TaxTMI 
TaxTMI 
2010 (2) TMI 353
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....s before it. The said appeals were filed against the order dated 8-9-2008 passed by the Assistant Commissioner, Patiala. The adjudicating authority by its order had confirmed the demand to the tune of Rs. 4,71,506/- along with interest thereon in relation to the two show cause notices dated 29-6-2007 and 24-6-2008 for the period from 1-7-2006 to 31-5-2007 and 1-6-2007 to 31-3-2008 respectively. 4. The appellants are engaged in the manufacture of Zinc Sulphate for which they had procured for the relevant period Sulphuric Acid at nil rate of duty claiming exemption under Notification No. 04/2006-C.E., dated 1-3-2006. While contending that the exemption contained under the said Notification could be claimed in relation to the Sulphuric Acid only if the same is used in the manufacture of fertilizers classifiable under Chapter 31, whereas the appellants having used the same for manufacture of Zinc Sulphate classifiable under Chapter 28, had illegally claimed exemption under the said Notification and that, therefore, they were liable to pay the excise duty on Sulphuric Acid procured by them without payment of duty, the said two show cause notices came to be issued. The matter was cont....
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....onium Chloride and Manganese Sulphate since the year 1996 under Notification No. 08/96-C.E. According to the learned DR, though the word 'fertilizer' is found to have been used in relation to different entries, the explanation clause is found exclusively appended to entry relating to Ammonium Chloride and Manganese Sulphate in every Notification which has been issued since 1996 onwards. He further submitted that, the term 'fertilizer' is not only found to have been used in the entries preceding the entry relating to Ammonium Chloride and Manganese Sulphate, but also in the entries subsequent thereto. Being so, the contention that the explanation should be construed to have been referring to the term 'fertilizer' in all the preceding entries should not be accepted. If it is accepted, as applicable to preceding entries, there is no justification to exclude its applicability for the entries following the said entry. However, the explanation being exclusively appended to the Ammonium Chloride and Manganese Sulphate, there is no justification to apply the same to other entries. 8. We are mainly concerned with the point as to whether the explanation regarding the term 'fertilizers' ap....
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....28 and described against entry No. 35, otherwise there is no reason to use the expression 'this' with reference to exemption in relation to which the explanation has been incorporated. It is also pertinent to note, as rightly pointed out by the learned DR, that the explanation is clearly appended to the entry No. 35, while the word 'fertilizer' is also found used in other entries preceding the entry No. 35 as well as following the entry No. 35. If the explanation clause was to relate to such expression used in all the entries, certainly the same would have been placed at the end of the Notification. The placement of explanation in the Notification and use of the terminology like "this exemption" clearly indicates that, the explanation relating the word 'fertilizer' in the said clause relates to the exemption available under the entry No. 35 alone. It relates to the single entry and not the multiple entries in the said Notification. 12. The contention of the learned advocate for the appellants, however, is that, the history relating to the exemption granted to similar products under Notifications preceding the Notification in question would reveal that the said explanation applie....
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....his entry is similar to the entry found in the Notification in question. Similar entry continued in Notification Nos. 06/2000-C.E., 03/2001-C.E., 06/2002-C.E. and lastly in the Notification in question. The explanation clause clearly discloses its exclusive applicability to the entry No. 35 in the Notification in question, it is difficult to accept the contention on behalf of the appellants that the same would relate to all the entries wherever the term 'fertilizer' has been used in the said Notifications. This clause nowhere discloses to be referred to all the entries in the Notification. It does not disclose to be referring to the entire Notification. There are other entries in the form of explanation appended to entry Nos. 15, 24, 28 and 29; as against this, whenever the intention is to apply the explanation clause to all the entries, the same has been provided with the expression "for the purpose of this Notification" just as is provided under entry Nos. 43 and 59 of the said Notification. This differentiation in the phraseology in relation to the explanation clauses in the said Notification also discloses that the expression therein like "this exemption" in the explanation cla....
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....h, enhance yield, improve quality of facilitate harvesting, etc. Plant hormones are one type of plant growth regulators. Synthetic organic chemicals are also used as plant growth regulators. 5. Fertilizers are materials added to soil and, sometimes to foliage to supply nutrients to sustain plants and promote their abundant and fruitful growth. The elements that constitute these plant foods are divided into three classes - (1) Primary-Nitrogen (N), Phsphorous (P) and Potassium (K), (2) Secondary - Calcium (Ca), Magnesium (Mg) and Sulphur (S) and (3) Minor or so called micronutrients - Iron (Fe), Manganese (Mn), copper (cu), Zinc (Zn), Boron (B) and Molybdenum (Mo). However, for the purpose of classification of micronutrients as 'Other Fertilizers' in Heading 31.05 CET, the scope of the term 'Other Fertilizers' has to be determined in the light of Note 6 of Chapter 31. Further, the specific exclusion of separate chemically defined compounds as laid down in the HSN Explanatory Notes to Heading 3105.90, must also be borne in mind. If, the micronutrient is a separate chemically defined compound, it will be classifiable under Chapter 28/29. If not so, and if in accordance with Note 8 ....
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....t so as to enhance yield, improve quality or facilitate harvesting etc. Micronutrients are admittedly used albeit in trace quantities to accelerate the growth and enhance the yield and hence these would be covered by "plant growth regulators." 8. As seen from the Kirk-Othmer Encyclopedia of Chemical Technology - Third Edition "The use of plant growth regulators may be the cause of the most important quantitative yields yet achieved in agriculture. The principal aim of the agrochemical industry has been to provide chemicals that control the competition to the crop, i.e. the weeds, insects, fungi and nematodes that reduce yield or quality or that interfere with harvesting." This is only the principal aim and not the only aim of plant growth regulator. As seen further from the heading plant growth substances ' plant growth substances or regulators are used to modify the crop "and further," plant growth regulators other than nutrients usually are organic compounds'. Thus nutrients are also covered under the term plant growth regulators. The scope of the term "nutrients" in the said quotation obviously includes, viz. regulation of competition to the main crop, refers to micronutrient....