Liquid sorbitol classification turns on separate chemically defined compound treatment under Chapter 29, not Chapter 38.

Liquid sorbitol with a definite chemical formula and full crystallisability was treated as a separate chemically defined organic compound. Chapter 38 excluded such compounds under Note 1(a), while Chapter 29 covered separate chemically defined organic compounds under Note 1(a). The chemical examination and HSN guidance supported classification of sorbitol dissolved in water under Chapter 29, and the Revenue did not rebut evidence of nil or negligible di-saccharide and polysaccharide content. The product was therefore classifiable under CET sub-heading 2905.90 and not under Chapter 38.

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Issues: Classification of sorbitol in liquid form under the Central Excise Tariff and its eligibility for the concessional rate.

Analysis: The product was found on chemical examination to be a sorbitol solution with a definite chemical formula and to be fully crystallisable. Under Note 1(a) of Chapter 38, separate chemically defined compounds are excluded from that chapter, while Note 1(a) of Chapter 29 covers separate chemically defined organic compounds. The HSN notes also indicate that sorbitol of Chapter 38 is difficult to crystallise, whereas sorbitol dissolved in water remains classifiable under Chapter 29. The Revenue did not rebut the evidence that the product had nil or negligible di-saccharide and poly-saccharide contents.

Conclusion: The product was correctly classified under CET sub-heading 2905.90 and not under Chapter 38.

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