Tariff classification of gas condensate favored heading 2709 where no conclusive evidence showed refining into heading 2710 products.

Imported Qatar Low Sulphur Condensate was classified under Chapter heading 2709 because HSN notes treat natural crude petroleum oils and gas condensates as falling within that heading where only minor processes have occurred and essential character remains unchanged. The Tribunal gave weight to the import documents and surrounding commercial evidence, and found that conflicting chemical opinions did not displace that material. As no conclusive evidence showed major processing, forgery, under-valuation, or a refined product answering heading 2710, the Revenue's proposed classification under heading 2710 was rejected.

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Issues: Whether the imported Qatar Low Sulphur Condensate was classifiable as petroleum crude/gas condensate under Chapter heading 2709 and eligible for exemption, or as petroleum oil other than crude under heading 2710.

Analysis: The competing tariff entries had to be read with the HSN explanatory notes for Chapter 27, which recognise that crude petroleum oils and gas condensates remain in heading 2709 if they are natural products and have undergone only minor processes that do not change their essential character. The imported goods were accompanied by commercial documents describing them as Qatar LSC, and the laboratory material showed overlapping physical and chemical characteristics between gas condensates and certain products of heading 2710. The record also showed conflicting opinions from the Chemical Examiner, and the classification opinion could not, by itself, displace the import documents and the surrounding commercial evidence. The Tribunal noted that no conclusive material showed that the goods had undergone any major process taking them out of heading 2709, nor was there proof of forged documents, under-valuation, or any decisive indication that the goods were refined products of heading 2710.

Conclusion: The goods were held classifiable under heading 2709, and the Revenue's classification under heading 2710 was rejected.

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