TaxTMI 
TaxTMI 
2007 (2) TMI 19
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....sion upheld the assessee's contention that the item produced by them was plant growth promoter falling under Chapter Heading 31.01.00. In this regard, he has relied on technical information found in the Book on Plant Physiology 4th Edition by Robert M. Devlin and Francis H. Witham. He has also referred to the definition of the terms found in the book of J. C. Johnson He has also considered the HSN Explanatory Notes besides the Chemical Examiner's report. The findings given by the Commissioner (A) in Para 5 is reproduced herein below. 5. I have carefully gone through the case records and the submissions made by the appellants, including those urged at the time of personal hearing. It is found that the appellant's product contained nutrients....
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....than nutrients and that, when applied in small amounts, they can alter physiological processes in plants. In the instant case, the adjudicating authority had no case that "Cheminocel" could inhibit or otherwise modify (apart from promoting) plant processes. The appellant's plea that the product contained only amino acids and other nutrients and, therefore, only promoted plant growth has not been successfully dislodged in the Additional Commissioner's order. The appellant's product 'Cheminocel' and other such products contained nutrients and only promoted plant growth, which was a function squarely attributable to fertilizers. The HSN explanatory notes, which also said that plant growth regulators were intended to inhibit or promote physiolo....
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....ropriately classifiable under Chapter 31 of the Central Excise Tariff Schedule. The appellants' products also contained micro-nutrients and hence the same should be classified only under Chapter 31. I have seen the chemical report furnished by the Joint Director of Central Revenue Laboratory. Customs House, Chennai vide letter L.Cx.S.29/77/2004 dated 30-11-2004. The report reads as "it is seen from literature forwarded that cheminocel SP is composed of mixture of Amino Acids. The salient features of the sample as stated on the packing are, (i) increased crop growth through plant metabolic activity; (ii) increases uptake of micro nutrients; (iii) helps and accelerate photosynthesis: (iv) activates and induces flowering and fruit set related ....
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....nalysed the contents of the above 3 samples. Based on this, we furnish the following for your kind perusal. The referred samples are a protein hydrolysate of vegetable/plant origin. In the past we con ducted experiments on agricultural crops at our farm to test protein hydrolysate for drawing efficacy; phytotoxicity and compatibility and also we tested them for toxicity in mammalian species. Our field cop efficacy studies have unequivocally demonstrated that the said protein hydrolysates when applied at foliar sprays can enhance the growth of the crops thus realizing statistically higher yields. Perhaps, the reason for this could be the increased nitrogen source, acting like fertilizer. Hence, we believe that protein hydrolysate of the abov....
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....ention that the product contents nutrients, therefore, they attempt to distinguish the Apex Court judgment. The other judgments referred to by the Commissioner (A) are also being attempting to distinguish in the grounds of appeal. In the grounds of the appeal, it is the contention of the revenue that the item is a plant growth regulator and to be classified under specific Chapter Heading 38.08.20. 3. We have heard the learned JDR who argued in extenso and also learned Counsel. 4. We have carefully perused the findings extracted above and the entire set of paper-book produced by the learned Counsel to substantiate their plea with evidence that the item in question is only a plant growth promoter and not plant growth regulator. The revenue ....