General rules for the interpretation of this Schedule
Classification of goods in this Schedule shall be governed by the following principles:
1. The titles of Sections, Chapters and Sub-chapters are provided for ease of reference only; for legal
purposes, classification shall be determined according to the terms of the headings and any relative Sections
or Chapter Notes and, provided such headings or notes do not otherwise require, according to the following
provisions.
2. Any reference in a heading—
(a) to an article shall be taken to include a reference to that article incomplete or unfinished,
provided that, as presented, the incomplete or unfinished article has the essential character of the
complete or finished article. It shall also be taken to include a reference to that article complete or
finished (or falling to be classified as complete or finished by virtue of this rule), presented unassembled
or disassembled;
(b) to a material or substance shall be taken to include a reference to mixtures or combinations of
that material or substance with other materials or substances. Any reference to goods of a given material
or substance shall be taken to include a reference to goods consisting wholly or partly of such material
or substance. The classification of goods consisting of more than one material or substance shall be
according to the principles of Rule 3.
3. When by application of clause (b) of Rule 2 or for any other reason, goods are, prima facie,
classifiable under two or more headings, classification shall be effected as follows—
(a) the heading which provides the most specific description shall be preferred to headings
providing a more general description. However, when two or more headings each refer to part only of
the materials or substances contained in mixed or composite goods or to part only of the items in a set
put up for retail sale, those headings are to be regarded as equally specific in relation to those goods,
even if one of them gives a more complete or precise description of the goods;
(b) mixtures, composite goods consisting of different materials or made up of different components,
and goods put up in sets for retail sale, which cannot be classified by reference to clause (a), shall be
classified as if they consisted of the material or component which gives them their essential character,
insofar as this criterion is applicable;
1. Ins. by Act 18 of 2017, s. 12 and Schedule II.
97
(c) when goods cannot be classified by reference to clause (a) or clause (b), they shall be classified
under the heading which occurs last in numerical order among those which equally merit consideration.
4. Goods which cannot be classified in accordance with the above rules shall be classified under the
heading appropriate to the goods to which they are most akin.
5. For legal purposes, the classification of goods in the sub-headings of a heading shall be determined
according to the terms of those sub-headings and any related sub-heading notes and, mutatis mutandis, to
the above rules, on the understanding that only sub-headings at the same level are comparable. For the
purposes of this rule, the relative chapter notes also apply, unless the context otherwise requires.
General Explanatory Notes
1. Where in column (2) of this Schedule, the description of an article or group of articles under a heading
is preceded by “-”, the said article or group of articles shall be taken to be a sub-classification of the article
or group of articles covered by the said heading. Where, however, the description of an article or group of
articles is preceded by “--”, the said article or group of articles shall be taken to be a sub-classification of
the immediately preceding description of the article or group of articles which has “-”. Where the
description of an article or group of articles is preceded by “---” or “----”, the said article or group of articles
shall be taken to be a sub-classification of the immediately preceding description of the article or group of
articles which has “-” or “--”.
2. The abbreviation “%” in column (4) of this Schedule, in relation to the rate of duty, indicates that the
duty on the goods to which the entry relates shall be charged on the basis of the value of the goods fixed,
defined or deemed to be, as the case may be, under or in sub-section (2), read with sub-section (3) of Section
3 or Section 4 or Section 4-A of the Central Excise Act, 1944 (1 of 1944), the duty being equal to such
percentage of the value as is indicated in that column.
Additional Notes
In this Schedule,—
(1) The expression,—
(a) “heading”, in respect of goods, means a description in list of tariff provisions accompanied
by a four digit number and includes all sub-headings of tariff items the first four digits of which
correspond to that number;
(b) “sub-heading”, in respect of goods, means a description in the list of tariff provisions
accompanied by a six digit number and includes all tariff items the first six digits of which
correspond to that number;
98
(c) “tariff item” means a description of goods in the list of tariff provisions accompanying either
eight-digit number and the rate of the duty of excise, or eight digit number with blank in the column
of the rate of duty;
(2) The list of tariff provisions is divided into sections, chapters and sub-chapters;
(3) In column (3), the standard unit of quantity is specified for each tariff item to facilitate the
collection, comparison and analysis of trade statistics;
(4) “…..” against any goods denotes that Central Excise Duty under this Schedule is not leviable
on such goods.
List of Abbreviations used
Abbreviations For
1. Kg. Kilogram
2. Tu Thousand in number
Section IV
TOBACCO AND MANUFACTURED TOBACCO SUBSTITUTES
NOTE
In this Section, the expression “unit container” means a container, whether large or small (for example,
tin, can, box, jar, bottle, bag or carton, drum, barrel or canister) designed to hold a predetermined quantity
or number.
CHAPTER 24
TOBACCO AND MANUFACTURED TOBACCO SUBSTITUTES
NOTES
1. In this Chapter, “brand name” means a brand name, whether registered or not, that is to say, a name
or a mark, such as a symbol, monogram, label, signature invented words or any writing which is used in
relation to a product, for the purpose of indicating, or so as to indicate, a connection in the course of trade
between the product and some person using such name or mark with or without any indication of the identity
of that person.
99
2. In relation to products of Heading 2401 or 2402 or 2403, labelling or relabelling of containers or
repacking from bulk packs to retail packs or the adoption of any other treatment to render the product
marketable to the consumer, shall amount to “manufacture”.
3. In this Chapter, “Pan masala containing tobacco”, commonly known as “gutkha” or by any other
name, included in Tariff Item 2403 99 90, means any preparation containing betelnuts and tobacco and any
one or more of the following ingredients, namely—
(i) lime; and
(ii) kattha (catechu),
whether or not containing any other ingredients, such as cardamom, copra and menthol.
SUB-HEADING NOTE
For the purposes of sub-heading 2403 11, the expression “water pipe tobacco” means tobacco intended
for smoking in a water pipe and which consists of a mixture of tobacco and glycerol, whether or not
containing aromatic oils and extracts, molasses or sugar, and whether or not flavoured with fruit. However,
tobacco-free products intended for smoking in a water pipe are excluded from this sub-heading.
SUPPLEMENTRY NOTES
For the purposes of this Chapter:
(1) “tobacco” means any form of tobacco, whether cured or uncured and whether manufactured or
not, and includes the leaf, stalks and stems of the tobacco plant, but does not include any part of a
tobacco plant while still attached to the earth.
(2) “cut-tobacco” means the prepared or processed cut-to-size tobacco which is generally blended
or moisturised to a desired extent for use in the manufacture of machine rolled cigarettes.
(3) “smoking mixtures for pipes and cigarettes” of sub-heading 2403 10 does not cover “ Gudaku”.
Tariff
item
Description of goods Unit Rate of Duty
(1) (2) (3) (4)
2401 Unmanufactured Tobacco; Tobacco Refuse
2401 10 -Tobacco, not stemmed or stripped:
2401 10
10
-
-
-
Flue cured virginia tobacco Kg. 64%
100
Tariff
item
Description of goods Unit Rate of Duty
(1) (2) (3) (4)
2401 10
20
-
-
-
Sun cured country (natu) tobacco Kg. 64%
2401 10
30
-
-
-
Sun cured virginia tobacco Kg. 64%
2401 10
40
-
-
-
Burley tobacco Kg. 64%
2401 10
50
-
-
-
Tobacco for manufacture of biris, not stemmed Kg. 64%
2401 10
60
-
-
-
Tobacco for manufacture of chewing tobacco Kg. 64%
2401 10
70
-
-
-
Tobacco for manufacture of cigar and cheroot Kg. 64%
2401 10
80
-
-
-
Tobacco for manufacture of hookah tobacco Kg. 64%
2401 10
90
-
-
-
Other Kg. 64%
2401 20 -Tobacco, partly or wholly stemmed or stripped:
2401 20
10
-
-
-
Flue cured virginia tobacco Kg. 64%
2401 20
20
-
-
-
Sun cured country (natu) tobacco Kg. 64%
101
Tariff
item
Description of goods Unit Rate of Duty
(1) (2) (3) (4)
2401 20
30
-
-
-
Sun cured virginia tobacco Kg. 64%
2401 20
40
-
-
-
Burley tobacco Kg. 64%
2401 20
50
-
-
-
Tobacco for manufacture of biris Kg. 64%
2401 20
60
-
-
-
Tobacco for manufacture of chewing tobacco Kg. 64%
2401 20
70
-
-
-
Tobacco for manufacture of cigar and cheroot Kg. 64%
2401 20
80
-
-
-
Tobacco for manufacture of hookah tobacco Kg. 64%
2401 20
90
-
-
-
Other Kg. 64%
2401 30
00
-Tobacco refuse Kg. 50%
2402 Cigars, cheroots, cigarillos and cigarettes, of tobacco or of tobacco
substitutes
2402 10 -Cigars, cheroots and cigarillos, containing tobacco:
2402 10
10
-
-
-
Cigar and cheroots Tu 12.5% or
Rs 4006 per
thousand,
102
Tariff
item
Description of goods Unit Rate of Duty
(1) (2) (3) (4)
whichever is
higher
2402 10
20
-
-
-
Cigarillos Tu 12.5% or
Rs 4006 per
thousand,
whichever is
higher
2402 20 -Cigarettes, containing tobacco:
2402 20
10
-
-
-
Other than filter cigarettes, of length not exceeding 65 millimetres Tu Rs 1280 per
thousand
2402 20
20
-
-
-
Other than filter cigarettes, of length exceeding 65 millimetres but not
exceeding 70 millimetres
Tu Rs 2335 per
thousand
2402 20
30
-
-
-
Filter cigarettes of length (including the length of the filter, the length
of filter being 11 millimetres or its actual length, whichever is more)
not exceeding 65 millimetres
Tu Rs 1280 per
thousand
2402 20
40
-
-
-
Filter cigarettes of length (including the length of the filter, the length
of filter being 11 millimetres or its actual length, whichever is more)
exceeding 65 millimetres but not exceeding 70 millimetres
Tu Rs 1740 per
thousand
2402 20
50
-
-
-
Filter cigarettes of length (including the length of the filter, the length
of filter being 11 millimetres or its actual length, whichever is more)
exceeding 70 millimetres but not exceeding 75 millimetres
Tu Rs 2335 per
thousand
2402 20
90
-
-
-
Other Tu Rs 3375 per
thousand
2402 90 -Other:
2402 90
10
-
-
-
Cigarettes of tobacco substitutes Tu Rs 3375 per
thousand
103
Tariff
item
Description of goods Unit Rate of Duty
(1) (2) (3) (4)
2402 90
20
-
-
-
Cigarillos of tobacco substitutes Tu 12.5% or Rs 4006
per thousand
whichever is
higher
2402 90
90
-
-
-
Other Tu 12.5% or Rs 4006
per thousand
whichever is
higher
2403 Other manufactured tobacco and manufactured tobacco
substitutes; “Homogenised” or “Reconstituted” tobacco; Tobacco
extracts and essences
- Smoking tobacco, whether or not containing tobacco substitute in any
proportion;
2403 11 -
-
Water pipe tobacco specified in Sub-heading Note to this Chapter:
2403 11
10
-
-
-
Hukkah or gudaku tobacco Kg. 60%
2403 11
90
-
-
-
Other Kg. 60%
2403 19 -
-
Other
2403 19
10
-
-
-
Smoking mixtures for pipes and cigarettes Kg. 360%
-
-
-
Biris:
2403 19
21
-
-
-
-
Other than paper rolled biris, manufactured without the aid of machine Tu Rs 12 per
thousand
104
Tariff
item
Description of goods Unit Rate of Duty
(1) (2) (3) (4)
2403 19
29
-
-
-
-
Other Tu Rs 80 per
thousand
2403 19
90
-
-
-
Other Kg. 40%
-Other:
2403 91
00
-
-
“Homogenised” or “reconstituted” tobacco Kg. 60%
2403 99 -
-
Other:
2403 99
10
-
-
-
Chewing tobacco Kg. 81%
2403 99
20
-
-
-
Preparations containing chewing tobacco Kg. 60%
2403 99
30
-
-
-
Jarda scented tobacco Kg. 81%
2403 99
40
-
-
-
Snuff Kg. 60%
2403 99
50
-
-
-
Preparations containing snuff Kg. 60%
2403 99
60
-
-
-
Tobacco extracts and essence Kg. 60%
105
Tariff
item
Description of goods Unit Rate of Duty
(1) (2) (3) (4)
2403 99
70
-
-
-
Cuttobacco Kg. Rs 70 per Kg.
2403 99
90
-
-
-
Other Kg. 81%
Section V
MINERAL PRODUCTS
Chapter 27
MINERAL FUELS, MINERAL OILS AND PRODUCTS OF THEIR DISTILLATION; BITUMINOUS
SUBSTANCES; MINERAL WAXES
Notes
1. References in Heading 2710 to “petroleum oils and oils obtained from bituminous minerals” include
not only petroleum oils and oils obtained from bituminous minerals, but also similar oils, as well as those
consisting mainly of mixed unsaturated hydrocarbons, obtained by any process, provided that the weight
of the non-aromatic constituents exceeds that of the aromatic constituents.
However, the references do not include liquid synthetic polyolefins of which less than 60% by volume
distils at 300°C, after conversion to 1013 millibars when a reduced pressure distillation method is used.
2. In relation to lubricating oils and lubricating preparations of Heading 2710, labelling or relabelling
of containers or repacking from bulk packs to retail packs or the adoption of any other treatment to render
the product marketable to the consumer, shall amount to “manufacture”.
3. In relation to natural gas falling under Heading 2711, the process of compression of natural gas (even
if it does not involve liquefaction), for the purpose of marketing it as Compressed Natural Gas (CNG), for
use as a fuel or for any other purpose, shall amount to “manufacture”.
Sub-Heading Note
For the purposes of sub-heading 2710 12, “light oils and preparations” are those of which 90% or more
by volume (including losses) distil at 210°C (ASTM D 86 method).
106
Supplementary Notes
In this Chapter, the following expressions have the meanings hereby assigned to them—
(1) “motor spirit” means any hydrocarbon oil (excluding crude mineral oil) which has its flash point
below 25°C and which either by itself or in admixture with any other substance, is suitable for use as
fuel in spark ignition engines. “Special boiling point spirits (Tariff Items 2710 12 11, 2710 12 12 and
2710 12 13)” means light oils, as defined in sub-heading Note 4, not containing any anti-knock
preparations, and with a difference of not more than 60°C between the temperatures at which 5% and
90% by volume (including losses) distil;
(2) “natural gasoline liquid (NGL)” is a low-boiling liquid petroleum product extracted from
Natural Gas;
(3) “aviation turbine fuel (ATF)” means any hydrocarbon oil conforming to the Indian Standards
Specification of Bureau of Indian Standards IS : 1571 : 1992 : 2000;
(4) “high speed diesel (HSD)” means any hydrocarbon oil conforming to the Indian Standards
Specification of Bureau of Indian Standards IS : 1460 : 2000;
(5) for the purposes of these additional notes, the tests prescribed have the meaning hereby assigned
to them—
(a) “Flash Point” shall be determined in accordance with the test prescribed in this behalf in
the rules made under the Petroleum Act, 1934 (30 of 1934);
(b) “Smoke Point” shall be determined in the apparatus known as the Smoke Point Lamp in the
manner indicated in the Indian Standards Institution Specification IS : 1448 (p. 31)-1967 for the
time being in force;
(c) “Final Boiling Point” shall be determined in the manner indicated in the Indian Standards
Institution Specification IS : 1448 (p. 18)-1967 for the time being in force;
(d) “Carbon Residue” shall be determined in the apparatus known as Ramsbottom Carbon
Residue Apparatus in the manner indicated in the Indian Standards Institution Specification IS :
1448 (p. 8)-1967 for the time being in force;
(e) “Colour Comparison Test” shall be done in the following manner, namely—
(i) first prepare a five per cent weight by volume solution of Potassium Iodine (analytical
reagent quality) in distilled water;
(ii) to this, add Iodine (analytical reagent quality) in requisite amount to prepare an exactly
0.04 normal Iodine solution;
(iii) thereafter, compare the colour of the mineral oil under test with the Iodine solution so
prepared.
107
Tariff
Item
Description of goods Unit Rate of
Duty
(1) (2) (3) (4)
2709 Petroleum oils and oils obtained from bituminous minerals, crude. Kg. …..
2709
10 00
- Petroleum oils and oils obtained from bituminous minerals Kg. …..
2709
20 00
- Petroleum crude Nil
2710 Petroleum oils and oils obtained from bituminous minerals, other than
crude; preparations not elsewhere specified or included, containing by
weight 70% or more of petroleum oils or of oils obtained from bituminous
minerals, these oils being the basic constituents of the preparations; waste
oils
- Petroleum oils and oils obtained from bituminous minerals (other than crude)
and preparations not elsewhere specified or included, containing by weight 70%
or more of petroleum oils or of oils obtained from bituminous minerals, these
oils being the basic constituents of the preparations, other than those containing
biodiesel and other than waste oil
2710
12
-
-
Light oils and preparations:
-
-
-
Motor spirit (Commonly known as petrol):
2710
12 11
-
-
-
-
Special boiling point spirits (other than benzene, toluol) with nominal boiling
point range 55-115 °C
Kg. 14%+Rs
15.00 per
litre
2710
12 12
-
-
-
-
Special boiling point spirits (other than benzene, toluene and toluol) with
nominal boiling point range 63-70 °C
Kg. 14%+Rs
15.00 per
litre
2710
12 13
-
-
-
-
Other Special boiling points spirits (other than benzene, benzol, toluene and
toluol)
Kg. 14%+Rs
15.00 per
litre
108
Tariff
Item
Description of goods Unit Rate of
Duty
(1) (2) (3) (4)
2710
12 19
-
-
-
-
Other Kg. 14%+Rs
15.00 per
litre
2710
12 20
-
-
-
Natural Gasoline Liquid Kg. 14%+Rs
15.00 per
litre
1
[2710
12 39
-
-
-
Solvent 145/205 Kg. …
-
-
-
Motor Gasoline conforming to standard IS 2796, IS 17021, IS 17586 or IS
17076:
2710
12 41
-
-
-
Motor Gasoline conforming to standard IS 2796 Kg. 14%+Rs
15.00 per
litre
2710
12 42
-
-
-
E 20 Fuel conforming to standard IS 17021 Kg. 14%+Rs
15.00 per
litre
2710
12 43
-
-
-
E 12 Fuel conforming to standard IS 17586 Kg. 14%+Rs
15.00 per
litre
2710
12 44
-
-
-
E 15 Fuel conforming to standard IS 17586 Kg. 14%+Rs
15.00 per
litre
2710
12 49
-
-
-
M 15 Fuel conforming to standard IS 17076 Kg. 14%+Rs
15.00 per
litre]
2710
12 90
-
-
-
Other Kg. 14%+Rs
15.00 per
litre
1. Subs. by Act 6 of 2022, S. 99 and Sch. IV (w.e.f. 1-5-2022).
109
Tariff
Item
Description of goods Unit Rate of
Duty
(1) (2) (3) (4)
2710
19
-
-
Other:
2710
19 10
-
-
-
Superior Kerosene Oil (SKO) Kg. …..
2710
19 20
-
-
-
Aviation Turbine Fuel (ATF) Kg. 14%
2710
19 30
-
-
-
High Speed Diesel (HSD) Kg. 14%+Rs
15.00 per
litre
2710
19 40
-
-
-
Light Diesel Oil (LDO) Kg. …..
2710
19 50
-
-
-
Fuel oil Kg. …..
2710
19 60
-
-
-
Base oil Kg. …..
2710
19 70
-
-
-
Jute batching oil and textile oil Kg. …..
2710
19 80
-
-
-
Lubricating oil Kg. …..
2710
19 90
-
-
-
Other Kg. …..
- Waste oil: …..
2710
20 00
Petroleum oils and oils obtained from bituminous minerals (other than crude)
and preparations not elsewhere specified or included, containing by weight 70%
Kg. …..
110
Tariff
Item
Description of goods Unit Rate of
Duty
(1) (2) (3) (4)
or more of petroleum oils or of oil obtained from bituminous minerals, these oils
being the basic constituents of the preparations, containing biodiesel, other than
waste oils
2710
91 00
-
-
Containing polychlorinated biphenyls (PCBs), polychlorinated terphenyls
(PCTs) or polybrominated biphenyls (PBBs)
Kg. …..
2710
99 00
-
-
Other Kg. …..
2711 Petroleum gases and other gaseous hydrocarbons
- Liquefied:
2711
11 00
-
-
Natural gas Kg. 14%
2711
12 00
-
-
Propane Kg. …..
2711
13 00
-
-
Butane Kg. …..
2711
14 00
-
-
Ethylene, propylene, butylene and butadiene Kg. …..
2711
19 00
-
-
Other Kg. …..
- In gaseous state:
2711
21 00
-
-
Natural gas Kg. 14%
2711
29 00
-
-
Other Kg. …