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TMI Blog2017 (9) TMI 140X X X X Extracts X X X X X X X X Extracts X X X X ..... . R.K. Sharma, AR for the Appellant(s) Sh. B.L. Narasimhan, Advocate for the Respondent(s) ORDER Per : Devender Singh The appellant is in appeal against the impugned order. 2. The brief facts of the case are that the appellant is engaged in the manufacture of Pesticides, Insecticides, Bio-fertilizer and other fertilizers falling under Chapter 38 and 31 of Central Excise Tariff Act, 1985. It was alleged that Bio fertilizer (Shakti) manufactured by the appellant is not covered under CETH 310100 as vegetable fertilizer, and the same is Plant Growth Regulators (in short PGR) covered under heading No. 380890 which attract Central Excise Duty unlike Bio-fertilizer (Shakti) which is exempt from Central Excise Duty. The sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rtilizers. He further contended that the ingredients Auxin and Cytokinins which have use as plant growth regulator are present in the sample tested by the Chemical Examiner. He refered to Chapter Note 1(a) of Chapter 38 and stated that plant growth regulator put up in forms or packing for retail sale are covered under Chapter 38. He relied on the Circular No.392/25/98-CX dt. 19.05.1998. 4. Ld. Advocate for the respondent submits that the report of Chemical Examiner was inconclusive and does not mention percentage composition of auxin and cytokinins known as plant growth regulators. He referred to the various authorities to stress that plant growth regulators are organic compounds other than nutrients. He further referred to Chapter N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ture too, percentage of auxin and cytokinins cannot be found ascertained. The literature says that it increases the yield and product quality of Rice, Wheat, Cotton, Sugarcane, Potato, Vegetables and Fruits. It increases the growth activities of plants like vegetative growth, flowering and fruit bearing. It acts as a Bio-stimulant which increases chemical activities in plant cells resulting in increased photosynthesis and protein building. It is also mentioned that Shakti granules are for soil application. 7. We find that the Ld. Commissioner (Appeals) has elaborately and correctly analyzed the issue in Para 7, 8 and 9 of his order. We find no reasons to disagree with his conclusion in Para 9, which are reproduced below:- 9. From th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gredients cannot qualify to be PGR in terms of definition provided by International Coding System discussed in Para 8 above. V. The Chemical Examination Report does not suggest that the impugned product can be termed as separate chemically defined element or compound which is pre-requisite f a PGR in terms of Chapter note discussed in Para 7 above. 8. As it is indicated in literature that it is a mixture of different micronutrients and auxin and cytokinins, it cannot be termed as a chemically defined element or compound as is required in Chapter Note 01 of Chapter 38 of Central Excise Tariff. 9. In view of the above, the appeal of Revenue has no merit and is liable to be dismissed. (Operative part pronounced in the Court) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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