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Regarding classification of mixture of hydrocarbons � Fluoron-11 and
Fluoron -12
Circular
No. 574 dated 12th April 2001
A
doubt has been raised as to whether mixture of hydrocarbons-Fluoro-11 &
Fluoron-12 are classifiable under chapter heading 3823.00 or under chapter
heading 2903.10 as halogenated derivatives of hydrocarbons.
2.
A Divisional Assistant Commissioner had passed an order in original dated
16.2.1993 classifying the product in question under sub heading No.3823.00 on
the grounds that mixtures 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.
3.
The matter has been examined. The product in question is a mixture of
halogenated derivatives of acyclic hydrocarbons. Fluoron 11 is
trichloro-monofluro methane & Fluoron 12 is di-chloro-di-fluoro methane.
These gases are ordinarily used as refrigerants and can also separately be used
as blowing agents or propellants. Heading 29.03 of CET covers halogenated
derivatives of hydrocarbons. Sub-heading 2903.10 covers chloro-fluoro
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:
Separate
chemically defined organic compounds, whether or not containing
impurities."
4.
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 colouring substances.
5.
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 two halogenated
hydrocarbons. Both the hydrocarbons are in themselves "separate chemically
defined hydrocarbons". Also there appears to be no material difference in
the chemical properties of Fluoron 11 and Fluoron 12 when kept separately and
mixed together, although some physical properties might change by mixing two
gases.
6.
Rule 3 (a) of the interpretative 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.
7.
The above clarification may be brought to the notice of the lower field
formations and the trade interests may also be suitably advised.
8.
All pending disputes/ assessments on the issue may be settled in the
light of these guidelines.
9.
Receipt of this circular may please be acknowledged.
10.
Hindi version will follow.
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