9911796707
TMI Blog2017 (9) TMI 876X X X X Extracts X X X X X X X X Extracts X X X X ..... under Central Excise Tariff Heading 3101.00.99 as Animal or Vegetable Fertilizers . The Revenue objected to the said classification and initiated proceedings to reclassify the product under Chapter 38 as Miscellaneous Chemical Products and more specifically as Plant Growth Regulators under CETH 38089340. The consequence of such reclassification is the liability of the appellant-assessee for a differential duty as the product as a fertilizer is eligible for full exemption. 3. Appeal Nos. E/271/2009, E/289/2009 and E/241/2010 were against orders passed by Commissioner (Appeals), LTU, Chennai on the classification of ABDA. Revenue also filed Appeal No.E/250/2010 against the same impugned OIA dt. 09.02.2010 of Commissioner (Appeals), LTU (challenged by assessee in Appeal E/241/2010) on the ground that the Revenue is correct in reclassifying the product as done by the original authority under 38089990. 4. Appeal No.E/395/2010 is against original order dated 30.3.2010 passed by Commissioner, LTU. This appeal dealt with classification of ABDA as well as concession available to the appellant-assessee when cleared to DTA in terms of Notification No.23/2003 dt. 31.1.2003. 5. Revenue also ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Vs CCE Jaipur - 2013 (290) ELT 372 (Tri.-LB) and Godrej Industries Ltd. Vs CCE & ST Surat 2016 (338) ELT 435 (Tri.-Ahmd.). (f) The extended period demand is not tenable in the present case. The dispute is the classification of the product. The appellant informed the department on 1.8.2005 itself giving details of the composition of the product and their intent to clear it under Chapter 31 without payment of duty. Accordingly, there is no tenable reason to invoke suppression etc. for a demand of extended period and also to impose penalties on the appellant-assessee. 8. The Ld. A.R opposed the appeals by the appellant-assessee. He submitted that the test report of the Regional Director, Regional Centre of Organic Farming, Bangalore only indicated the constituents of the sample. He is not competent to classify the product. Further, the presence of Nitrogen, Phosphorous, Potassium in the sample is only to a small percentage. The claim of the appellant-assessee in product literature has been considered by the original authority and a decision is taken. It is clear that ABDA ensures uniform crop maturity, healthy vegetative growth resulting in plentiful harvest. The product per se is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion process is not mandated in respect of all kind of organic fertilizer. It states that substances made up of one or more unprocessed materials of biological nature. Thereafter an inclusive point is made for unprocessed mineral materials also. In any case, the admitted fact is that as per the chemical composition, impugned goods contain all the fertilizing elements namely, Nitrogen, Phosphorous and Potassium. No other active ingredient is shown (other than carbon). The quartz sand is apparently a volume filler. 12. Board in its clarification dt. 19.5.1998 examined the scope of plant growth regulators and fertilizers for classification. It was recorded that as per HSN Explanatory Note, plant growth regulators are applied to alter the life process of the plant so as to accelerate or retard growth, enhance yield, improve quality of facilitate harvesting etc. Plant hormones are one type of plant growth regulators. Synthetic organic chemicals are also used as plant growth regulators. The circular further clarified that fertilizers are materials added to soil and, sometimes to foliage to supply nutrients to sustain plants and promote their abundant and fruitful growth. It was further ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on states that the goods are to be produced or manufactured wholly from raw materials produced or manufactured in India. The appellants admittedly used paraffin wax imported into India. They have claimed that they have used the said paraffin wax as a consumable and not as a raw material. We are not in agreement with the said assertion. It is clear from the submissions made by the appellant and also from the letter dt. 1.8.2005 submitted to the department, that paraffin wax is one of the raw materials in the manufacture of ABDA. We have perused the manufacturing process for production of ABDA. It is clear that paraffin wax is used as a raw material in the process and the claim of the appellant that it is only consumable is misplaced. The detailed processes indicate the usage of paraffin wax for coating of granules. Even in the technical literature given by the appellant, it is clearly stated that paraffin wax is used for coating so that the plant extracts and the dye do not get removed from the base material. The paraffin wax loses its identity as soon as it is coated over the sand. It is apparently a raw material in the manufacture of ABDA. Simply because it loses its identity as a ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
