TaxTMI 
TaxTMI 
2022 (9) TMI 738
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....Commissionerate. The operative part of the impugned order is as follows: " ORDER a. I order for classification of the "micronutrients" manufactured and cleared by M/s KPR Fertilisers Limited, Biccavolu under Chapter subheading No.38089340 of the Central Excise Tariff Act, 1985; b. I confirm the demand duty of Rs.1,23,49,088/- (Rupees One Crore Twenty Three Lakhs Forty Nine Thousand Eighty Eight only) (Cenvat Rs.1,19,89,406/-, Education Cess of Rs.2,39,788/-, Secondary and Higher Education Cess of Rs.1,19,894/-) on M/s KPR Fertilisers Limited, Nallamilli Road, Biccavolu, Biccavolu Mandal, East Godavari Dist, A.P. under the Section 11A of the Central Excise Act 1944 on the micronutrients cleared by them without payment of....
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....ain their carbon, oxygen and hydrogen from water and air and the remaining nutrients from the soil. Since the naturally available nutrients in the soil are not sufficient, fertilisers either in the form of compost or farmyard manure or in the form of synthetic fertilisers are used to supplement. The synthetic fertilisers provide various nutrients i.e., chemical elements required for the plants in forms in which they can absorb. The nitrogen, phosphorous and potassium (N, P, K) are required in very large quantities and are referred to as primary nutrients. Other elements such as calcium, magnesium and sulphur (Ca, Mg, S) are required in relatively smaller quantities and are referred to as secondary nutrients. Still other minerals such as Bor....
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.... are used in large quantities and others which are used in small quantities and are referred to as micronutrients. The proposal of the revenue to classify the micronutrients manufactured by them as plant growth regulators is clearly not sustainable because they are two different types of products. He also submits that the distinction between micronutrients and plant growth regulators was explained in detail by the CBEC in Cirular dated 06.04.2016 after consulting Indian Council of Agriculture and Research. Elements such as Iron, Manganese, Zinc, Copper, Molybdenum, Boron, Nickel, and Chlorine have clearly been mentioned as micronutrients in the circular. Even for this reason, the proposed classification is not sustainable. 7. He further ....
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....ements namely Nitrogen, Phosphorous or Potassium, the mixture shall be classified under any of the heading of Chapter 31, depending upon its composition. On the other hand, where the essential character of the product is that of mixture of micronutrients/multi-micronutrients having predominately trace elements, it shall be classified under CETH 3824 as chemical products not elsewhere specified or included." 10. He submits that although the proposal in the show cause notice and the confirmation in the impugned order is classifying the goods as plant growth regulators which apparently is not correct considering the nature of the goods manufactured, they cannot be classified under CETH 3105 as well. Therefore, the appropriate heading is CET....
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....phorous 5.00 Potash 9.525 Total 100.00 3. Formulation No:5 Zinc 2.50 Ferrous 1.00 Manganese 1.00 Borax 0.50 Magnesium 90.50 Nitrogen 2.5 Phosphorous 1.00 Potash 1.00 Total 100.00 4. Formulation No:6 Zinc 7.575 Ferrous 5.250 Manganese 4.165 Borax 4.760 Magnesium 61.26 Nitrogen 7.575 Phosphorous 5.250 Potash 4.165 Total 100.00 4. Formulation No:6 Zinc 7.15 Ferrous 1.25 Manganese 1.80 Magnesium 10.00 Stonechips 60.55 Nitrogen 8.000 Phosphorous 1.250 Potash 10.000 Total 100.00 14. He submits that the only requirement in the Chapt....
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....hall be condemned unheard". If the proposal is to classify the goods under a different tariff heading than one proposed in the show cause notice, a show cause notice must be issued and adequate opportunity should be provided to the appellant to explain why such classification should not be adopted. 17. We further find that the formulations as presented before us and discussed above clearly show that the assessee's products indeed, had Nitrogen or Phosphorous or Potassium or more than one of these three as an ingredient in them. The argument of the learned Authorized Representative is that although they were present in these formulations they were not essential. We do not find any basis to hold as to which of these elements in the product....