Trade Notice No. 33/2001                                                                 Dated:- 24 .4.2001.

                    SUB: Central Excise - Classification of mixture of hydrocarbons-Fluron-11 and Fluron-12  - Regarding.

*****  

            Copy of  Board's Circular No.574/11/2001-CX  circulated in file no.  F.NO.104/1/2001 dated 12.4.2001 is communicated for information and necessary action.

              Contents of this trade Notice may please be brought to the notice of all concerned.

  ( Issued  from the C.NO.IV/16/2/2001 . CX.POL . VOL.1)

                                                                                                                                                              Sd/-

(JANAKI ARUNKUMAR)

ADDL.COMMISSIONER (TECH)

Copy of Board' Circular No.574/11/2001-CX (F.No. 104/1/2001/-CX.3 Dated:12.4.2001

 

Subject:-Classification of Mixture of hydrocarbons-Fluron-11 and Fluron-12  -Reg.

****

              A doubt has been raised as to whether mixture of hydrocarbons-Fluoron-11 & Fluoron - 12 are classifiable under chapter heading 3823.00 or under chapter heading 2903.10 as halogenated derivatives of hydrocarbons.

              A Divisional Assistant Commissioner had passed an order in original dated 16.2.1993 classifying the product in question under sub heading 3823.00 on the grounds that mixture of Fluron-11 and fluron-12 are not separate chemically defined organic compounds.  The audit objected the classification on the grounds that the product are classified under sub-heading NO.2903.10 as on mixing of these two compounds, no chemical change occurs and therefore, the mixtures of these two compounds also needed to be classified under sub-heading No.2903.10.

                        The matter has been examined.  The product in question is a mixture of halogenated derivatives of acyclic hydrocarbons.  Fluron-11 is trichloro-monofluro methane & Fluron-12 is di-chloro-di-fluro methane.  Theses gases are ordinarily used as refrigerants and can also separately be used as blowing agents or propellants.  Heading 29.03 of Central Excise Tariff covers halogenated derivatives of hydrocarbons.  Sub-heading 2903.10 covers chloro-fluro hydrocarbons of methane or ethane.

General note 1 (a) to Chapter 29 reads as under:-

              "Except where the context otherwise requires,  the headings of this chapter apply only to:-

            (a)   Separate chemically defined organic compounds, whether or not containing impurities."

              General note 1(a) to Chapter 29 of HSN indicates that "separate chemically defined compounds" does not necessarily exclude mixtures of "separate chemically defined compounds". For instance, the note specifically  includes "separate chemically defined compounds" dissolved in water, non-aqueous solutions and also compounds (or their solutions) with added stabilizers, anti-dusting agents or coloring substances.  

             Rule 3 (b) of the interpretative rules specifically provides that mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets, shall be classified as if they consisted of the material or components which gives them their essential character.  The subject product consists of a mixture of halogenated hydrocarbons.  Both the hydrocarbons are in themselves "separate chemically defined compounds".  Also there appears to be no material difference in the chemical properties of Fluron-11 and Fluron-12 when kept  separately and mixed together, although some physical properties might change by mixing two gases.  

             Rule 3 (a) of the interpretive rules encourages classification under more specific description rather than a general description.  From this angle also, the subject mixture appears more appropriately classifiable under heading 2903.10.  Accordingly, it is felt that the goods are classifiable under heading 2903.10 and not under sub-heading 3823.00.  Audit objection has also been admitted by the department that the subject goods are classifiable under sub-heading 2903.10.  

             All pending disputes/assessments on the issue may be settled in the light of these guidelines.

@@@@@@