Micronutrient fertilizers classified as inorganic chemicals under HSN 28332990 instead of fertilizers under Chapter 3105

The AAR, Andhra Pradesh ruled that micronutrient fertilizers (Mangala Borosan and Mangala G1) should be classified under HSN 28332990 as inorganic chemicals rather than under Chapter 3105 as fertilizers. The Authority determined that despite being characterized as micronutrient blends, the products unequivocally comprise inorganic chemicals, specifically sulphates. The classification was based on meticulous examination of the product's composition and relevant literature, emphasizing the predominantly sulphate-centric constitution which aligns with the regulatory framework for inorganic chemicals rather than fertilizers.

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Issues Involved:
1. Classification of products Mangala Borosan and Mangala G1 under Chapter Heading 3105 as Fertilisers.
2. Appropriate classification if not under Chapter Heading 3105.

Summary:

Issue 1: Classification under Chapter Heading 3105 as Fertilisers
The applicant, engaged in manufacturing, trading, and marketing of various agricultural products, sought to classify Mangala Borosan and Mangala G1 under Chapter Heading 3105 as Fertilisers. They argued that these products meet the definition of "Fertiliser" under Section 2(h) of the Fertiliser (Control) Order, 1985, and should be classified under Chapter 31 of the Customs Tariff Act, 1975. The applicant emphasized that their products are specifically designed to improve plant growth and are understood in the market as "Fertilisers." They also referenced various tribunal decisions supporting the classification of micronutrient fertilisers under Chapter 31.

Issue 2: Appropriate Classification if not under Chapter Heading 3105
Upon examination, the Authority concluded that the products do not fall under the category of Micronutrients as defined in the Fertiliser Control Order, 1985. Instead, the products were found to be composed of a fusion of inorganic chemicals, primarily sulphates. Therefore, the products were classified under Tariff Item 28332990, which pertains to inorganic chemicals, specifically sulphates. This classification aligns with the product's composition and ensures compliance with regulatory standards.

Ruling:
1. Question: Whether the products referred supra i.e., Mangala Borosan and Mangala G1 are classifiable under Chapter Heading 3105 as FertilisersRs.
Answer: NO

2. Question: If the answer to the question no. 1 is in negative, what would be the appropriate classification of the said micronutrient FertilisersRs.
Answer: 2833 29 90 (Under Schedule III - 18% (CGST-9% and SGST-9% or IGST-18%)).

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