Customs Tribunal rules 'mono potassium phosphate' as fertilizer under Chapter 31, denying duty recovery.

Commissioner of Customs (Import), Nhava Sheva Versus Deepak Agro Solutions Ltd.

Commissioner of Customs (Import), Nhava Sheva Versus Deepak Agro Solutions Ltd. - TMI Issues: Classification of imported goods under the Customs Tariff Act, 1975.

In this case, M/s Deepak Agro Solutions Ltd imported 'mono potassium phosphate' and classified the goods under a specific heading in the Customs Tariff Act. The proper officer issued a notice for reclassification under a different heading, which would affect the duty benefits. The original authority confirmed the duty recovery, but the Commissioner of Customs (Appeals) set aside the demand. The Revenue appealed this decision, arguing that the goods should be classified differently due to specific chemical composition and usage as fertilizers. The Tribunal referenced a previous case to analyze whether the imported goods qualified as 'fertilizers' under Chapter 31 of the Customs Tariff Act. The Tribunal considered the chemical composition, exclusions, and inclusions under different headings to determine the appropriate classification. It was noted that the imported goods were listed in the Fertilizer (Control) Order, 1985, supporting their classification as fertilizers. Based on this analysis, the Tribunal dismissed the Revenue's appeal, concluding that the imported goods should be classified under Chapter 31 and not Chapter 28 of the Customs Tariff Act. The decision was pronounced in open court on 20/02/2018.