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15. The SGS Report stated that the Distillation Range is at 67.2°C and that as per the Kirk-Othmer Encyclopedia, wherein the chemical characteristics of Hexane in Table 10 categorically 2 2009 SCC OnLine CESTAT 5021 provides that the Distillation Range is 68.3°C and the Flash Point at -23°C which is less than 25°C. On comparison between the two, there appears not much difference in the composition of the product. Pure hexane, being derived from the method of fractional distillation of crude petroleum oil and is not possible to completely remove certain impurities such as benzene, polythene, compounds of sulfur, oxygen and chlorine and the same is reflected in the Kirk-Othmer Encyclopedia. Furthermore, CESTAT noted that the purity of Hexane is 63.91% as per the Table in the Encyclopedia and as per the SGS Report, the purity stands recorded at 63.93% and the same matches.

39. The CESTAT has relied upon the Kirk-Othmer Encyclopedia to study the physical and chemical properties of n-Hexane. This Court also deems it appropriate to reproduce and understand certain concepts of n-Hexane for better understanding vis-a-vis classification and tariff determination. The imported product in question as contended by the Respondent-Assessee is pure commercial hexane and the same is manufactured through fractional distillation process petroleum or natural gas. As noted by the encyclopedia and reiterated by the CESTAT, the impurities cannot be reduced to nil but hydrogenation can significantly reduce impurities to make it commercially more viable. Thus, according to Table 10 Hexane A (closest member to n-hexane) has Distillation initial boiling point of Hexane in degree centigrade is 68.2. The table also indicates that the impurities such as benzene and sulfur are less in case of Hexane in the table.

55. On plain reading, it is clear that the tenor of Chapter 27 of the HSN Explanatory Note is confined to petroleum oils and oils obtained from bituminous minerals other than crude oil. As per Kirk-Othmer Encyclopedia for Chemical Technology, Hexane or n-Hexane is obtained through fractional distillation of petroleum. The CESTAT vide the impugned order relied on Table 10 found in the Encyclopedia (supra) and observed that the Distillation was 68.3°C and the flash point of was below 25°C. Further, it is also mentioned that n-Hexane is used as a solvent in industries. The Chemical report submitted by SGS Analytical Report records Distillation Range of n-Hexane is at 67.2°C. Going by the chemical characteristic and mannerisms of n-Hexane and its physical and chemical properties, one will be compelled to accept and admit that the classification ought to be done under Chapter 27 but we are inclined to critically examine Chapter 29.

63. The imported product is obtained by way of fractional distillation of petroleum and no other substance is deliberately left behind or added to the single compound to make it suitable for specific use. As such from Table 10 of the Kirk Othmer Encyclopedia, the impurities in n-Hexane are other isomers of Hexane along with sulfur, chlorine etc. which are of negligent percentage and thus do not suppress the characteristic of n- Hexane and its presence. Thus, while it is contended by the Appellant-Revenue that the imported product suffers from impurities and is not a pure compound, the extent of other compounds, i.e., 2,3 Dimethylbutane (0.05%), 2-Methyl Pentane (3.48%), 3-Methyl Pentane (9.38%), Methyl cyclopentane (19.3%), Cyclohexane (0.78%), Benzene (2.81%) and Dimethyl pentane (0.16%) are the unconverted starting materials, which are not deliberately added during manufacturing process nor deliberately left to render the product suitable for specific use. As per the SGS Chemical Analysis Report, the percentage of n-Hexane is 63.93% with other impurities standing at a lesser rate than n-Hexane. As rightly observed by CESTAT, the percentage of n-Hexane in the SGS Test Report is congruent to the recordings under Table 10 of the Kirk-Othmer Encyclopedia and the same remains undisputed.