2026-VIL-289-CESTAT-BLR-CE
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CENTRAL EXCISE CESTAT Cases

Central Excise - Classification of Mixed Xylene - The appellant, a manufacturer of petroleum products, classified its product "Mixed Xylene" under Tariff Entry 29024400 of the Central Excise Tariff Act, 1985 (CETA, 1985) - Department alleged that the constituents of Xylene contained in the Mixed Xylene was less than 82.72%, and hence it should be classified under Tariff Entry 2707 of CETA, 1985, attracting a higher rate of duty - Correct classification of the Mixed Xylene product – Appellant claimed to be classifiable under Chapter sub-heading 29024400 attracting 12% ad valorem, whereas, the Revenue’s allegation is that the product in question is classifiable under Tariff 27073000 attracting 14% ad valorem – HELD – In terms of Harmonized System of Nomenclature (HSN) Explanatory Notes to Heading 2902, to fall under Tariff Entry 29024400, Xylene must contain 95% or more by weight of Xylene isomers, with all isomers being taken together. Since the Mixed Xylene manufactured by the appellant contained less than 95% by weight of Xylene isomers, it could not be classified under Tariff Entry 29024400 – Further, Ethylbenzene cannot be considered an isomer of Xylene, as per the HSN Explanatory Notes and the Tribunal's own precedent in Addisons Paints & Chemicals Ltd. case. Therefore, the classification of the Mixed Xylene under Tariff Entry 2707 30 00 of CETA, 1985 is upheld - The demand for the normal period of limitation with interest is confirmed, but the penalty imposed is set aside as the classification issue was a pure question of law and the appellant had a bona fide belief in its classification - The appeal is partly allowed
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