Micronutrient fertilizer classification under Heading 3105 upheld prima facie, securing waiver of pre-deposit and stay of recovery.

Imported zinc-EDTA chelate was held prima facie classifiable as a micronutrient fertilizer under Heading 3105, because the record showed it was used as a fertilizer and contained nitrogen as an essential fertilising constituent under Chapter 31 Note 6. Although the product was described as a separate chemically defined compound that could also attract Chapter 29, the fertilizer use and composition supported the appellants' classification claim for interim relief. On that basis, the product was treated as falling under Heading 3105 for the limited purpose of the stay applications, including the bulk product after repacking and relabelling, and waiver of pre-deposit with stay of recovery was granted.

---

---

Issues: Whether the imported zinc-EDTA chelate was, for the purpose of interim relief, classifiable as a micronutrient fertilizer under Heading 3105 rather than under Heading 2922, and whether the appellants were entitled to waiver of pre-deposit and stay of recovery.

Analysis: The product was described as a separate chemically defined compound with a definite molecular structure, which could prima facie attract Chapter 29. However, the material on record, including the laboratory report and chemical literature, indicated that it was used as a micronutrient fertilizer and that nitrogen was present as an essential constituent. Note 6 to Chapter 31 applies Heading 3105 to products of a kind used as fertilizers containing, as an essential constituent, at least one fertilizing element such as nitrogen, phosphorus or potassium. On that basis, the appellants' classification claim under Heading 3105 was found to be prima facie sustainable. As the same classification basis governed the connected excise appeals, the product in bulk was also treated as remaining under Heading 3105 even after repacking and relabelling, for the limited purpose of interim relief.

Conclusion: The classification claim under Heading 3105 was accepted prima facie, and waiver of pre-deposit together with stay of recovery was granted in favour of the appellants.

---