Classification of Heptene and Nonene under the Central Excise Tariff - Regarding - Central Excise - 528/157/93-(TU)

Classification of Heptene and Nonene under the Central Excise Tariff - Regarding F. No. 528/157/93-(TU) Dated 15-9-1994 Government of India Central Board of Excise Customs New Delhi Subject : Classification of Heptene and Nonene under the Central Excise Tariff - Regarding. Refer to proceedings to the Conference of Collectors of Customs held at Delhi and Bombay during February and December, 1993, respectively, wherein the above said issue was discussed. The Custom House Letter F. No. S/26-22/92-Appg. I, dated 22-8-1994 also refers. Subsequent to the December, 1993 Conference the matter was referred to the Chief Chemist who had confirmed that the samples of the said goods were, on test, found to conform to the criteria of smoke point and final boiling point as laid down for ATF under heading 2710.21 (CET). The matter has been examined. For the purposes of levy of additional duty, the items cannot be classified either as Motor Spirit or as Raw Naphtha under any of the sub-headings starting from 2710.11 and ending with 2710.19 of the Central Excise Tariff, since or all these sub-headings, the criteria of suitability for use as fuel in spark ignition engines is prescribed therein. However, the Tariff Entry (C.E.) for ATF does not prescribe any end-use but merely defines the item with reference to technical specifications which are said to be met by the subject goods and hence the items merit classification as ATF under the Excise Tariff. As regards levy of Customs duty, it is only a question of interpreting the Customs exemption notification, since there were no sub-division or definitions in the Tariff entry. In the notification (No. 35/90-Customs), Motor Spirit and Kerosene are defined which, the subject goods do not match. ATF is not defined and hence one has to go by the common parlance meaning of this item, which again the subject goods will not match. Thus, the items will fall under the residual entry at S. No. 9 of Notification No. 35/90-Cus., prior to 1993 Budget. Subsequent to the 1994 budget, Notification No. 19/94-Cus., applies which includes Naphtha, and for the reasons elaborated in the conclusions of the February, 1993 Tariff Conference, the goods will be classified as Naphtha under the said notification. It should be possible to classify the same goods as ATF under CET and as Naphtha under Customs notification, since the subject tariff entry and related description in the two tariffs are not aligned at all. Pending cases may be decided accordingly.