Tariff classification turns on the product as cleared, not a constituent later extracted by the buyer.

For excise classification, the product had to be assessed in the form in which it was removed from the refinery. A liquefied petroleum gas stream described in the record as a hydrocarbon mixture commercially understood as Commercial Butane type LPG could not be classified as Isobutylene under Heading 2901.90 merely because the buyer later extracted that constituent. The record did not show a separately identifiable, chemically defined Isobutylene product of the purity required for Chapter 29 classification. The proper tariff entry was therefore LPG under Heading 2711.19, and classification based on the later extraction of a constituent was rejected.

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Issues: Whether the liquefied petroleum gas stream supplied by the assessee to the buyer was classifiable as Isobutylene under Heading 2901.90 or as liquefied petroleum gas under Heading 2711.19.

Analysis: The product removed from the refinery was found to be a mixture of hydrocarbons commercially known and understood as LPG and answering the description of Commercial Butane type LPG. The record did not establish that the stream emerging from the preparation unit was a separately identifiable Isobutylene product of the purity required for classification under Chapter 29, nor that the buyer's extraction of Isobutylene altered the character of the product removed from the refinery. The fact that duty was calculated on the net Isobutylene extracted, or that the buyer consumed only that constituent, was held insufficient to determine tariff classification. The product was required to be classified on the basis of the mixture as removed from the refinery, and not on the basis of the constituent later stripped out by the buyer.

Conclusion: The product was not classifiable as Isobutylene under Heading 2901.90 and was correctly classifiable as LPG under Heading 2711.19, in favour of the assessee.

Final Conclusion: The classification adopted by the lower authorities was set aside and the appeal succeeded on tariff classification.

Ratio Decidendi: For excise classification, the goods must be classified in the form and identity in which they are removed, and a constituent later extracted by the buyer cannot control the tariff entry unless the product cleared is shown to be a separately identifiable chemically defined compound.

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