TaxTMI 
TaxTMI 
2018 (1) TMI 148
X X X X Extracts X X X X
X X X X Extracts X X X X
....ation of products manufactured by the assessee/appellant and described as Micronutrients under Chapter Heading No.31055900 while it is the claim of the Revenue that this products would fall under the category of plant growth regulator under Chapter Heading No.38089910. ii. classification of Bio Fertilizers of Plant and Animal Origin according to assessee/appellant the product merits classification under Chapter Heading No.31011099 while it is the case of the Revenue that they merit under classification under 31051000; Pesticides/Fungicides of Chemical Origin and Plant/Vegetable Origin according to assessee/appellant and the Revenue product merits classification under 38089910 but the dispute is regarding eligibility to avail SSI benefit for this product specifically and Revenue's appeal is against the classification done by the adjudicating authority of Micronutrients containing Zinc Sulphate (Agriculture Grade) under Chapter Heading No.283329 which is fully exempt from Excise Duty by Notification No.04/2006 dated 01.03.2006 as amended while appellant has claimed the said benefit under the said notification and Revenue's appeals seeks reclassification of this product und....
X X X X Extracts X X X X
X X X X Extracts X X X X
....r Chapter 28 as it is an admitted fact that product is Micronutrient containing Zinc Sulphate. 7. On careful considerations and submissions made by both sides, we find that as regards the classification of product Micronutrient under Chapter No.38 of the Central Excise Tariff, we find that the said classification was contested before the Tribunal in the case of Aries Agrovet Industries Ltd., and Hindustan Agro Insecticides. The Tribunal in the case of Aries Agrovet Industries Ltd., after considering the entire gamut of the products in question, Chapter Heading number and Board's clarifications on the issue, from para No.8 to 8.8 recorded a detailed findings which is reproduced :- "8. We find that on the imbroglio with respect to the classification of 'Micronutrients', the CBEC themselves have been changing their stance thereon over the years. In a circular No.79/79/94-CX, dated 21.11.1994, the Board modified earlier circular No.26/90-CX.3, dated 26.06.1990 (which had advised classification of 'Micronutrients under heading No.38.08 as 'Plant Growth. Regulator') and clarified that "Micronutrients listed under Sr. No.1 (F) of Schedule 1 part (A) of the Fertiliser (Contro....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... the department in the grounds of appeal. 8.4 For better understanding of various contending classifications, the CETA heading Nos.38.08 and 3105 are reproduced below: CETH 38.08 "Insecticides, rodenticides, fungicides, herbicides, anti-sprouting products and plant growth regulators, disinfectants and similar products put up inform or packings for retail sale or as preparations on articles (for example, sulphur-treated bands, wicks and candles and fly-papers). CETH 31.05 "Mineral or chemical fertilisers, containing two or three of the fertiliser elements, nitrogen, phosphorous and potassium, other fertilisers". 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 Chomical 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, herbicid....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... quantities for the normal and development of plants. Micronutrients thus cannot modify inhibit retard the growth of plants like plant growth regulators, they only promote normal growth. 8.8 Applying the above findings, it clearly emerges that the impugned products definitely do contain more than one of the essential nutrients listed in the circular, they have also contain percentage of nitrogen. This being so, the disputed items are certainly micronutrients. In view of presence of nitrogen, and also considering that they are mixtures and not separate chemically defined compounds', the said goods therefore come under the ambit of micronutrient fertilizers and will then required to be classified as in "other fertilizers" in CETH 31.05." The above recorded findings being on the very same issue of the classification of Micronutrients, we do not find any reasons to deviate from the view on the decision taken by us in respect of the Micronutrients, accordingly, we hold that the products which are manufactured by the assessee/appellants and described as Micronutrients will be classified under Chapter Heading No.3105 and all the appeals filed by the appellant on this point succeed. ....