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TMI Blog2017 (7) TMI 846X X X X Extracts X X X X X X X X Extracts X X X X ..... Pvt. Ltd. (Appeal No.E/247/2008) were clearing micronutrients as other fertilisers at 'Nil' rate of duty under Chapter Heading 3105 of Central Excise Tariff 1985. Department took the view that micronutrient products remain excluded from classification under CET 3105 and that the products should be classified only as Plant Growth Regulator under CETA 3808.20. Accordingly, proceedings were initiated against appellants, inter alia, demanding differential duty of Central Excise alongwith interest, and imposition of penalties under various provisions of law. In the case of appeal filed by M/s Sovereign Agro Products Pvt. Ltd (Appeal No. E/247/2008), the said appellant was also additionally asked to show cause why another product "Master ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt in the case of Ranadey Micronutrients [1996(87) E.L.T 19 (SC)], Board re-examined the matter and issued another circular No.392/25/98-CX, dated 19.05.1998. Referring to the HSN Explanatory Notes, Board advised therein as follows: "Fertilisers are materials added to soil and, sometimes to foliage to supply nutrients to sustain plants and promote their abundant and fruitful growth. The elements that constitute these plant foods are divided into three classes (1) Primary-Nitrogen (N), Phosphorous (P) and Potassium (K), (2) Secondary - Calcium (Ca), Magnesium (Mg) and Sulphur (S) and (3) Minor or so called micronutrients Iron (Fe), Manganese (Mn), Copper (Cu), Zinc (Zn), Boron (B) and Molybdenum (Mo). However, for the purpose of classifica ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssifications, the CETA heading Nos. 38.08 and 3105 are reproduced below: CETH 38.08 "Insecticides, rodenticides, fungicides, herbicides, anti-sprouting products and plant growth regulators, disinfectants and similar products put up in form or packings for retail sale or as preparations on articles (for example, sulphur-treated bands, wicks and candles and fly-papers). CETH 31.05 "Mineral or chemical fertilisers, containing two or three of the fertiliser elements, nitrogen, phosphorous and potassium; other fertilisers". 8.5 The HSN notes for these tariff headings will be very useful for determining the correct classification. Entry No. 38.08 is in fact is grouped in chapter for "Miscellaneous Chemical Products" Under the heading 38.0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... development of plants containing elements like iron, Manganese, Zinc, Copper, Boron, Molybdenum, Nickel etc. Board has also acknowledged that these micronutrients are sold in the market as micronutrient fertiliser. It has, however, clarified that for classification under chapter 31, atleast one of the elements viz; Nitrogen, phosphorous or potassium should be an essential constituent of the fertiliser. Board has also clearly differentiated plant growth regulators as organic compound other than nutrients which affect the physiological process of growth and development in plants. Board has further clarified, in para 6 therein, that its past circulars on the subject, viz; dated 21.11.1994 and 19.05.1998 are rescinded and that classification of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... products "micronutrients will" be classified only in CETH 3105. The appeals filed by these appellants on this score will, therefore, succeed and are allowed, with consequential benefits if any. In respect of the controversy and alleged differential duty liability in respect of the product "Master Neem" manufactured by appellant Sovereign Agro Products Pvt. Ltd. (Appeal No. E/247/2008), we find that in view of the very same discussions of Aries Agrovet Industries Ltd. reproduced supra, this product being an insecticide will definitely fall within the ambit of CETH 3808.10. Accordingly, differential duty liability on this account in respect of this item will have to be discharged by the appellant, along with interest thereto. However, since ..... X X X X Extracts X X X X X X X X Extracts X X X X
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