TaxTMI 
TaxTMI 
2011 (7) TMI 279
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....o carbons in the form of clear colorless liquid flashing below 25 degree centigrade and having boiling range 66 Centigrade to 69 Centigrade 4. On the above basis, Revenue entertained a view that since the flash point of the imported goods was below 25 degree centigrade and the distillation range was between 60 to 70 degree centigrade, the imported material was not a pure compound but an admixture of various hydrocarbons classifiable under Chapter 27. Accordingly, proceedings were initiated against them by way of issuance of show cause notice dated 21.03.2001, proposing classification of the goods under Customs Tariff Heading No. 2710.00 and Central Excise Tariff Heading No. 2710.12. Accordingly, the notice proposed confirmation of demands, in terms of Section 28 of the Customs Act, 1962. 5. During adjudication proceedings the respondents strongly contested that the N-Hexane is correctly classifiable under Customs Tariff Heading 2901.10 and Central Excise Tariff heading 2910.90, inasmuch as the same is separately defined chemical compound of a known structure with a chemical formula CH3 (ch2)4 CH3. The same is derived by the fractional distillation from petroleum....
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....llate authority observed that Assistant Commissioner has taken into consideration only the flash point and boiling range of the goods in question and has held that the same is not a pure compound but an admixture of various hydrocarbons, classifiable under heading 2710.10. He accordingly observed that Customs Tariff is based on HSN Notes and in case of dispute, the said notes act as valuable guides, as held by the Hon'ble Supreme Court in the case of CCE vs. M/s. Woodcraft 1995 (77) ELT 23 (SC). Accordingly, he referred to the HSN Chapter notes and held in favour of the assessee. For better appreciation, relevant part from the impugned order is reproduced below :- 7. Under HSN Chapter heading 29.01 deals with acrylic hydrocarbons and there are found to be of two categories, saturated and unsaturated. HSN Notes further explains that saturated acrylic hydro carbons of this heading include Hexanes with six atoms of carbon. Thus, there is a specific mention of Hexane in HSN under heading 2901.10. The product N-Hexane imported is having specific chemical formula CH3 (ch2)4 CH3. The appellants have also relied upon the original analytical report dated 10.05.2000 issued SGS Redwood Ser....
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....om Chapter 29 and are classifiable under Chapter 27. As such, learned DR has assailed the findings of the Commissioner (Appeals) that the goods in question are saturated acrylic hydrocarbon whereas the same are not. He also draws our attention to explanatory note A to Chapter sub-Section 29.01, which mentions that - to fall in this heading these saturated acrylic hydrocarbons must be in the form of separately chemically defined compound . He submits that Chapter heading 2710.12 of Central Excise Tariff covers the goods with special boiling point spirits, with normal boiling point range 63 to 70 degree Celsius. Inasmuch as the product in question covers the above requisite criteria, they have to be held as falling under heading 27.10. As regards suitability for use as fuel in spark ignition engine, he submits that hexane is derived from petroleum oil, mainly gasoline by fractional distillation and is used as fuel, as is evident from the write up in Kirk- Othmer Encyclopaedia of chemical technology. The leading manufacturer of hexane in India i.e. M/s. I.O.C.L is also classifying the goods under heading 2710.12 of the Central Excise Tariff. Inasmuch as the goods were having the same ....
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....lly defined organic defined compound. They have also contended that the burden of classification is on the Revenue, who has failed to establish the same. Reference has also been made to DGFT clarification for classification of Hexane under the ITC policy. Circular dated 14.07.2004 issued by DGFT clarifies that Hexane is classifiable under Chapter 29 of the ITC (HS Policy). The same has persuasive value for determining the classification under Customs and Central Excise Tariffs, as held by the Tribunal in the case of Unimers India Limited vs. CCE 2010 (250) ELT 225 (Bang.). 10. After considering the submissions made by both the sides we find that the issue required to be decided in the present appeal is as to whether the product imported and declared by the appellant N-Hexane is required to be classified under Customs Tariff heading 2901.10 and Central Excise tariff heading 2901.90 for the purposes of countervailing duty, as held by Commissioner (Appeal) or the same would fall under Chapter 27, as contended by the revenue. It is seen that the matter was being listed repeatedly before us and was being adjourned to await the outcome of an identical dispute involved in an app....
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....position of Hexane A is given in the said encyclopaedias is detailed as below :- Property Hexane A 2,3-dimethylibutane Hydrocarbon analysis, liquid vol% 0.05 2-methylpentane 3.48 3-methylpentane 9.38 n-hexane 63.91 Methylcyclopentane 19.43 Cyclohexane 0.78 Benzene 2.81 Dimethylpentanes 0.16 Physical and chemical properties Distillation (ASTM D1078) initial bp, ?C 68.3 Dry point 71.0 Flash point, ?C Aniline point, ?C (ASTM D611( Reid vapor pressure, kPa, a at 37.8?C 33.8 Dry point 71.0 Specific gravity (?API) 0.689 (73.9) Bromine number Peroxides (as H2 O2 ) ppm Carbonyls (as acetone), ppm Acidity Sulfur, ppm (ASTM D1266 app. 1) 25 Phenols, ppm (ASTM D52-R) Water, ppm Color (ASTM D156) 12. The comparison of composition given in the above encyclopaedia more or less matches with the composition of the ....
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....oes not produce separate chemically defined compounds in a pure or commercially pure state(Chapter 29) (emphasis supplied) Joint reading of the above shows that Chapter heading 27 covers the crude oil and its fractions. The separate chemically defined organic compounds in its pure or commercially pure state are taken out of the said Chapter and are placed under Chapter 29. We have already held that the goods imported by the appellants are in commercially pure form and presence of certain impurities therein is an admissible factor, which does not turn the product into anything else but a separately chemically defined organic compound. The same cannot be held to be a mixture of the main compound (which is to the extent of 63.91) with the other impurities present in the product. As is seen from the encyclopaedia referred supra, product in question meets the standard and requirement of commercially pure Hexane and matches with that of Hexane A given in said encyclopaedia. As such, in view of the Chapter notes also it has to be held that the goods are properly classifiable under Chapter 29. 14. On the other hand, in terms of Chapter note 1(a) of Chapter 29 of the Cus....