2018 (5) TMI 199

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....083040 (upto 2006-07) and thereafter classified under Tariff Item 38089340 (upto 2007-08) of the Central Excise Tariff Act, 1985 as Plant Growth Regulator. The unit of the appellant is located in the State of Jammu & Kashmir and they were availing the benefit of area based exemption under Notification No.56/02-CE dated 14.11.2002 by availing the Cenvat credit on inputs paying duty through PLA in cash after exhausting the Cenvat credit. The Revenue has entertained a view that the said product is classifiable as fertiliser under sub heading 3101.00 attracting nil rate of duty. Therefore, the appellants are not entitled to Cenvat credit and are not required to pay duty consequently they are not entitled to the benefit of Notification No.56/02-....

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.... position has not been disputed by the department; therefore, the product merits classification under the category of "Plant Growth Regulator". It has also been stated that Vipul Booster, which contains Triacontanol has been classified as a plant growth regulator as the same is capable of only regulating the growth of a plant and not capable of killing insects. Therefore, product is not an insecticide but a plant growth promoter. It is intended to be used to improve the plant growth in order to get more crop yield. In the affidavits filed by the farmers, which is available on record, the deponents therein have stated that they have been using Vipul Booster as an excellent plant growth promoter for getting higher crop yield. Therefore, the p....

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....hus, even though, in normal parlance, a product may be considered to be an insecticide, if that product has any therapeutic and prophylactic property, then for purposes of classification that product cannot fall under chapter 38. In the instant case, there are no such issues as far as Triacontanol is concerned. There is no specific exclusion of Triacontanol or its preparation from the category of insecticides falling under heading No. 3008.10 and for its classification under heading No. 3008.20 as a Plant Growth Regulator. 7.11 In the light of the above, we are of the view that the product Vipul Booster, which has as its active ingredient, Triacontanol, which is an insecticide merits classification as an 'insecticide' under heading No. 3....