Circular No. 8/89 Dated 19-1-1989

Classification of Naphthalene under Chapter 27 or Chapter 29 of the CET.- It has been represented that Naphthalene are being classified in the Central Excise Collectorates only under S.H. No. 2707.40 since Naphthalenes are specifically mentioned under the above-mentioned sub-heading. It has been represented that Naphthalenes should be classified under Chapter 29 so that end-users of Naphthalenes could get the Modvat benefits.

2. The matter has been examined. The Board’s attention has been invited to the HSN Explanatory notes under the HSN Heading No. 29.02 (page 336) wherein it has been stated that Naphthalene must have a crystallising point of 79.40C or more for getting classified under heading No. 29.02 of the HSN. Naphthalene of lower purity will merit classification under heading No. 27.07 of the HSN.

3. On the basis of the above-mentioned HSN Explanatory notes, it is hereby clarified that Naphthalene having a crystallising point of 79.4 C or more would be appropriately classifiable under heading No. 29.40 C or more would be appropriately classifiable under heading No. 29.02 of the CET (under heading No. 29.01 of the CET from 28-2-1986 to 9-2-1987) and Naphthalene of lower purity would be appropriately classifiable under heading No. 27.07 of the CET.

4. The above guidelines may be brought to the notice of the lower field formations and the trade interests may also be suitably informed.

5. All pending assessments may be finalised on the above basis.

[F. No. 83/1/89-CX.3]