Fertilizer classification turns on product composition and use, with potassium nitrate grade product placed under Chapter 31.

Potassium nitrate grade 13-0-45 prilled imported for manurial use was held to fall under Chapter 31 as a mineral or chemical fertilizer, not under Heading 2834.21 as potassium nitrate. Chapter 28 was applied only to separate chemically defined compounds, and the presence of sodium and chlorine, together with procurement, invoicing and certification as a fertilizer grade product, showed the goods were not potassium nitrate simpliciter. Later notifications concerning potassium nitrate in fertilizer form supported the same classification approach, and consequential refund relief followed.

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Issues: Whether Potassium Nitrate Grade 13-0-45 Prilled imported for use as fertilizer was classifiable under Chapter 31 as fertilizer or under Heading 2834.21 as potassium nitrate.

Analysis: Chapter 28 applies to separate chemically defined compounds, whereas Chapter 31 covers mineral or chemical fertilizers. The imported goods were found to contain sodium and chlorine in addition to potassium nitrate, and the material on record showed that they were procured, invoiced and certified as fertilizer grade product for manurial use. On that basis, the goods were treated as not being potassium nitrate simpliciter as a separate chemically defined compound, but as fertilizer fit for classification under Chapter 31. The later Government notifications dealing with potassium nitrate in a form indicative of use for manurial purpose also supported this classification approach.

Conclusion: The goods were classifiable under Chapter 31 and not under Heading 2834.21, and the appellant was entitled to the refund and consequential relief.

Ratio Decidendi: A product described as potassium nitrate will fall outside Chapter 28 and within Chapter 31 where the evidence shows that it is not a separate chemically defined compound but a fertilizer grade product with additives or constituents rendering it suitable for manurial use.

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