2026-VIL-48-SC-CU
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CUSTOMS Supreme Court Cases

Customs - Tariff Classification of n-Hexane - Petroleum Product or Organic Chemical Compound – Respondent-assessee imported n-Hexane classifying is under Customs Tariff Heading 2901.10 and Central Excise Tariff Heading 2901.90 as a saturated acyclic hydrocarbon existing as a separate chemical compound - Revenue issued notice contending that the product should be classified under Customs Tariff Heading 2710.00 and Central Excise Tariff Heading 2710.12 as petroleum oil/motor spirit - Whether n-Hexane should be classified as a petroleum oil under Chapter 27 or as a pure hydrocarbon under Chapter 29 of the Customs and Central Excise Tariff Acts – HELD - The n-Hexane is correctly classifiable under Chapter 29 (Customs Tariff Heading 2901.10 and Central Excise Tariff Heading 2901.90) as a separate chemically defined organic compound. The burden of proof rests upon the Appellate-Revenue to demonstrate classification under Chapter 27, and the revenue has failed to discharge this burden. Revenue has not provided cogent evidence that the imported product is used as motor spirit suitable for spark ignition engines, which requires satisfaction of three conditions: the product must be a hydrocarbon oil, possess a flash point below 25°C, and be suitable for use as fuel in spark ignition engines - The n-Hexane, being a saturated acyclic hydrocarbon and possessing a definitive linear structural diagram distinct from its isomers, satisfies the definition of a separately chemically defined compound under Chapter 29 of the HSN Notes. The presence of impurities such as other hexane isomers and sulfur compounds does not alter this classification as these constitute unconverted starting materials arising from the fractional distillation manufacturing process and are not deliberately added or left behind to make the product suitable for specific use – Further, the DGFT Policy Circular dated 14.07.2004 authoritatively clarified that imports of hexane fall under Chapter 29 of the Indian Trade Classification. Applying Rule 3(a) of the General Rules of Interpretation, the Chapter 29 provides a more specific description for n-Hexane as a separately defined chemical compound compared to the general classification under Chapter 27, thereby requiring the application of the specific heading – The impugned CESTAT order upholding classification under Chapter 29 is affirmed and the Revenue appeal is dismissed
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