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TMI Blog2018 (7) TMI 162X X X X Extracts X X X X X X X X Extracts X X X X ..... t one of the ingredients is plant growth hormone, the report concludes that the product is a plant growth regulator. Clearly, the report is inconclusive and the conclusion that the product is plant growth regulator has been made on the basis of literature without paying attention to other ingredients and the nature of application and mode of action of the product. Board had issued a Circular dt. 06.04.2016 on the subject of classification of fertilizers, micronutrients and plant growth regulators in which it was clarified that notifications issued under the Fertilizer (Control) Order 1985 are not relevant for deciding the classification of Central Excise Tariff. Revenue has not been able to rebut the contention of the appellants that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... port of said sample and a letter issued by the Director of Agriculture, Haryana dt. 27.12.2006 stating that the above products were not fertilizers in terms of the Fertilizer (Control) Order 1985, a show cause notice was issued to the appellants demanding Central Excise duty of ₹ 25,86,505/- along with interest and proposing penalty under Section 11AC of the Central Excise Act, 1944. The matter was adjudicated and the said demand was confirmed along with interest and imposition of equivalent amount of penalty under Section 11AC of the Act. In appeal, the Commissioner (Appeals) upheld the adjudication order and rejected the appeal of the appellants. Aggrieved from the order of Commissioner (Appeals), the appellants have filed this appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tes that the product is answering the test of amino acids. However, their exact profile and composition could not be ascertained. On the basis of the literature, which states that one of the ingredients is plant growth hormone, the report concludes that the product is a plant growth regulator. Clearly, the report is inconclusive and the conclusion that the product is plant growth regulator has been made on the basis of literature without paying attention to other ingredients and the nature of application and mode of action of the product. With the help of Ld. AR , we have gone through the Hindi literature of the products which shows that the product as 100% pure bulk kelp contains nitrogen, phosphorus and potassium. The other two products ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and are mixed with soil or clay to make them useable. In fact, in para 13 of the impugned order it is mentioned that the impugned products are mixed with soil/clay. 6.5 We also note that Chapter 38 covers the plant growth regulators which are separate chemically defined elements or compounds . The CRCL test report has failed to establish that the product is a separate chemically defined element or compound and the same is not forthcoming from the literature as well. 7. In view of the foregoing, the conclusion in the impugned order that the products are plant growth regulators is not sustainable and the order of the Commissioner (Appeals) is therefore liable to be set aside. Accordingly, we do so. 8. In the result, the appeal is a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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