubricating greases falling under the said Item No. 11A subject to conditions specified therein. 5. The appellants purchased mineral oil which according to it were already blended with obtain additives and the same were called lubricating oils. In our view, such lubricating oil used in manufacture ..... X X X X Extracts X X X X X X X X Extracts X X X X
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