Circular No. 7/88-CX.3 Dated 4-5-1988

Central Excise - Classification of Liquid Paraffin I.P. – Regarding.- A doubt has been expressed as to whether ‘Liquid Paraffin I.P. in bulk form would be classifiable under Chapter 27 or under Chapter 29 as a ‘separate chemically defined compound’ or under Chapter 30 of the Schedule to the Central Excise Tariff Act, 1985.

2. The matter was discussed in the meeting of Collectors of Central Excise, West Zone held at Bombay on the 25th and 26th March, 1988.

3. The Conference was of the view that Liquid Paraffin I.P. could not fall in Chapter 29 as it was not a well-defined compound but depending on whether it is put up in measured doses or in packing for sale or for use in hospitals it will be appropriately classifiable under Chapter 30, otherwise under Chapter 27 of the Schedule to the Central Excise Tariff Act, 1985.

4. The Board agrees with the above views of the Conference and accordingly holds that liquid Paraffin I.P. in bulk form would fall under sub-heading No. 2710.99 but when the same is put up in measured doses or in packings for retail sale or for use in hospitals, it would be appropriately classifiable under Chapter 30, Heading No. 30.03 of the CET.

5. Trade interests may be suitably advised.

6. All pending assessments may be finalised in the light of the above guidelines.

[F. No. 89/2/88-CX.3]