9911796707
TMI Blog2008 (6) TMI 383X X X X Extracts X X X X X X X X Extracts X X X X ..... consequential demand of duty as well as against the penalty imposed on them. What the appellants imported was what was declared in the relevant Bills of Entry as LIBREL ZN (EDTA CHELATE) CONTAINING 14% ZINC AS ZN . It was classified under SH 3105 90 90 and a part of the consignment was cleared on payment of duty accordingly. The remaining part of the consignment was provisionally assessed on the above basis upon execution of bond and production of bank guarantee as required by the assessing authority. Later on, in adjudication of a show-cause notice, the learned Commissioner of Customs classified the goods under Heading 2922 (oxygen-function amino-compounds) and confirmed the demand of differential duty against the party. In the present ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Note 6, such compound cannot be classified as micronutrient fertilizer. After consulting the chemical literature available on record, we find that ZINC-EDTA CHELATE is certainly a separate chemically defined organic compound containing zinc in linkage with nitrogen and oxygen atoms through coordinate bonds. We find that it has definite chemical structure with various atoms present in constant proportions. It has also a definite chemical formula. By virtue of these features, the compound might attract Chapter 29, prima facie. However, the substantive opinion given by RFCL cannot be ignored. They say that the compound is a micronutrient fertilizer under FCO. Chapter Note 6 ibid reads as under :- For the purposes of heading 3105, the term ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... IBA had cleared the imported item to M/s. Swathi and the latter had repacked and relabelled and cleared the same without payment of duty. The department, on the Central Excise side, took the view that the bulk product (classified under Heading 2922 of the First Schedule to the Central Excise Tariff Act), when so repacked and relabelled, becomes an excisable product in terms of Note 10 to Chapter 29 ibid and therefore duty requires to be paid on the product. This view made its way into a show-cause notice, which culminated in the order impugned by M/s. CIBA in Appeal No. E/96/2008 and by M/s. Swathi in Appeal No. E/103/2008. The order has also been challenged by K. Swaminathan and M. Natarajan, on whom there are penalties imposed by the Comm ..... X X X X Extracts X X X X X X X X Extracts X X X X
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