1993 (8) TMI 184 - AT - Central Excise

Tribunal affirms Dimer-Trimer classification as mineral fuel. Appeal by Gujarat Petrosynthese rejected.

The Tribunal upheld the classification of Dimer-Trimer under Chapter Heading 2710.99, as a mineral fuel, based on its chemical composition and properties ... Classification Issues:Classification of the product Dimer-Trimer under Chapter Heading 2710.99.Analysis:The appeal was filed by M/s. Gujarat Petrosynthese Ltd. against the order passed by the Collector of Central Excise (Appeals) Bombay regarding the classification of the product Dimer-Trimer. The appellants manufacture poly-isobutylene with C4 Raffinate (LPG) as the main raw material, obtaining Dimer-Trimer as a by-product used as a thinner for fuel. The provisional classification under Chapter Heading 2901.90 was challenged, leading to a final decision by the Assistant Commissioner (A.C.) classifying Dimer-Trimer under Heading/sub-heading 2710.99. The CCE (Appeals) upheld this classification, prompting the appeal.The appellant argued that the product, being 100% non-aromatic, should not be classified under Chapter 27, citing Chapter Note 2's requirement of non-aromatic constituents exceeding aromatic constituents. They proposed Chapter 29 or 38 for classification, emphasizing the organic nature of Dimer-Trimer as a solvent. The Department reiterated the classification under Chapter Heading 2710.99 based on the Collector (Appeals) detailed order.The Tribunal analyzed the chemical properties and uses of Dimer-Trimer, noting it as a mixture of Di-isobutylene and Tri-isobutylene, both combustible and used for alkylation. Referring to the Harmonized System explanatory notes and Chapter Note 1 of Chapter 27, the Tribunal concluded that Dimer-Trimer did not fall under Chapter 29 but rather under Chapter 27 due to its composition and properties. The product's nature as a thinner and its combustibility supported its classification as a mineral fuel under Chapter Heading 2710.99, aligning with the requirements of the Harmonized System explanatory notes.In light of the analysis, the Tribunal upheld the lower authorities' decision, classifying Dimer-Trimer under Chapter Heading 2710.99. The appeal was consequently rejected, affirming the classification based on the chemical composition and properties of the product.