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TMI Blog2023 (12) TMI 191X X X X Extracts X X X X X X X X Extracts X X X X ..... ll as expert opinion, it is apparent that Nitrogen is added deliberately in the process simultaneously, along with Zinc Oxide, as also EDTA acid. Therefore, Nitrogen is not an in situ development rather it is part of the manufacturing process and Nitrogen remains in the product even after the reaction is over, as confirmed by the test report of the final product. Therefore, even if it is a micronutrient or plant growth regulator essential for providing Zn, since it also contains fertilizing element i.e., Nitrogen also, it would be more appropriately classifiable as other fertilizers . Whether nitrogen is used as fertilizer or otherwise or whether it is intended to be used as fertilizer or otherwise? - HELD THAT:- Admittedly, it is an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tled to the CVD exemption, by considering the said product as Ethylenediamine and its salts . 2. The Respondent imported EDTA Zinc 12% classifying it under CTH 3105 9090. However, the Department classified the goods under CTH 2921 2100 and also denied CVD exemption by considering the same as Ethylenediamine and its salts . Aggrieved by the said assessment, the Respondent preferred an Appeal to Commissioner (Appeals), who remanded the matter back to the assessing officer, who in turn again passed a speaking Order without considering the requested classification by the Respondent. 3. The Respondent preferred an Appeal against the OIO No.232/2011 dated 05.08.2011 before the Commissioner (Appeals), who held that the item EDTA Zinc 12% i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng but a Oxygen function amino compound and therefore, appropriately covered under CTH 2922 4990. They have also relied on US Trade Commissioner ruling and Harmonized Tariff Schedule to support that the compound Zinc disodium Ethylenediaminetetraacetate salt (Zn-EDTA) is also known as Sequestrene Na2Zn, which is used as fertilizer ingredient. It is also a chemical compound satisfying Note 1(a), Note 4 and Note 5(c)(3) to Chapter 29. According to Revenue, the product s chemical formula is C10H12ZnN2Na2O8. They have also relied on Chapter Note 6 to Chapter 31 which states that for the purpose of classification under CTH 3105, the goods should contain as an essential constituent, one of the fertilizing elements i.e., N, P, K and even though ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... centration, etc., to get finished product. The composition of the finished product is as under: i) Zinc contents 12% minimum ii) Nitrogen contents 5.4% minimum iii) Water contents 8% maximum iv) Water insoluble 0.05 maximum 7. According to the manufacture, this is not a single chemical compound of known structure and in fact, it is a product, which is a mixture of several compounds obtained after a series of processes. It is also clarified that Zin- EDTA 12%, is agriculture grade and that the process would clearly show that there has been a deliberate addition of 12% of Zinc and 6.5% of Nitrogen in order to facilitate uptake of these nutrients in the most efficient manner. The Nitrogen in the EDTA Zinc 12% is not an i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tely added during or after the manufacture are excluded from Chapter 29 and the product in dispute contains Zinc, Magnesium, Iron, which is deliberately added and therefore, the item would fall under CTH 3105 90. In the case of Caress Industries (supra), the Tribunal held that the micronutrient mixtures are classifiable under CTH 3105 90 as other fertilizer and not as a plant growth regulator . Relying on the CBEC Circular No. 1022/10/2016-CX dated 06.04.2016, the Tribunal, in the case of Aries Agrovet Industries Ltd (supra), wherein the Assessee was manufacturing LEO brand chelated Zinc , found the item to be more appropriately classifiable under CTH 3105 and not as micronutrient under Chapter 38. Assessee s reliance on Caress Industri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ading applies only to a product of a kind use as fertilizer and containing as an essential constituent, at least one of the fertilizing agents i.e., N or P or K. In the present case, the essential constituents are Zinc (12% Minimum) Nitrogen (5.4% Minimum). Therefore, it cannot be said that Nitrogen is not an essential constituent in the product, by virtue of its presence in the product. The next issue would be whether it is used as fertilizer or otherwise or whether it is intended to be used as fertilizer or otherwise. Admittedly, it is an agriculture grade product, where the Revenue has also provided the IS standard meant for agriculture grade Zinc-EDTA. IS standard for chelated Zinc for agricultural use (IS 13921:1994), inter alia, pro ..... X X X X Extracts X X X X X X X X Extracts X X X X
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