Per Archana Wadhwa :

As a common question of fact and law is involved in both these appeals, the same were heard together and are being disposed of by a common order.

2. The appellants were issued two different show cause notices raising demand of duty against them in respect of their product, 'Super TT' cleared at 'nil' rate of duty during different periods involved in the said two appeals. The said notices have culminated into two different Orders impugned before us confirming proposed amount of duty and imposing personal penalty, as detailed below.

3. Brief facts of the cases are as under :-

3.1. The appellants are engaged, inter alia, in the manufacture of blended or compounded lubricating oils. They also process a product called 'Super TT' which the appellants claim to be a blended lubricating oil ordinarily used for lubrication. The undisputed process of manufacture of the said product as given by the appellant firm in their appeal memos, is as under:-

'Base Oils are taken to the blending kettle, heated to remove moisture. Additives are added and mixed well. Temperature reduced and MTO and green dye added and mixed well, to get the final product.'

3.2 As admittedly, the flash point of the 'Super TT' is below 94oC, the same is not classifiable under Heading 2710.60 of the Tariff as the same takes into its ambit lubricating oils having flash point more than 94oC. As such, the product is rightly classifiable as 'others' under sub-heading 2710.99 and the appellants do not dispute this position. In fact, the disputed arena is the benefit of the exemption Notification No. 120/84-CE dated 11.5.84. Whereas the Department contends that the said Notification is applicable only to the lubricating oils falling under sub-heading 2710.60, as there is no other heading for lubricating oil in the Central Excise Tariff Act, 1985, the appellants' stand is that the said exemption Notification extends the benefit to all the lubricating oils, irrespective of their classification and as their product is admittedly a lubricating oil, the scope of the Notification cannot be restricted to the lubricating oils falling under a particular tariff entry.

4. Arguing on the appeals, Shri J.R. Cama, learned Advocate submitted that the appellants are engaged in the manufacture of the said product for the last 10 years and have been clearing the same as blended lubricating oil with the full knowledge and consent of their Central Excise Officers. Prior to the introduction of Central Excise Tariff Act, 1985, the said product was being classified by them under Tariff Item 68 of the erstwhile tariff and the same was being cleared without payment of duty by claiming the benefit under exemption Notification No. 120/84 dated 11.5.84. Under the new tariff, they claimed the classification under Chapter Sub-heading 2710.99 along with the benefit of Notification No. 120/84-CE. He submitted that three Classification List No. 10/Indrol/R-13/3/8 dated 19.11.86 effective from 1.4.86; No. 11/Indrol/R-13/3/8 dated 19.11.86 effective from 5.5.86; No.22/Indrol/R-13/3/8 dated 18.3.88 effective from 1.3.88 were filed by them. All these classification lists were approved by the Assistant Commissioner by extending the benefit of Notification No. 120/84. He submitted that the Classification List dated 18.3.88 was operative during the period material in question and the goods were being cleared in accordance with the same. Drawing attention to these Classification Lists, he submitted that the fact that the lubricating oil was having flash point below 94 0C was duly declared by them. The classification was approved and th