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TMI Blog2024 (11) TMI 884X X X X Extracts X X X X X X X X Extracts X X X X ..... observe that Low Aromatic white Spirits (LAWS) is a specific high value segment of non-fuel petroleum products. These are manufactured by refractionation of wide boiling refinery products like, gasoline fraction. This is further subjected to 'Dearomatization' process to make aromatic free to specified aromatic content, products. Products of different aromatic content as required by application could be made by blending aromatic free products to base fraction or partially dearomatized stocks. With regard to Nomenclature and classification, we find that these products widely vary in boiling range, hydrocarbon group composition, depending upon the end use, storage, safety, environmental and health considerations. Petroleum products are complex mixtures of hydrocarbons and the products are designed based on application requirements. Therefore overlapping of boiling range, compositions and physical characteristics amongst various products is common. For the purpose of international trade and movement, the World Customs Organization (WTO) has classified goods under the Harmonized System Nomenclature (HSC). Each material is assigned a unique eight digit code number, reflecting som ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) And HON BLE SHRI K. ANPAZHAKAN , MEMBER ( TECHNICAL ) Shri Arijit Chakraborty, Advocate for the Appellant Shri Subrata Debnath, Authorized Representative for the Respondent ORDER ORDER: [PER SHRI K. ANPAZHAKAN] M/s. Iris Products, 60/1, Chowringhee Road, Alexandra Court, Kolkata 700 020 [hereinafter referred to as appellant ] have filed a Bill-of-Entry bearing No. 9822085 dated 04.12.2020, for clearance of 38,400 kgs. of imported goods with the description Low Aromatic White Spirit classifying the same under the Customs Tariff Item No. 2710 1990. The declared assessable value of the goods was Rs.16,36,497/-. 2. The goods imported by the appellant were examined by the Customs Officers and after examination, samples were drawn and sent for testing to Central Revenues Control Laboratory (CRCL), Kolkata. As per the Test Report received from CRCL, Kolkata, the Department was of the view that the impugned goods imported by the appellant satisfied the characteristics of 'Kerosene' as per IS 1459:2018 and accordingly, the same are Kerosene classifiable under CTH 2710 1910. Kerosene, classifiable under CTH 2710 1910, could be imported only by State Trading Enterprises (STEs) or th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which are required to be tested, namely: i. Acidity ii. Sediment iii. Water iv. Ash v. Flash Point vi. Density vii. Initial Boiling Point (IBP) viii. Final Boiling Point (FBP) ix. Smoke Point x. Sulphur content However, in the said Test Report, only some parameters have been tested and the other parameters have not been tested; without testing all the parameters as required under IS 1459:2018, the said Laboratory has arrived at a conclusion that the sample is having the characteristics of 'Kerosene'. Kerosene, which is classifiable under CTH 2710 1910, could be imported only by State Trading Enterprises (STEs) or the agencies approved by DGFT, in terms of the Import Export Policy. The Department thus has tested the goods imported only for Kerosene . It is also contended that the Department has not conducted the test to find out whether the goods imported fulfil the requirements for Low Aromatic White Spirit as claimed by the appellant. Thus, the appellant's contention is that such an inconclusive report cannot form the basis for changing the classification of the goods. 5.1. In support of their claim, the appellant has produced the Order passed by this Tribunal in the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /kg) (b) Bloom on glass ND ND 20 (Max.) Not darker than grey (3) Colour (Saybolt) ND 10 (Min.) (4) Copper Strip Corrosion For 3 hrs. at 60 C ND Not worse than 1 (5) Distillation Test 1. Initial Boiling Point ( C) 2. Recovery below 200 C (Vol%) 3. 90% Recovery Temp ( C) 4. Final Boiling Point 144 ND ND 222 NS 20 (Min.) NS 300 (Max.) (6) Flash Point (Abel) C 42 35 (Min.) (7) Smoke Point (mm) 21 18 (Min.) (8) Total Sulfur (mass%) Mercaptan sulfur mass% (1000ppm) ND 0.25 (Max.) NS (9) Density at 15 C (g/cc) 0.7882 ND NS NS (10) Aromatic Content (Vol%) (11) Water content (mass%) ND NS ND-Not Done, NS-Not Specified 8.2. A perusal of the comparative chart shown above reveals the following: (3) Colour (Saybolt)- IS: 1459 Requirement- 10 (Min) This indicates that dark pale colour is acceptable for Kerosene, while lighter to water white colours are required for LAWS. However, this parameter was not tested by CRCL, Kolkata. (4) Copper Strip Corrosion Test- IS: 1459 requirement- Not worse than '1'. This is to make sure that equipment and system is safe against corrosion. This is critical requirement for application and should have been tested. However, CRCL, Kolkata has not tested this ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ets the requirement of Low Aromatic White Spirit as claimed by the appellant. The claim of the appellant cannot be rejected without testing whether the goods imported by the appellant satisfy the requirements for Low Aromatic White Spirit , which is similar to light oils and preparations . 11. From the literature submitted by the appellant, we observe that Low Aromatic white Spirits (LAWS) is a specific high value segment of non-fuel petroleum products. These are manufactured by refractionation of wide boiling refinery products like, gasoline fraction. This is further subjected to 'Dearomatization' process to make aromatic free to specified aromatic content, products. Products of different aromatic content as required by application could be made by blending aromatic free products to base fraction or partially dearomatized stocks. 11.1. With regard to Nomenclature and classification, we find that these products widely vary in boiling range, hydrocarbon group composition, depending upon the end use, storage, safety, environmental and health considerations. Petroleum products are complex mixtures of hydrocarbons and the products are designed based on application requirements. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... peal No. 75125 of 2022 CESTAT, Kolkata] wherein it has been held that the goods imported merit classification under CTH 2710 1990. We observe that the goods imported by the appellant are similar to the goods imported in the case-law cited by the appellant (supra). On perusal of the Order referred to supra, we observe that the light oils and preparations imported by the M/s. Maxtone Petrochemicals in the said case, having characteristics similar to the impugned goods, have been classified under the Customs Tariff Item No. 2710 1990. 14. In view of the above, we hold that the goods imported by the appellant are Low Aromatic White Spirit , as claimed by the appellant and the same are appropriately classifiable under the Customs Tariff Item No. 2710 1990. 15. We observe that the ld. adjudicating authority has reclassified the goods imported by the appellant as Kerosene under the Tariff Item No. 2710 1910. Kerosene, classifiable under CTH 2710 1910, could be imported only by State Trading Enterprises (STEs) or the agencies approved by DGFT, in terms of the Foreign Trade Policy, 2015-20. As the goods imported by the appellant are Low Aromatic White Spirit and classified under the CTH 271 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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