TaxTMI 
TaxTMI 
2020 (3) TMI 908
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....sit of the officers of the Anti Evasion, Hyderabad-I Commissionerate to the factory premises of the assessee wherein, it was alleged to have gathered that the assessee are resorting to evasion of Central Excise Duty by mis-classification of Plant Growth Regulators (Micronutrients), Bio-fertilizers and Bio-pesticides. In the Show Cause Notice it was proposed to re-classify the Plant Growth Regulators under Chapter Heading 3808of Chapter 38 to the First Schedule of the Central Excise Tariff Act; Bio-pesticides of microbial origin was proposed to be re-classified under Chapter Heading 3808 as against tariff item 3002of the Central Excise Tariff Act, Biopesticides of plant/vegetable origin was proposed to be re-classified under Chapter Heading ....
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.... order of this Bench relied upon by the Ld. Advocate for the assessee. 6.1 With regard to the first issue of classification of Micronutrient fertilizers/Plant Growth Regulators by the assessee under Chapter Heading 3105, it has been recorded by this Bench as under : "6.The first issue is with regard to the classification of Single/Multi Micronutrient Fertilizers. The assessee has adopted the classification under 3105 whereas department proposes the classification under 3808 as Plant Growth Regulators. The Tariff item 3808 9340 specifically covers Plant Growth Regulators. The scope of the term 'Plant Growth Regulators' is elicited in HSN Explanatory note which is as under: "Plant Growth Regulators are applied to alter th....
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....peals. It is his submission that the same ratio will apply in the case in hand. It is his further submission that as regards the demands raised on repacking of single micronutrient, appellants were under bona fide belief that the said activity of repacking will not amount to manufacture and did not discharge the duty liability as they have received single micronutrients from the manufacturers without payment of duty. He would submit that C.B.E. & C. circular during the relevant period clarifies that there is no specific heading in tariff for classification of micronutrients, hence the demands raised be set aside. 7.In appeal No. E/27052/2013, the issue of demand of duty on repacking of single micronutrients, classifying them under ....
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....of the view that the Micronutrients (single/multi) have to be classified under 3105 only. The demand raised by the department classifying them as Plant Growth Regulators under 3808 cannot sustain and requires to be set aside. The demand, interest and penalties imposed classifying the multi micronutrient under heading 3808 is set aside." 6.2 With regard to the classification and demand of duty on Bio-fertilizers/Bio-pesticides of microbial origin, this Bench has followed the decision of M/s. T. Stanes & Co. Vs. Commissioner of Central Excise, Coimbatore reported in 2009 (235) E.L.T. 183 (Tri. - Chennai) to hold that the demand of duty classifying the said products under Chapter Headings 3105 and 3808 cannot sustain and consequently, the s....