Classification of hexane under Chapter 29 upheld; Revenue failed to prove motor spirit requirements under Chapter 27.

n-Hexane/Exxsol Hexane, being a saturated acyclic hydrocarbon with a definite molecular structure, was classifiable under Chapter 29 as a separately chemically defined organic compound, not under Chapter 27. The HSN Explanatory Notes and the rule of specific heading over general heading supported that placement, and the DGFT clarification also pointed to Chapter 29. The product was not established to be motor spirit, because the Revenue proved only flash point and distillation range and failed to show use as fuel in spark ignition engines. The classification in favour of Chapter 29 was therefore affirmed.

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Issues: (i) Whether n-Hexane or Exxsol Hexane is classifiable under Chapter 27 as petroleum oil or motor spirit, or under Chapter 29 as a separate chemically defined organic compound; (ii) whether the Revenue established that the product satisfied the ingredients of motor spirit under Chapter 27; (iii) whether the HSN Explanatory Notes, the rule of specific heading over general heading, and the DGFT clarification supported classification under Chapter 29.

Issue (i): Whether n-Hexane or Exxsol Hexane is classifiable under Chapter 27 as petroleum oil or motor spirit, or under Chapter 29 as a separate chemically defined organic compound.

Analysis: The product was found to be a saturated acyclic hydrocarbon with the molecular formula C6H14 and a definite structural identity. Chapter 27 covers mineral oils and their distillation products, but its notes exclude separately chemically defined organic compounds, except where specifically provided. Chapter 29, by contrast, applies to separate chemically defined organic compounds, whether or not containing impurities, and specifically includes acyclic hydrocarbons such as hexanes. The HSN Notes were treated as an important aid in resolving the classification dispute.

Conclusion: n-Hexane was held classifiable under Chapter 29 and not under Chapter 27.

Issue (ii): Whether the Revenue established that the product satisfied the ingredients of motor spirit under Chapter 27.

Analysis: To fall within motor spirit, the product had to satisfy all relevant conditions, including that it be a hydrocarbon oil with flash point below 25 C and suitable for use as fuel in spark ignition engines. The Court found that the Revenue relied only on flash point and distillation range, without adducing cogent evidence that the imported product was used as fuel in spark ignition engines. The burden in classification matters lay on the Revenue, and that burden was not discharged.

Conclusion: The product was not proved to be motor spirit under Chapter 27.

Issue (iii): Whether the HSN Explanatory Notes, the rule of specific heading over general heading, and the DGFT clarification supported classification under Chapter 29.

Analysis: Rule 3(a) of the General Rules for the Interpretation of the Harmonized System required preference for the most specific description. The HSN Notes expressly identified hexane under Chapter 29 and indicated that separate chemically defined compounds are to be classified there, even if they contain permitted impurities. The DGFT clarification also stated that import of hexane falls under Chapter 29, and the Court treated that clarification as binding in the context of classification doubt.

Conclusion: The interpretative framework and the DGFT clarification supported classification under Chapter 29.

Final Conclusion: The classification adopted by the appellate authorities was affirmed, and the Revenue's challenge failed on the merits.

Ratio Decidendi: Where a product is a separate chemically defined organic compound specifically covered by Chapter 29, the Revenue cannot classify it under Chapter 27 as motor spirit merely on the basis of flash point or distillation range unless it also proves the statutory ingredients of motor spirit and the intended use as fuel in spark ignition engines.

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