2017 (5) TMI 380 - AT - Customs

Classification of imported goods - seaweed fertilizer (liquid) , seawinner , and seaweed fertilizer (flakes) - classified under CTH 3101.00.99 or under CTH 3824.90.90? - benefit of N/N. 12/2012-Cus. dated 17.3.2012 - hazardous waste or not? - Held that - The test reports have confirmed that the imported goods were without toxic elements like mercury, silica, manganese, lead, arsenic, etc. and the report further confirmed the presence of fertilizing elements such as nitrogen, potassium and phosphorous. Since the imported goods comprise of fertilizing elements like nitrogen, potassium, phosphorous, the learned Commissioner (A) has ordered for classification of the same under CTH 3105 - appeal rejected - decided against Revenue.

Summary

Issues: Classification of imported goods under CTH 3101.00.99, challenge by Revenue, classification as hazardous waste under CTH 3824.90.36, appeal against Order-in-Appeal dated 9.3.2016, presence of arsenic in imported goods, classification under CTH 3105.

The judgment revolves around the classification of imported goods and the challenge by Revenue against the Order-in-Appeal dated 9.3.2016. The respondent imported seaweed fertilizer products and claimed classification under CTH 3101.00.99, seeking exemptions from certain duties. However, the department classified the goods under CTH 3824.90.90 initially. The Commissioner (A) classified the goods as per the respondent's request, leading to the Revenue's appeal.

In the appeal, Revenue argued that the imported goods contained arsenic levels exceeding the limits set by the Fertilizer Control Order (FCO) and should be classified as hazardous waste under CTH 3824.90.36. They contended that due to the high arsenic content, the goods should not be used as fertilizer. On the other hand, the respondent's counsel supported the impugned order, emphasizing that the goods did not merit classification as hazardous waste and should be classified under CTH 3101.00.99 as fertilizer.

The impugned order classified the imported goods under CTH 3105.90.90 as fertilizer based on test reports confirming the absence of toxic elements and the presence of fertilizing elements like nitrogen, potassium, and phosphorous. The Commissioner (A) relied on the testing reports by M/s. Shiva Analytical India Pvt. Ltd. and previous decisions to support the classification. The appeal was rejected, upholding the classification as fertilizer under CTH 3105.

The judgment highlighted the importance of testing imported goods like seaweed fertilizers for hazardous materials such as arsenic and sodium. It cautioned Customs Authorities to be vigilant and ensure that goods are safe for agricultural use before clearance. The judgment concluded by upholding the impugned order and rejecting the Revenue's appeal, emphasizing the significance of accurate classification and safety measures in importing goods for agricultural purposes.