TaxTMI 
TaxTMI 
1996 (8) TMI 219
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.... with the relevant Chapter Note No. 1 to Chapter 31 which reads as follows :- "Heading Nos. 31.02, 31.03, 31.04 and 31.05 cover Mineral or Chemical Fertilisers, even when they are clearly not to be used as fertilisers." 2.1 It may be stated at this stage that Heading under Chapter 31 and Chapter 28 have undergone drastic change w.e.f. 10-2-1987. What is relevant for our purposes is that Chapter Note 3, Chapter 28, mentions, inter alia, as follows :- "Subject to the provisions of Note 1 to Section VI, this Chapter does not cover......(c) products mentioned in Note 2, 3, 4 or 5 to Chapter 31." 2.2 Simultaneously, Chapter 31 was also amended w.e.f. 10-2-1987 by introducing Chapter Note 2 and specifically including therein....
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....om that he also submits that Apex Court has clearly held in Collector v. Woodcraft, reported in 1995 (77) E.L.T. 23 (SC) = 1995 (57) ECR 417 that if the Central Excise Tariff entry is aligned with the HSN, then Explanatory Notes to HSN are of high persuasive value. The relevant observations of the Supreme Court are as follows :- "Since the Central Excise Tariff Act, 1985 is enacted on the basis and pattern of the HSN, the same expression used in the Act must, as far as practicable be construed to have the meaning which is expressly given to it in the HSN when there is no indication in the Indian Tariff of a different intention." 2.5 Learned SDR, therefore, submits that in view of the specific classification of Sodium Nitrate unde....
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....the fact that Sodium Nitrate was not known as fertilisers in the Indian trade is amply evident from the various authorities, viz. - (1) Fertiliser Control Order; (2) Classified List of Indian Standards for petroleum, coal and related products. 3.3 He also points out that there are Indian standards for Sodium Nitrate for explosives and pyrotechnic industries; but there is no Indian standard for Sodium Nitrate as a fertilisers. 3.4  Referring to Fertiliser Control Order, he points out that various types of straight Nitrogenous Fertilisers are mentioned therein but it does not include Sodium Nitrate. Referring to classified list of Indian standards, he again points out that in the list of `fertilisers' at Page 7....
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.... avail to him. From the plain reading of Tariff Heading 31.02 read with Chapter Note 1 of the said Chapter, it is clear that before Sodium Nitrate can be classified as a Nitrogenous Chemical Fertiliser, it must be shown by the Department on evidence that it was known to trade in India as a fertiliser. No evidence has been brought on record by the Revenue except the evidence of its use as a fertiliser on the strength of Condensed Chemical Dictionary. On the other hand, the learned Advocate for the Respondents has brought on record a plethora of evidence which indicates clearly that Sodium Nitrate was not known in India as a fertiliser. Fertiliser Control Order broadly indicates what is known in India as a fertiliser and its production and pr....