9911796707
TMI Blog2018 (7) TMI 985X X X X Extracts X X X X X X X X Extracts X X X X ..... Hon ble Shri Madhu Mohan Damodhar, Member ( Technical ) Shri R. Subramaniyan, AC (AR) for the Appellant Shri J. Shankaraman, Advocate for the Respondent ORDER Per Bench Brief facts are that respondents are engaged in manufacture of white crystal sugar and molasses in their Bio-lab situated in a place opposite to the factory. They have produced certain Bio-products from the mother culture of micro-organisms purchased from Tamil Nadu Agricultural University, Coimbatore and Sugar Cane Breeding Institute, Coimbatore. These Bio-products, namely, 1. Azospirillum 2. Phosphobacterium 3. VAM 4. Beauvemet 5. Trichoderma Viride 6. Pseudomonas Fluorescens, are mixed with talc powder and sold to the sugarcane growers for developing soil fertility , pest control and disease management of the plant. Show Cause Notice dated 20.04.2009 was issued to the appellants proposing to classify these Bio-products as Plant Growth Regulators and falling under CSH 380820, attracting duty. Vide notification No. 2/2008 dated 01.03.2008, the duty is reduced from 16% to 14%. After due process of law, the original authority confirmed the demand of ₹ 30,70,342/- along with interes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. 32/2009 dt. 18.12.2009 1.12.2008 to 31.8.2009 04/2010 DC (Erode-II) dt. 28.5.2010 3,09,902/- Set aside by O/A 76/2010 (CE) (SLM) dt. 15.12.2010 It is explained by him that the Bio-lab of the company purchases certain formulations containing high number of micro-organisms from the Tamil Nadu Agricultural University at Coimbatore. These latent micro-organisms were allowed to grow under certain laboratory conditions. Resultant broth is mixed with the inert talc powder of 200 microns and the mixture is allowed to cure at room temperature. Subsequently, the broth and admixture with talc, is packed with LDPE bags and stored in an air conditioned atmosphere when the living micro-organisms have the ability to multiply and generate into large numbers. In terms of chemical names, the micro-organisms would be termed Azospirillum Phospho-bacteria Vesicular arbuscular mycorrhiza (VAM) Beauveria Trichoderma Viride pseudomonas 4. The Commissioner (Appeals) has given details of all these micro- organisms in the impugned ord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3808 93 50 --- Weedicides and weed killing agents kg. 16% 3808 93 90 --- Other kg. 16% 3808 94 00 --- Disinfectants kg. 16% 3808 99 -- Other: 3808 99 10 --- Pesticides, not elsewhere specified or included kg. 16% 3808 99 90 --- Other kg. 16% And the tariff heading with regard to 3002 is :- 3002 Human blood; animal blood prepared for therapeutic Prophylactic or diagnostic uses; antisera and other blood Fractions and modified immunological products, whether or not obtained by means of biotechnological processes: vaccines, toxins, cultures of micro-organisms (excluding yeasts) and similar products 3002 10 - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anically fighting harmful bacteria and fungi. The procedure was termed bio-control. The microbes did not directly act on pests like conventional pesticides. As per HSN notes the microbes had to be classified under CH 3002. 9. SDR brings to our notice the material on the website of Stanes i.e. www.tstanes.com and submits that the microbes are advertised unambiguously as insecticides/fungicides by the assessee. 10. We have studied the case records and submissions by both sides. The issue involved is classification of five products namely, Bio-Cure (F), Bio-Cure (B), Bio-Catch), Priority and Bio-Power. These are cultures of microbes (bacteria and fungi) prepared and sold on carriers such as tapioca powder and oats. Department had initially sought to classify them as fertilizer under CH 3101. The original authority decided them to be not fertilizer as the entry CH 3101 covered only chemical fertilizers. These preparations had no chemicals present in them. Vide Order-in-Appeal No. 40/25 dated 28-2-05 passed in appeal against the above order, Commissioner (A) had observed as under : It is seen that in the appellant s case, the end products were in fact spores of fungus an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tisera and other blood fractions and modified immunological products, whether or not obtained by means of biotechnological processes; vaccines, toxins, cultures of micro-organisms (excluding yeasts) and similar products 3002 10 - Antisera and other blood fractions and modified immunological products, whether or not obtained by means of biotechnological processes : .. 3002 90 - Other : 3002 90 10 --- Human blood 3002 90 20 --- Animal blood prepared for therapeutic, prophylactic or diagnostic uses 3002 90 30 --- Cultures of micro-organisms (excluding yeast) HSN Explanatory notes to Chapter 3002 clarifies that the heading includes cultures of micro-organisms for technical purposes (eg. for aiding plant growth). Whether the microbes aided plant growth was a biological question, the Commissioner (Appeals) had left to the original authority when he had passed the Order-in-Appeal No. 40/05 dated 28-2-05. This is answered in the affirmative by the original authority. We note that his finding is correct. It is significant that the note on coverage of microbes under CH 3002 does not restrict it to those that serve as fertilizers but broa ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
