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TMI Blog2018 (1) TMI 148X X X X Extracts X X X X X X X X Extracts X X X X ..... n, Member (Judicial) And Mr. Madhu Mohan Damodhar, Member (Technical) Shri R. Muralidhar, Advocate for the Assessee. Shri Gautam Mukherjee, Assistant Commissioner (AR) for the ORDER [Order Per: M. V. Ravindran] By this common order we are disposing of the following appeals. Appeal No.E/20684/2015, E/30016/2016, E/30514/16 (all filed by assessee M/S SAN Industries) and appeal No.E/20992/2015 filed by the Revenue. 2. Appeal No.E/20684/2015 and E/20992/2015 are filed against Order-in-original No.EXCUS-001-COM-019-2014-15 dated 26.12.2014; appeal No.E/30016/2016 is filed against Order-in-Original No.EXCUS-001-COM-033-2015-16 dated 30.09.2015 and Appeal No.E/30514/2016 is filed against Order-in-Original No.EXCUS-001-COM-001-2016-17 dated 05.04.2016. 3. All the appeals raise a common point which are. i. classification of products manufactured by the assessee/appellant and described as Micronutrients under Chapter Heading No.31055900 while it is the claim of the Revenue that this products would fall under the category of plant growth regulator under Chapter Heading No.38089910. ii. classification of Bio Fertilizers of Plant and Animal Origin a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the products and the said product is required to be classified as plant growth regulator under Chapter 38. Which is incorrect as detailed findings of the Adjudicating Authority very clearly spelt out how the contents of the product placed a very vital role which Zinc Sulphate (Agriculture Grade) and has been correctly classified under Chapter 28; CBEC by Circular No.1022/10/2016-CX dated 06.04.2016 has clarified that Single Micronutrients are classifiable under Chapter 28 or 29. It is his further submission that this Bench has been taking a constant stand that Micronutrients cannot be classified under CETA 3105. 6. Learned Departmental Representative reiterates the findings of the Lower Authorities in the appeals filed by the assessee while in the Revenue's appeal, he contents the adjudicating authority has erred in reclassifying the products under Chapter 28 as it is an admitted fact that product is Micronutrient containing Zinc Sulphate. 7. On careful considerations and submissions made by both sides, we find that as regards the classification of product Micronutrient under Chapter No.38 of the Central Excise Tariff, we find that the said classification was conteste ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 31, it contains N, P or K, it will be classifiable under Chapter Heading 31. 8.3 In the cases before us, proceedings have been initiated by department referring to these circulars and alleging that Nitrogen is present in the impugned goods of the respondents in smaller quantity only, in the form of diamine and the goods will not function as nutrients since Nitrogen present does not function as a nitrogenous as nitrogen is not released. Department also took the view that the impugned goods are one or more combination of micronutrients stich as compound of zinc, Boron, Manganese etc. which are required in smaller quantities to regulate plant growth to alter life process of the plant so as to accelerate growth yield and improve quality and hence the products are classifiable as plant growth regulators under chapter 38.08 only. We find that the same arguments have been put forth by the department in the grounds of appeal. 8.4 For better understanding of various contending classifications, the CETA heading Nos.38.08 and 3105 are reproduced below: CETH 38.08 Insecticides, rodenticides, fungicides, herbicides, anti-sprouting products and plant growth regul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s or potassium should be an essential constituent of the fertiliser. Board has also clearly differentiated plant growth regulators 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 micronutrients etc. shall be governed by the present circulars. 8.7 As per the aforesaid CBEC circular dated 06.04.2016, plant growth regulators are defined as organic compounds other than nutrients that effect the physiological processes in plants, by hormonal action in promoting inhibiting or modifying growth and development. On the other hand, micronutrients, as explained in the very same circular, are nutrients, like iron, Manganese, Zinc, Copper, Boron etc., that are required in small quantities for the normal and development of plants. Micronutrients thus cannot modify inhibit retard the growth of plants like plant growth regulators, they only promote normal growth. 8.8 Applying the above findings, it clearly emerges that the impugned products definitel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rients viz., salts of Iron, Calcium, Copper, Zinc etc. which were procured in bulk and re-packed into smaller packages/bags and sold. The assessee were classifying the said products under chapter heading 3105 of the first schedule to the Central Excise Tariff, Act, 1985. The product manufactured and cleared by them was 'Zinc Sulphate - Agricultural Grade , falling under the CET 283329, which is fully exempt from Excise Duty, vide Notifications issued from time to time. [Notification No.04/2006 dt. 01.03.2006 amended by 36/2007-CE dated 09.10.2007 (Sl. No.51A) and 12/2012 dated 17.03.2012 (Sl. No.103)] zinc Sulphate manufactured was with 33% purity and was packed clearly mentioning that the some was meant for agriculture usage. There was nothing to suggest in the SCN that the Zinc Sulphate manufactured was not of agricultural grade used as micro-nutrient . The issue with regard to the classification of micronutrients was clarified by the Board vide circular No.392/25/98-CX dated 19.05.1998 detailed supra, wherein it was clearly brought out that the specific exclusion of separate chemically defined compounds as laid down in the HSN Explanatory Notes to Heading 3105.90, must b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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