2024 (2) TMI 1052 - AAR - GST

Classification of goods (micronutrient Fertilisers) - Mangala Borosan - Mangala G1 - Classifiable under Chapter Heading 3105 as Fertilisers or not - HELD THAT - The determination to classify the product under 28332990 is fortified by a meticulous examination of relevant scholarly works. In contrast to its characterization as a blend of micronutrients, the product unequivocally comprises inorganic chemicals. This classification aligns seamlessly with the delineated characteristics in the relevant code, accentuating the importance of its predominantly sulphate-centric constitution. This classification not only mirrors the inherent qualities of the product but also ensures precise alignment within the regulatory framework. The product s classification under 28332990 is substantiated by Its composition, as expounded in existing literature. The absence of micronutrient blends and the prevalence of inorganic chemicals, specifically sulphates, underscore its appropriateness for placement within this specific classification. This thorough assessment facilitates a nuanced understanding of the produces nature and contributes to Its compliance with regulatory standards.

Summary

Issues Involved:
1. Classification of products Mangala Borosan and Mangala G1 under Chapter Heading 3105 as Fertilisers.
2. Appropriate classification if not under Chapter Heading 3105.

Summary:

Issue 1: Classification under Chapter Heading 3105 as Fertilisers
The applicant, engaged in manufacturing, trading, and marketing of various agricultural products, sought to classify Mangala Borosan and Mangala G1 under Chapter Heading 3105 as Fertilisers. They argued that these products meet the definition of "Fertiliser" under Section 2(h) of the Fertiliser (Control) Order, 1985, and should be classified under Chapter 31 of the Customs Tariff Act, 1975. The applicant emphasized that their products are specifically designed to improve plant growth and are understood in the market as "Fertilisers." They also referenced various tribunal decisions supporting the classification of micronutrient fertilisers under Chapter 31.

Issue 2: Appropriate Classification if not under Chapter Heading 3105
Upon examination, the Authority concluded that the products do not fall under the category of Micronutrients as defined in the Fertiliser Control Order, 1985. Instead, the products were found to be composed of a fusion of inorganic chemicals, primarily sulphates. Therefore, the products were classified under Tariff Item 28332990, which pertains to inorganic chemicals, specifically sulphates. This classification aligns with the product's composition and ensures compliance with regulatory standards.

Ruling:
1. Question: Whether the products referred supra i.e., Mangala Borosan and Mangala G1 are classifiable under Chapter Heading 3105 as Fertilisers?
Answer: NO

2. Question: If the answer to the question no. 1 is in negative, what would be the appropriate classification of the said micronutrient Fertilisers?
Answer: 2833 29 90 (Under Schedule III - 18% (CGST-9% and SGST-9% or IGST-18%)).