TMI Blog2011 (7) TMI 279X X X X Extracts X X X X X X X X Extracts X X X X ..... by them are used as solvents and there is no material evidence placed to allege that the same are used as spark ignition engine - In the absence of the same, the Revenue's contention that the product is falling under Chapter 27, cannot be upheld - Decided in favour of assessee. - C/588 of 2004 - A/1280/2011-WZB/AHD - Dated:- 15-7-2011 - Mrs. Archana Wadhwa, Dr. P. Babu, JJ. Appellant : Shri Rajendra Nagar, SDR Respondent : Shri J.C. Patel, Advocate Per : Mrs. Archana Wadhwa; Being aggrieved with the order passed by Commissioner (Appeals), Revenue has filed the present appeal. We have heard Shri Rajendra Nagar, learned SDR appearing for the Revenue and Shri J.C. Patel, learned advocate appearing for the respondents. 2. As per facts on record, the respondents imported several consignments of N-Hexane (Exxsol Hexane) and claimed clearance of the same under Customs Tariff Heading 2901.10 and under Central Excise Tariff Heading 2901.90 and accordingly filed bills of entry. The assessment was made provisional pending the chemical test reports of the samples. 3. Subsequently the test reports of the samples indicated as follows :- The sample is a mixture ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly rely upon the criteria of flash point and boiling point. They also referred to the Board s Circular F.No. 528/157/93-TU dated 15.09.1994 clarifying that Heptene cannot be classified as motor spirit or raw naphtha, since the criteria of suitability for use as spark ignition engine, as prescribed in the tariff is not satisfied. It was also their contention that even if the two rival headings 2901, 2710 have to be considered, the heading 2901 would get preference in view of the terms of Rule 3 (a) of the General Rules for interpretation of the Customs Tariff schedule, which provide that the most specific description shall be preferred to the heading providing a more general description. 6. The adjudicating authority did not accept the above contentions of the appellants and by merely relying upon the flash point and boiling point, held that the goods are correctly classified under Customs Tariff sub-heading No. 2710.00 and Central Excise Tariff sub heading No.2710.12. He accordingly ordered all the provisional assessments to be finalized. 7. Being aggrieved with the above order of Assistant Commissioner, respondents filed appeal before Commissioner (Appeals). The appellate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ther than motor spirit and therefore can be classifiable under Central Excise Tariff Heading 2710.90. (c) The Commissioner (Appeal) has not taken in view the Chapter Note to Chapter 29 of the Customs Tariff which reads as under :- (1) Except where the context otherwise requires, the heading of this Chapter apply only to (b) Mixture of two or isomers of the same organics compound (whether or not containing impurities), except mixtures of acylic hydrocarbon isomers (other than stereo isomers), where or not saturated (Chapter 27) Though, we find that the above grounds are not detailed and do not in any way rebut the findings of Commissioner (Appeals), both sides have filed detailed written submissions, which we have gone through. It stands strongly contended by the Revenue that the goods imported is a mixture of isomers of Hexane, as confirmed by chemical test report as well as analytic report dated 10.05.205 issued by SGS Redwood Services, relied upon by the respondents. As per the Chapter note 1(b) to Chapter 29 of Customs Tariff, a mixture of acrylic hydrocarbon isomer, whether or not saturated, are excluded from Chapter 29 and are classifiable under Chapter 27. As ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... SGS, which would clearly establish that N-Hexane imported by the respondents is a commercially pure hexane. They have also relied upon the HSN explanatory notes which specifically list hexane as falling under heading 29.01. Further, explanatory note under Chapter 27 further stipulates that crude petroleum oil and their distillation products falls under Chapter 27, but if such distilled product is a separated chemically defined organic compound, which is in the pure or commercially pure state, it would go out of Chapter 27 and fall under Chapter 29. It further stands contended that as per the scheme of Customs Tariff as also HSN explanatory notes, Chapter 27 covers the crude oil and its fraction which are obtained by refining such crude. These fractions are normally called as refinery products. The said Chapter does not cover downstream products obtained by further treatment of the fraction obtained from refining of crude, if, as a result of such treatment, a pure or commercially pure product emerges. The very fact that HSN specifically mentions Hexane under the heading 29.01 establishes that Hexane is separately chemically defined organic defined compound. They have also contended ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Total 6 Hydrocarbons 0.6733 63.93 99.71 (2.2 Dimethylbutane +2.3 Dimethylbutane+2 Methyl-pentane+3-Methylpentane+Normal Hexane+Methyl-cyclopentane+Cyclohexane) Total C5 Hydrocarbons 0.21 C7+Hydrocarbons 0.02 D3120 Sulfur content, PPM Wt. 1 D1353 Nonvolatile matter, mg/100ml 0.1 D156 Color Saybolt +30 D1093 Acidity of distillation residue Neutral GC Aromatics (as Benzene), ppm wt. 30` D1744 Water, PPM Wt. 90 D1492 Bromine Index, mg/100g 5 E299 Peroxides, PPM WT 1 E411 Carbonyl Compounds, PPM WT. 1 Table 10 as appearing in Kirk-Othmer Encyclopaedia chemical technology gives the composition and properties of three chemically identified as Hexane A Hexane, B and Hexane C . The composition of Hexane A is given in the said encyclopaedias is detailed as below :- Property Hexane A 2,3-dimethylibutane Hydrocarbon analysis, liquid vol% 0.05 2-methylpentane 3.48 3-methylpentane 9.38 n-hexane 63.91 Methylcyclopentane 19.43 Cyclohexane 0.78 Benzene 2.81 Dimethylpentanes 0.16 Physical a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enzene, phenol, pyridine) these are specific purity criteria indicated in Explanatory Notes 29.01, 29.07 and 29.33. Methane and propane are classified in heading 27.11, even when pure. (emphasis supplied) The above position is made more explicit by the scope of heading 27.10, as under The heading covers fractions as described above, even if they have been further treated to eliminate impurities (e.g. treatment with acids or alkalis, with selective solvents, with zinc chloride, with absorbent earths, etc., or by re-distillation), provided this treatment does not produce separate chemically defined compounds in a pure or commercially pure state(Chapter 29) (emphasis supplied) Joint reading of the above shows that Chapter heading 27 covers the crude oil and its fractions. The separate chemically defined organic compounds in its pure or commercially pure state are taken out of the said Chapter and are placed under Chapter 29. We have already held that the goods imported by the appellants are in commercially pure form and presence of certain impurities therein is an admissible factor, which does not turn the product into anything else but a separately chemically defined orga ..... X X X X Extracts X X X X X X X X Extracts X X X X
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