Tariff classification of mixed LPG turns on commercial identity as cleared, not on gas later separated by the buyer.

A liquefied petroleum gas mixture with variable propylene content was classified under heading 2711.19 as other liquefied petroleum gases, because tariff classification depended on the commercial identity of the goods as cleared, not on a constituent later separated by the buyer. The mixture was not a pure or commercially distinct propylene product, so heading 2711.12 for liquefied propylene gas did not apply. On that classification, the concessional rate of duty under Notification No. 3/2001 was admissible.

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Issues: Whether the appellant's liquefied petroleum gas mixture was classifiable under heading 2711.12 as liquefied propylene gas or under heading 2711.19 as other liquefied petroleum gases, and whether the concessional rate of duty under Notification No. 3/2001 was admissible.

Analysis: The competing tariff entries distinguished between specified liquefied gases such as ethylene, propylene, butylenes and butadiene, and the residual category of other liquefied petroleum gases. The product cleared by the appellant was a mixture of gases, and the records showed that its propylene content varied from day to day rather than constituting a pure or commercially distinct propylene product. The fact that the buyer separated propylene from the mixture did not mean that the mixture itself was propylene gas for classification purposes. Classification had to follow the commercial and tariff identity of the goods as removed, not the constituent later extracted by the purchaser.

Conclusion: The product was classifiable under heading 2711.19 and not under heading 2711.12. The appellant was entitled to the concessional rate of duty under Notification No. 3/2001.

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