Case Law Details
In re Pairan Pyrolysis Pvt. Ltd. (CAAR Mumbai)
CAAR held that the tyre pyrolysis oil and recovered carbon black merit classification under subheadings 27101990 and 28030010 respectively, of the first schedule of the Customs Tariff Act, 1975. These items are not covered under the negative list of ISFTA. The goods are exempted from basic customs duty under ISFTA. On the issue of free trade (importability) from Sri Lanka, no advance rulings is being pronounced.
FULL TEXT OF ORDER OF CUSTOMS AUTHORITY OF ADVANCE RULING, MUMBAI
M/s Pairan Pyrolysis Pvt. Ltd. filed an application seeking advance rulings on the classification of tyre pyrolysis oil and tyre pyrolysis recovered carbon; clarification on whether these products are covered under the negative list of the India-Sri Lanka Free Trade Agreement (ISFTA); and whether the impugned goods are allowed for free trade with exempted customs duty.
2. The applicant is a recycler of the end of life tyres using the pyrolysis process. Tyre pyrolysis oil (TPO) and recycled tyre carbon black are recovered under this procedure. It is submitted that they intend to shift the recycling plant to Sri Lanka and import the TPO and carbon black from the plant in Sri Lanka. Central Pollution Control Board (CPCB), New Delhi along with NEERI, Nagpur and IIT, New Delhi carried out a study on the adequacy of various tyre pyrolysis plants, including the plant of the applicant at Erode, to meet environmental concerns. This report, herein referred to as the CPCB report, has been cited by the applicant for explaining the processes involved in the tyre pyrolysis plant and the properties of the recovered goods. As per the CPCB report, the tyre pyrolysis process is used for the recovery of pyrolysis oil, carbon black and steel from waste tyres/end of life tyres (ELTs). A typical waste tyre /end of life tyre (ELT) consists of about 60 % volatile organics, 30 % fixed carbon and 10 % ash by weight. Pyrolysis is a chemical reaction that involves the molecular breakdown of larger molecules into smaller molecules by heating in absence of air. Pyrolysis is also known as thermal cracking, thermolysis, depolymerization, etc. Pyrolysis of tyres & rubber products results in pyrolysis oil, pyrolysis gas (pyro gas), carbon black & steel. The quantity and quality of each product depend on the type of waste tyre including process variables, temperature, pressure, and residence time. The process of tyre pyrolysis includes feeding scrap tyres into a reactor where they are heated in the absence of oxygen for the breakdown of long-chain hydrocarbons (polymers). The reactor is further connected with a series of condensers where the condensation of gases produces pyrolysis oil. The lighter fraction of the gases (uncondensed pyro gas) produced in the process is used as fuel for heating of reactor. The excess uncondensed pyro gas is either flared up or re-circulated for reactor heating or in some cases stored for subsequent usage. After the completion of the process, the carbon black & steel wire left inside the reactor is taken out.
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