Exemption for imported fertiliser turned on product composition and disclosure of test material, so the matter was remanded.

Eligibility for exemption under Notification No. 50/2017-Cus depended on whether imported boronated calcium nitrate was in substance a water-soluble fertiliser or a fortified fertiliser outside the entry. The department had relied on technical test material to dispute exemption, but that material was not furnished to the importer and its submissions on product character were not properly examined. Because the exemption issue turned on technical composition and a fair appraisal of the factual record, the matter required fresh verification. The impugned order was set aside and the dispute was remanded for reconsideration on merits.

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Issues: Whether the imported goods declared as Boronated Calcium Nitrate were eligible for exemption under Sl. No. 225(I)(b) of Notification No. 50/2017-Cus, and whether the matter required reconsideration because the material relied upon by the department was not furnished and the product character needed verification.

Analysis: The dispute turned on the true nature of the imported fertiliser and whether it answered the description of a water-soluble fertiliser for the purpose of the exemption entry. The record indicated that the department relied upon technical test material to hold the goods to be a fortified fertiliser outside the exemption, while the appellant asserted that such material had not been supplied and its submissions had not been properly considered. Since eligibility under the notification depended on the technical composition and proper appreciation of the factual position, the matter could not be finally decided without reconsideration of those aspects.

Conclusion: The issue was not finally adjudicated on merits and the impugned order was set aside with remand for fresh consideration.

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