Motor spirit classification fails unless both flash point and spark-ignition fuel suitability are proved

Classification of naphtha-derived products turned on whether they met both conditions for Heading 2710.13 as motor spirit: a flash point below 25 C and suitability for use as fuel in spark-ignition engines. The test reports for the relevant period showed a flash point above 25 C, and no evidence established fuel suitability. On that basis, the products could not be classified as motor spirit under Heading 2710.13 and were instead treated as other petroleum oils under Heading 2710.90, with the assessee's classification upheld.

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Issues: Whether the products manufactured from naphtha were correctly classifiable under Heading 2710.13 as motor spirit, or under Heading 2710.90 as other petroleum oils.

Analysis: Classification under Heading 2710.13 required the product to be a hydrocarbon oil with flash point below 25 C and to be suitable, by itself or in admixture, for use as fuel in spark-ignition engines. The test reports for the relevant period showed that the products had flash point above 25 C. No evidence was produced to establish that the goods were suitable for use as fuel in spark-ignition engines. The issue was already covered by earlier Tribunal decisions, and the Supreme Court had also declined to interfere where the Chemical Examiner's report was inconclusive and the Revenue had not discharged its burden.

Conclusion: The products were not classifiable under Heading 2710.13 and the assessee's classification was upheld.

Ratio Decidendi: A product cannot be classified as motor spirit under Heading 2710.13 unless both statutory conditions are satisfied, namely flash point below 25 C and suitability for use as fuel in spark-ignition engines; in the absence of proof on either condition, the Revenue's classification fails.

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