CESTAT Ruling : Bituminous compound classifiable as lubricating oil due to its end use

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Where assessee manufactures bituminous compound but said product was commercially known as lubricating oil because of its end use, same was classifiable under heading 2710.60

Classification of goods (OR) – Bituminous compounds 33-S, -22, -33, -43 & 33-5 – ALPHA SMR-65, -75, -120 – Period February 1997 to March 1998 – Assessee was manufacturer of Bituminous compounds 33-S, -22, -33, -43 & 33-5 and ALPHA SMR-65, -75, -120 – Revenue by an impugned order classified said products under heading 2715.90 .There were no denying of fact that product in question was manufactured by mixing various solvents such as Bitumen Asphalt, used lubricating oil & sediment of lubricating oil in mineral solvent  But according to assessee, resultant product which came into picture after mixing and blending was lubricating oil and not Bituminous compound as claimed by department and, thus, same was to be classified under heading 2710.60 .

However, according to revenue classification could not be determined on basis of use of product – Whether if chemical composition of product was to be determinative factor then sub-heading 2710.60 would become redundant as all lubricating oils falling under 2710 would find classification in other subheadings described on basis of technical features and parameters of material Held, yes.

Whether thus, assertion made by revenue that classification could not be determined on basis of use of product was misplaced, especially in instant case where sub-heading itself requires use of product as a major criteria for classification Held, yes – Whether thus, appeal against impugned order was to be allowed – Held, yes 

Citation : [2018] 96 taxmann.com 29 (Mumbai – CESTAT)