1994 (12) TMI 155

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.... entries are 27.07 and 29.02. 3. They filed classification lists from time to time under Chapter 29. The classification list filed after the budget of 1991 was approved provisionally by the A.C. pending chemical test. 4. On receipt of the test report the department sought to alter the classification from 2902 to 2707.20. 5. They replied to the show cause notice and requested for re-test. On re-test also the Chief Chemist reported that the sample does not satisfy the parameters for `toluene' as per HSN explanatory notes under Heading 29.02 aromatic hydro carbons. 6. The Asstt. Collector has held in his order that the product cannot be said to be chemically defined and easily recognisable as a separate chemical subs....

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....le to their case as well. 12. It was their submission that although HSN explanatory notes can be referred to, the classification has to be determined on the basis of the section notes and chapter notes in the tariff. 13. The Assistant Collector has also not discussed or distinguished the case law cited before him and the Certificate of Bombay University and I.I.T. 14. It was also their submission that three demand notices have been issued prior to the finalisation of the classification list and hence have been issued pre-maturely. The Collector (Appeals) has also erred in holding that `toluene' is classifiable under 27.01 and denying the benefit of Notification No. 75/84. 15. Ld. D.R. drew attention to the or....

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....' is a separate chemically defined organic compound but the point is whether the appellant's product is a high purity Toluene or an impure Toluene (mixed with other hydrocarbons). 21. However, once the product was, on chemical test found to have "the characteristics of toluene" it was required to be classified under Chapter 29 (even if contained impurities in traces) unless the product was found to be a mixture or Toluole covered by Chapter Note 3 of Chapter 27 but the department has not produced any evidence to the effect that it was such a mixture or `Toluole' whereas the appellants have produced certificates of Bombay University and IIT to show that the product is a high purity toluene (98.7%) with other hydrocarbons in traces. ....