2017 (12) TMI 458

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....reas the respondents claim classification as other fertilizers under CETH 31.05. Both the lower authorities have held that the items would fall under only CTH 31.05. Aggrieved department is before this forum. 2. Heard both sides. 3. The controversy relating to classification of micronutrients has already been addressed by this Tribunal in Final Order No.30767-30768/2017 dated 19.06.2017 in the case of CCE & ST, Hyderabad-IV Vs. Aries Agrovet Industries Ltd. We reproduce the relevant paragraphs: 3. We find that the controversy relating to classification of micronutrients has already been addressed in the Final Order No.30767-30768/2017, dt. 19.06.2017 by this very Bench, in the case of CCE & ST Hyderabad-IV Vs Aries Agrovet In....

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....ium (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 to Chapter 31, it contains N, P or ....

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....gen, phosphorous and potassium; other fertilizers". 8.5 The HSN notes for these tariff headings will be very useful for determining the correct classification. Entry No.38.08 is in fact is grouped in chapter for "Miscellaneous Chemical Products". Under the heading 38.08, which includes Plant Growth Regulators', it is indicated that the heading covers anti-sprouting products and Plant Growth Regulators intended to inhibit or promote physiological process in plants. It is interesting to note that Plant Growth Regulators are grouped alongwith other insecticides, fungicides, herbicides and disinfectants, all of which are intended to "destroy pathogenic germs, insects, mosses and moulds, weeds, pests and achieve their results as giv....

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....s "organic compound other than nutrients which affect the physiological process of growth and development in plants". Board has further clarified, in para 6 therein, that its past circulars on the subject, viz; dated 21.11.1994 and 19.05.1998 are rescinded and that classification of micronutrients etc. shall be governed by the present circulars. 8.7 As per the aforesaid CBEC circular dated 06.04.2016, plant growth regulators are defined as organic compounds other than nutrients that affect the physiological processes in plants, by hormonal action in promoting inhibiting or modifying growth and development. On the other hand, micronutrients, as explained in the very same circular, are essential nutrients, like iron, Manganese, Zinc,....