2017 (5) TMI 1127 - AT - Customs

Classification of imported goods - Mixed Xylene - classified under CTH 29.02 or under CTH 27.07? - Held that - to fall in Heading 29.02, xylene must contain 95% or more by weight of xylene isomers, all isomers being taken together and xylene of lower purity would fall in heading 27.07 - In the instant case, the subject goods is a mixture containing less than 95% by weight of xylene isomers and hence would be appropriately classifiable under Heading 27.07 (SH 2707.30-Xylole) - appeal dismissed - decided against appellant.

Summary

Issues: Classification of Mixed Xylene under Customs Tariff Heading No. 2704

Classification of Goods:
The appellant, M/s Jay Polychem India Ltd., imported Mixed Xylene and sought classification under Chapter Heading No. 29029090. However, based on a Customs Lab Test Report showing Xylene Isomers at 40.60%, the department classified the goods under Customs Tariff Heading No. 2704, as per the Explanatory Notes. The importer disagreed with this classification and requested a provisional assessment under a different provision.

Legal Proceedings:
Following a personal hearing, the Assistant Commissioner upheld the classification under CTH 2704, which was affirmed by the Commissioner (Appeals). Consequently, the appellant appealed to the Tribunal challenging the classification of Mixed Xylene.

Tribunal's Decision:
In the absence of the appellant, the Tribunal reviewed the case, referencing a previous decision involving Addisons Paints & Chemicals Ltd. The Tribunal analyzed the composition of the goods, emphasizing the distinction between Ethyl benzene and Dimethyl benzene as different organic compounds. It noted that the subject goods, a mixture of dimethyl benzene and ethyl benzene, did not meet the criteria of being a "mixture of two or more isomers of the same organic compound." Referring to relevant HSN Notes, the Tribunal concluded that goods with less than 95% xylene isomers should be classified under Heading 27.07, specifically SH 2707.30-Xylole.

Final Decision:
Based on the above analysis, the Tribunal affirmed the classification of the subject goods under SH 2707.30 of the CTA Schedule, dismissing the appeal. The impugned order was modified accordingly, classifying the goods under CTH 27073000, in line with the Tribunal's observations.

In conclusion, the Tribunal's judgment clarified the classification of Mixed Xylene based on the composition and purity of xylene isomers, highlighting the importance of meeting specific criteria for accurate classification under the Customs Tariff.