Central Excise - Classification of Micro Nutrients - Clarification regarding - Central Excise - 26/90-CX.3

Central Excise - Classification of Micro Nutrients - Clarification regarding Circular No. 26/90-CX.3 Dated 24-5-1990 [From F. No. 106/1/90-CX.3] Government of India Central Board of Excise Customs New Delhi Subject : Central Excise - Classification of Micro Nutrients - Clarification regarding A doubt has been expressed regarding the classification of the product 'micro nutrients' whether under Heading No. 31.05 as 'fertilisers' or under Heading No. 38.08 as 'plant growth regulator'. 2. The matter has been examined in consultation with the Deputy Chief Chemist, CRCL, New Delhi. The product is reported to be a heterogenous mixture of inorganic salts, i.e., sulphates of iron, copper, zinc, molybdenum, boron. Further, it is also reported that the product does not contain any elements like nitrogen, phosphorous and potassium. It has been opined by the Deputy Chief Chemist that Heading 31.05 covers only those compounds in which one of the elements is either nitrogen, phosphorous or potassium. Since the product under reference does not contain nitrogen, phosphorous or potassium in the same does not merit classification as fertilisers under Heading 31.05. As regards the classification of the product under Heading 38.08, which covers, inter alia, plant growth regulators, it has been opined by the Deputy Chief Chemist that the product does contain the elements which would make it a plant grow regulator. As per authentic literature on chemical technology, salts of boron, manganese, zinc, copper, iron, moibdenum' are known as trace elements. It is because of the fact that they are essential for plant growth in small amounts only. Absence of trace elements leads to stinted growth and lead in the course of several plant diseases. They are, therefore, plant growth regulators which alter life process of a plant so as to accelerate growth, enhance yield, improve quality or facilitate harvesting. In this connection, reference is also invited to the Explanatory Note under Heading 38.08 of HSN at page 529. 3. In view of the above, it is clarified that the appropriate classification of the product plant growth regulator would be under Heading 38.08 of CET. 4. The above clarification may be brought to the notice to the lower field formations and the trade interests may also be suitably advised. 5. All pending assessments may be finalised on the above basis.