AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2024 (3) TMI 1530
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....yrolysis Oil under negative list or require any additional NOC/licenses for export". 2. Applicant has stated as follows in their statement of relevant facts having a bearing on the question(s) raised enclosed with the CAAR-1 application: That as per study of committee comprising CPCB-Delhi, IIT-Delhi and NEERI-Nagpur (Study on Tyre Pyrolysis Plant's adequacy - Pg 7), Pyrolysis technically is defined as follows: "Pyrolysis is chemical reaction that involves molecular breakdown of larger molecules to smaller molecules by heating in absence of air. Pyrolysis is also known as Reverse cracking, thermolysis, depolymerisation etc". Further, manufacturing flow process of Pyrolysis technically is defined as follows: Typically, the process of tyre pyrolysis includes feeding of scrap tyres, into reactor where they are heated in absence oxygen for breakdown of long chain hydrocarbons (polymers). The reactors are generally 2.1M to 2.8M of diameter and 6M to 6.5M length. Heating of the reactor is carried out through burners which uses liquid, gas or wood for initial heating. The reactor is slowly rotated during the heating process. Tyre Pyro gas starts generating a....
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....g used for burning in duel fuel burner. Once the reactor attains the temperature (360℃ to 380℃), to breakdown the molecules, the vapours are generated. The vapour is liquefied to obtain pyrolysis oil by using condenser. The non-liquefied vapor is combustible gas, which is utilized to further increase the temperature of the reactor for completion of process. The reactors are set to maintain at a controlled temperature and pressure for about 7-9 hours. After which the reactors are set to cool for about 10-12 hours. Once the batch process is completed, Carbon black, the intermediate product of the process is recovered from the reactor mechanically through screw. Duration to unload the fractions from the reactor takes about 2-4 hours. Tyre wire Steel Scraps are removed mechanically after opening of reactor door. As per study report of committee comprising CPCB-Delhi, IIT-Delhi and NEERI- Nagpur (Study on Tyre Pyrolysis Plant's adequacy - p. g. 18), in conclusions of the study, Tyre pyrolysis oil's parameter is observed as follows: "Tyre Pyrolysis Oil (TPO) has high calorific value in the range of 6300kcal/kg to 10200kcal/kg and low sulphur content in ran....
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.... in burners and other heat applications such as reactors, boilers, heat furnace etc. The oil is also used as an input to chemical plants such as SHELL and BASF for other alternative non energy uses. Tyre pyrolysis recovered carbon black after cleaning and grinding used as a replacement of virgin carbon blacks in plastic, paint and rubber industry. The applicant has submitted that from the above mentioned technical properties it is very clear that the subject goods viz. Tyre Pyrolysis Oil (TPO) is not similar to Petrol/ Diesel/ Kerosene Oil. Since, the subject goods do not match with any specific BIS standard and the subject goods are being used as furnace oil/chemical plant raw material it may be fit to be classified under CTH 27101990 and Recovered Carbon Black may be fit to be classified under CTH 28030010. 3. Statement containing applicant's interpretation of law and/or facts, as the case may be, in respect of the questions(s) on which advance ruling is required is follows: Chapter 27, Heading 2710 refers to "Petroleum oils and oils obtained from bituminous minerals (other than crude) and preparations not elsewhere specified or included, containing by weight 7....
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....rt and import data world over it is seen that that the two commodities are settled for the classification in the two above mentioned tariff headings only. The Explanatory Notes Harmonised Commodity Description and Coding System published by World Customs Organisation under Chapter heading also support the same. Here in this case it is observed that there is already one advance Ruling for the Pyrolysis Oil and the Carbon Black retrieved/ recoverable from the tyre waste. In view of the reasons, as mentioned above the Pyrolysis Oil and carbon Black is classifiable in heading 27101990 and 28030010 respectively". 5. A personal hearing in the matter was conducted on 12.01.2024 in office of the CAAR, Mumbai. During the personal hearing the authorized representative of M/s. FINSTER BLACK PRIVATE LIMITED, Shri Ashwani Kumar Prabhakar, Consultant reiterated their earlier written submissions made in the applications to CAAR, Mumbai. They also relied upon case law 2022 (382) ELT 282 AAR Cus-Mumbai in the matter of Pairan Pyrolysis Pvt. Ltd. (dated 11.04.2022) to strengthen their argument. Nobody appeared from the concerned Jurisdiction Commissionerate i.e. Nhava Sheva-I, JNCH during the sai....
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....all be determined according to the terms of the headings and any relative section or chapter notes and, provided such headings or notes do not otherwise require, according to the succeeding rules of classification. The explanatory notes to heading 3826 states that biodiesel can be obtained from vegetable oils (e.g., rapeseed, soya-bean, palm, sunflower, cotton-seed, jatropha), from animal fats (e.g., lard, tallow) or from used oils or fats (e.g., frying oils, recycled cooking grease). TPO is obtained from the pyrolysis process as compared to the process of transesterification followed to obtain biodiesel. Further, the source material for manufacturing biodiesel can be vegetable oils, animal fats or used oils or fats. The source material for TPO is the end of life tyre. Based on the above-mentioned differences, TPO does not appear to merit classification as biodiesel under heading 3826. Relevant extract of the explanatory notes to heading 3826 is reproduced as follows: 38.26 - Biodiesel and mixtures thereof, not containing or containing less than 70 % by weight of petroleum oils or oils obtained from bituminous minerals. Biodiesel consists of mono-alkyl esters o....
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....eum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations; waste oils are included in heading 2710. This heading covers oils obtained in more or less broad fractions by the distillation or refining of crude petroleum oils or of crude oils obtained from bituminous minerals and other oils having similar characteristics. Note 2 to Chapter 27 states- references in heading 2710 to 'Petroleum oils and oils obtained from bituminous minerals" include not only petroleum oils and oils obtained from oils obtained bituminous minerals but also similar oils, as well as and oils obtained from those consisting mainly of mixed unsaturated hydrocarbons, obtained by any process, provided that the weight of the nonaromatic constituents exceeds that of the aromatic constituents. The HSN explanatory notes to heading 2710 elaborate that the heading 2710 includes, inter-alia, other similar oils in which the weight of the nonaromatic constituents exceeds that of the aromatic constituents. TPO consist of mixed hydrocarbons and the weight of the non-aromatic constituents exceeds that of aromatic constituents. HSN explanatory notes further state tha....
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....he carbon black recovered from tyre pyrolysis is not a natural carbon in the form of solid fuel. It is obtained as a result of the incomplete combustion of a hydrocarbon present in the used/ELT tyres. Therefore, recovered carbon black is not classifiable under subheading 270120. Accordingly, the carbon black under consideration is not excluded from heading 2803. Therefore, recovered carbon black merits classification under subheading 28030010. 8. On going through the issue at hand and available case laws in this regard it has been observed that a recent ruling No. CAAR/Mum/ARC/09/2022 dated 11.04.2022 in the case of M/s. Pairan Pyrolysis Pvt. Ltd. is passed on the question of classification of the same products i.e. "Tyre Pyrolysis Oil (Depolymerisation Oil) and Tyre Pyrolysis Recovered Carbon black", Customs Authority for Advance Rulings has ruled that the said products merit classification under sub-heading 2710 1990 and 2803 0010 respectively. I have gone through the observations of the Authority in the case of M/s. Pairan Pyrolysis Pvt. Ltd. and I am of the view that the Authority in the case ibid has deliberated upon every aspect to decide the case on merit. Further, the co....