Fertilizer classification under Chapter 31 applies where micronutrient products contain an essential fertilizing element.

Micronutrient products used as fertilizers fall within Chapter 31 when Chapter Note 6 is satisfied, meaning the product contains at least one fertilizing element-nitrogen, phosphorus or potassium-as an essential constituent. On that basis, the Tribunal treated Heading 3105 as covering the goods as other fertilizers and rejected classification as plant growth regulators under Chapter 38. The settled view applied the product composition and the relevant CBEC circular to confirm that the presence of a fertilizing element in a mixed formulation does not prevent classification as a fertilizer.

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Issues: Whether the impugned micronutrient products were classifiable as fertilizers under Chapter 31 of the Central Excise Tariff Act, 1985 or as plant growth regulators under Chapter 38.

Analysis: The dispute turned on Chapter Note 6 to Chapter 31, which restricts Heading 3105 to products used as fertilizers and containing, as an essential constituent, at least one fertilizing element, namely nitrogen, phosphorus or potassium. The earlier Tribunal decision concerning the same appellant and the same product composition had already examined the issue, considered the chemical composition, the CBEC circular dated 06.04.2016, and the Revenue's contention that the fertilizing elements were not essential. That decision held that the presence of at least one of the fertilizing elements was sufficient and that the alternative classification as plant growth regulators was not sustainable. The present appeal followed that settled view.

Conclusion: The impugned goods were held to be fertilizers classifiable under Chapter 31 and not plant growth regulators under Chapter 38, in favour of the assessee.

Ratio Decidendi: Where a product used as a fertilizer contains at least one of nitrogen, phosphorus or potassium as an essential constituent, it falls within Heading 3105 as an other fertilizer and cannot be classified as a plant growth regulator merely because the fertilizing element is present in a mixed formulation.

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