2018 (3) TMI 1256 - AT - Customs

Reclassification of imported goods - mono potassium phosphate - proper officer being of the opinion that though heading no. 2835 generally covered phosphates save for the exclusions which the imported goods were not issued notice for reclassification under heading no. 283524 of the First Schedule of Customs Tariff Act 1975 with consequential recovery of duty - Held that - the dropping of proceedings by the first appellate authority was a consequence of acceptance of the erroneous submissions of the importer viz. that the goods are covered by the Fertilizer Control Order 1985 that the conditions in note 6 of chapter 31 apply to the imports and that the description in that the 3105600 should suffice for classification. The Tribunal has in Vardhaman Fertilizes & Seeds Pvt Ltd v. Commissioner of Customs Pune 2016 (11) TMI 2 - CESTAT MUMBAI has held that The inclusions of the imported items in the Fertiliser (Control) Order 1985 as amended in 1995 cannot but reinforce the opinion that these are indeed fertilisers as decided by the competent department of the Government of India Appeal dismissed - decided against Revenue.

Summary

Issues: Classification of imported goods under the Customs Tariff Act, 1975.

In this case, M/s Deepak Agro Solutions Ltd imported 'mono potassium phosphate' and classified the goods under a specific heading in the Customs Tariff Act. The proper officer issued a notice for reclassification under a different heading, which would affect the duty benefits. The original authority confirmed the duty recovery, but the Commissioner of Customs (Appeals) set aside the demand. The Revenue appealed this decision, arguing that the goods should be classified differently due to specific chemical composition and usage as fertilizers. The Tribunal referenced a previous case to analyze whether the imported goods qualified as 'fertilizers' under Chapter 31 of the Customs Tariff Act. The Tribunal considered the chemical composition, exclusions, and inclusions under different headings to determine the appropriate classification. It was noted that the imported goods were listed in the Fertilizer (Control) Order, 1985, supporting their classification as fertilizers. Based on this analysis, the Tribunal dismissed the Revenue's appeal, concluding that the imported goods should be classified under Chapter 31 and not Chapter 28 of the Customs Tariff Act. The decision was pronounced in open court on 20/02/2018.