Benzene, toluene and xylene - Classification of - Central Excise - 83/20/86-CX.3

Benzene, toluene and xylene - Classification of Letter No. 83/20/86-CX.3 Dated 22-9-1986 Government of India Ministry of Finance (Department of Revenue) New Delhi Doubts had been raised as to whether toluene, benzene and xylene are classifiable under Chapter 27 or 29 of the Schedule to the Central Excise Tariff Act, 1985, for purposes of levy of duty. 2. The matter has since been examined by the Board. It has been observed that in the Customs Tariff which is based on the Harmonized System, benzene, toluene and xylenes falling under heading No. 27.07 and 29.02 are clearly distinguishable based on their purity. Heading No. 27.07 excludes separate chemically defined compounds in the pure or commercially pure state obtained by further fractionation or by other processing of tar oils, products obtained by such processes and having a specific purity criteria fall under Chapter 29. 3. The distinguishing criteria between Chapter 27 and Chapter 29 are given in the H.S.N. Explanatory Notes for Benzene, Toluene and Xylenes in Chapter 29. In the case of Benzene it must distil 1% to 96% by volume within a 2°C range which includes 80.1°C Benzene of lower purity falls under Heading No. 27.07. In respect of Toluene it must distil 1% to 96% by volume within a 2°C range which includes 110.6oC, for classification under heading No. 29.02. Toluene of lower purity falls under Heading No. 27.07. In respect of xylene it must contain 95% or more by weight of zylone isomers (all isomers being taken together) to fall under Heading No. 29.02, Heading No. 27.07. 4. It has been viewed that in the Central Excise Tariff the Heading No. 27.07 exactly corresponds to the Heading No. 27.07 of Customs Tariff. Similarly, Heading No. 29.01 corresponds to the sub-chapter 1 of Chapter 29 of Customs Tariff in which the hydrocarbons are classified. Thus the scope of both the headings in the Excise Tariff is same as in the Customs Tariff. 5. Accordingly, the Board is of the view that the distinguishing criteria for benzene, toluene and xylene as laid down in the Explanatory Notes of the Harmonized system could be adopted while determining the classification of those products for purposes of levy of central excise duty.