2024 (2) TMI 1644

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....Sheva. 2. Applicant has stated as follows in their statement of relevant facts having a bearing on the question(s) on which advance ruling is required enclosed with the CAAR-1 application: The Applicant is inter alia engaged in the import of 'Negozone 9347 F - Goodine'. The imported goods are used in rubber compounds, which is further used in manufacture of tyres so as to protect against environmental conditions like sun checking or atmospheric cracking. Negozone 9347 F - Goodine is composed of Paraffin Wax (35-55%), Microcrystalline wax (40-60%) ['Mineral Waxes'] and Ethene Homopolymer (less than 5%) i.e., Polyethylene Wax ['Artificial wax']. Composition of Negozone 9347 F - Goodine for which the Applicant is seeking an Advance Ruling is as given below: TABLE-1 SI. No. Composition CAS No. Percentage in the Composition 1 Paraffin Wax 64742-51-4 35 - 55% 2 Microcrystalline wax - Hydrocarbon waxes 63231-60-7 40 - 60% 3 Ethene Homopolymer i.e., Polyethylene wax 9002-88-4 1-5% The applicant submits that the manufacturing process involves obtaining wax from the petroleum refineries. From this wax, partic....

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....etroleum wax 2712 90 20 --- Lignite wax 2712 90 30 --- Slack Wax 2712 90 40 --- Paraffin wax containing by weight 0.75% or more of oil 2712 90 90 --- Other Further, World Custom Organization (WCO) HSN Explanatory notes to Heading 27.12 provides as under: (B) Paraffin wax, microcrystalline petroleum wax, slack wax, ozokerite, lignite wax, peat wax, other mineral waxes, and similar products obtained by synthesis or by other processes, whether or not coloured. Paraffin wax is a hydrocarbon wax extracted from certain distillates of petroleum oils or of oils obtained from shale or other bituminous minerals. This wax is translucent, white or yellowish in colour and has a relatively marked crystalline structure. Microcrystalline petroleum wax is also a hydrocarbon wax. It is extracted from petroleum residues or from vacuum-distilled lubricating oil fractions. It is more opaque than paraffin wax and has a finer and less apparent crystalline structure. Normally it has a high melting point than paraffin wax. It can vary from soft and plastic to hard and brittle and from dark brown to white in colour. All these waxes are covered b....

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....lline wax-hydrocarbon waxes and Ethene Homopolymer i.e. Polyethylene wax. It is evidently clear that CTH 2712 20 00 covers paraffin wax and not mixture of paraffin wax. And so the imported goods would be classified in CTH 27129090. Further, the classification has to be done as per GIR Rule 2(b) and Rule 3 which is as under: "Rule 2: (a) Any reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as presented, the incomplete or unfinished article has the essential character of the complete or finished article. It shall also be taken to include a reference to that article complete or finished (or failing to be classified as complete or finished by virtue of this Rule), presented unassembled or disassembled. (b) Any reference in a heading to a material or substance shall be taken to include a reference to mixtures or combinations of that material or substance with other materials or substances. Any reference to goods of a given material or substance shall be taken to include a reference to goods consisting wholly or partly of such material or substance. The classification of goods consisting ....

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....tion made in the written application. Nobody appeared for personal hearing from department side either in person or online. 6. I have taken into consideration all the materials placed on record in respect of the subject goods. I have gone through the response received from the Nhava Sheva-I, JNCH. I therefore proceed to decide the present application regarding classification of "Negozone 9347 - Goodine" on the basis of the information on record as well as the existing legal framework having bearing on the classification of the products in question under the first schedule of the Customs Tariff Act, 1975. 7. Heading 2712 covers both Paraffin Wax and Microcrystalline Petroleum Wax, more specifically under CTI 2712 2000 and 2712 9010 respectively. It is nobody's contention that Paraffin Wax and Microcrystalline Petroleum Wax are not covered under CTI 2712 2000 and 2712 9010 respectively. Applicant has contended that 'Negozone 9347 F - Goodine' which is composed of Paraffin Wax (35-55%), Microcrystalline wax (40-60%) ['Mineral Waxes'] and Ethene Homopolymer (less than 5%) i.e., Polyethylene Wax ['Artificial wax'] is classifiable under CTI 2712 2000 as ....