TaxTMI 
TaxTMI 
2026 (4) TMI 1225
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....ving 'Nil' rate of duty as adopted by the Appellant or the goods are classifiable under Chapter heading 3103 of Central Excise Tariff Act, 1985 as held by the Adjudication authority. 2. The brief facts are the Appellant M/s. Helicon Agro Chemicals Pvt. Ltd., is manufacturing fertilizers falling under Chapter 3105 of the Schedule to Central Excise Tariff Act, 1985. They are having 2(two) manufacturing units, one at Gulbarga and another at Raichur. On scrutiny of the ER-1 returns filed by the Appellant, for the period from 2013-2014 and on verification of other records, it is observed that in addition to 'fertilizers' falling under Chapter heading 3105, Appellant has also manufactured and cleared another product called 'soil conditioner' during the period from 2011-2012 and 2013-14 and the details of the same have not been shown in the statutory ER-1 returns filed by them. Accordingly, investigation was conducted and 4(four) show cause notices were issued, from March, 2011 to December, 2014, January 2015 to September, 2015, October 2015 to March, 2016 and April 2016 to June, 2017 for their Gulbarga unit and also another 2(two) show cause notices were issued....
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....e as a filler material. Gypsum is calcium sulphate and dolomite contain little quantity of calcium and magnesium and as per product specification. The assessee mixes these materials and makes 'soil conditioner' granules. The assessee purchased major raw material Phosphogypsum, from M/s. Sterilite Industries and M/s. SPIC and Dolomite from (Andhra Pradesh). The assessee mixes phoshogypsum and dolomite in specific proportion with filler material and sprinkle water to form granules that they pack in 50 Kg HDPE bags and sell to the buyers. The 'soil conditioner' is used by the farmers, as soil application in the fields to normalize the PH level of the soil and it is basically used as soil amendment, as soil conditioner when mixed with soil, the Calcium, Magnesium and Sulphur contained in the soil conditioner reacts with soil and bring down the soil PH to normal level. The filler material is bentonite clay". ................................ "46.7. On going through the definition of manufacture as per section 2(f)(ii) and (iii), the process of manufacture of soil conditioner by the assessee, after mixing, granulating, packing of various materials like Ph....
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....le under chapter 310300900". 5. Learned Consultant submits that on perusal of the above finding, it is admitted fact that the product remains as 'soil conditioner' and there is no distinct identity for the product manufactured by the Appellant. Law is well settled that pulverization of rock is not manufacturing. In this regard, the Learned Consultant draws our attention to various decisions including the Collector of Central Excise Vs. Coimbatore Pioneer Fertilizers Ltd - 1997 (94) ELT 6 (SC), Laljee Godhoo & Co. Vs. Commr. of C.Ex., Mumbai - 2001 (132) ELT 287 (Tri. -Mum). 6. Further submits that as per the judgment of the Hon'ble Supreme Court in the matter of Commr. of C.Ex., Mumbai Vs. Laljee Godhoo & Co - (2007 (216) E.L.T 514 (SC), issue is whether the process to which the raw asafoetida (hing) is subjected to, resulting in the formation of "compounded asafoetida", constitutes "manufacture" under the Central Excise Act, 1944 was considered and held that "we have gone through the process. As rightly held by the Tribunal there is no chemical change brought about by the aforestated process. The product at the starting point of the process and the product at the ter....
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....L.T. 468 (Tri.). In that case the dispute was whether the process relating to improvement of the quality of bitumen by raising its softening point and penetration amounted to manufacture of a new and different commodity. The process involved in improving the quality of bitumen was oxidation, which converted straight grade bitumen into air blown bitumen. In revenue's appeal the Tribunal had inter alia held as under: "19. The duty paid bitumen received by the Assessee is boiled so that foreign substances like sand and stone settle down; thereafter the air is blown into the material for improving the quality of the bitumen by raising the softening point and penetration; this makes the bitumen suitable for intended application. It is seen from the process undertaken by the Assessees that only the quality of the product which has already suffered duty is improved....." (emphasis supplied ) As aforesaid, revenue's appeal was dismissed by this Court vide order dated 2nd August 2006 in Tikatar Industries (supra). 25. We therefore, hold that PMB or CRMB cannot be treated as bituminous mixtures falling under CSH 27150090 and shall continue to be cl....
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....to one or other of the descriptions given below: (i) Basic slag, (ii) Natural phosphates of heading 2510, calcined or further heat-treated than for the removal of impurities; (iii) Superphosphates (single, double or triple); (iv) Calcium hydrogen orthophosphate containing not less than 0.2 percent by weight of fluorine calculated on the dry anhydrous product; (b) Fertilisers consisting of any of the goods described in (a) above mixed together, but with no account being taken of the fluorine content limit; (c) Fertilisers consisting of any of the goods described in (a) or (b) above, but with no account being taken of the fluorine content limit, mixed with chalk, gypsum or other inorganic non-fertilising substances. 10. In this regard, Learned Consultant draws our attention to the guideline for management and handling of phosphogypsum generated from Phosphoric acid plants issued by the Central Pollution Control Board and Table 6 is reproduced below. Parameter Composition in % H2O cryst 18.0 SO2 43.6 CaO 32.0 MgO 0.40 Al2O3 + Fe2O3 1.82 SiO2 ins, In HCI 1.64 Na₂O 0.36 P2O5....
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....ou are requested to pay the appropriate central excise duty along with applicable interest and furnish the payment particulars to this office immediately". 12. Learned Consultant submits that as per the definition considered while issuing show cause notice, fertilizers were considered as; "8. Fertilizers: Fertilizers are materials added to soil and, sometimes to foliage to supply nutrients to sustain plants and promote their abundant and fruitful growth. The elements that constitute these plant foods are divided into three classes- (1) Primary Nutrients-Nitrogen (N), Phosphorous (P) and Potassium (K), which are required in greatest quantity. (2) Secondary Nutrients Calcium (Ca), Magnesium (Mg) and Sulphur (S) which are required in smaller quantities, (3) Minor or so called micronutrients Iron (Fe), Manganese (Mn), Copper (Cu), Zinc (Zn), Boron (B) and Molybdenum (Mo), which are required in very minute quantities. 13. Learned Consultant also submits that as per impugned order, reference is made to the Fertilizer Control Order 1985, and as per clause (h) "fertilizer" means any substance used or intended to be used as a fertilizer of the soil ....
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....d notice that we have not received any communication from Asst. Commissioner Central Excise & Customs Gulbarga till date hence allegations of suppression of fact is neither legal nor valid, in the present matter. 15. Learned Authorized Representative (AR) for the Revenue reiterated the findings in the impugned order and submit that the Adjudication Authority considered the process carried out by the appellant as manufacturing as per the letter dated 24.04.2015, as explained in Para 10.4 of the impugned order. As regards classification, Learned AR submits that major material used to manufacture soil conditioner is phosphogypsum which is a universal soil amendment /soil conditioner. The major raw material used by the assessee is phosphogypsum which is procured by them from M/s. Sessa Sterlite Industries, Tuticorin. The phosphogypsum on which central excise duty is paid and procured by the assessee is byproduct of phosphatic fertilizer industry and is a manufactured item. The phoshogypsum is commonly and widely and best known 'soil conditioner' throughout the world. The other major raw material Dolomite is also generally used as soil conditioner. The product soil conditione....