2026-VIL-1078-CESTAT-BLR-CU
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CUSTOMS CESTAT Cases

Customs - Classification of Reformate – Appellant imported Reformate classifying it under tariff item 2707 50 00, claiming concessional Customs duty rates. The Commissioner of Customs rejects this classification and reclassifies the product under tariff item 2710 12 19, confirming differential duty demands with interest and imposing a redemption fine - Whether Reformate is classifiable under Tariff item 2707 50 00 as claimed by the appellant-importer or under Tariff item 2710 12 19 as claimed by the Revenue – HELD – Heading 2707 covers not only distillates of coal tar or mineral tar but also similar products obtained by processing of petroleum, as clarified in the HSN Explanatory Notes. The expression "at 250°C" in the tariff description should be interpreted as "by 250°C" to align with the fractional distillation process, wherein a product begins distilling as temperature rises and continues distilling until the specified temperature is reached. The Department itself had interpreted "at 210°C" as "by 210°C" in the Show Cause Notice while classifying under 2710, and therefore cannot be permitted to take a contrary stand. Reformate, containing 80% or more aromatic content, cannot be classified under 2710 as a preparation since all preparations under that heading must contain at least 70% of petroleum oils from specified categories, which would necessarily result in non-aromatic constituents exceeding aromatic constituents. The definition of motor spirit under Supplementary Note (a) requires cumulative satisfaction of two conditions: flash point below 25°C and suitability for use as fuel in spark ignition engines. The expression "admixture with any other substance" refers to substances other than mineral oil, and Reformate added as blend stock in large proportion to gasoline cannot be treated as an admixture - The Supreme Court's dismissal of the Revenue's appeal against the Tribunal's earlier decision in an identical case creates binding precedent by virtue of merger doctrine. Since the products and subject matter are identical, the Revenue cannot maintain two conflicting positions on identical products imported during the disputed periods - The goods are classified under Tariff Item 2707 50 00. The impugned order is set aside, and the appeal is allowed
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