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TMI Blog2024 (9) TMI 1655X X X X Extracts X X X X X X X X Extracts X X X X ..... When plant nutrients are applied by foliar application, smaller quantities of fertilizer materials are required when compared to application through the soil. Upon foliar application of the macronutrient fertilizer, the nutrients enter the leaves through the stomata, correct the disorders, and improve the yield and quality of the produce. Urea is generally suitable for foliar application owing to its high solubility, ease, and quick absorption by the plant tissue - It is an undisputed fact that plants absorb nutrients through their roots or foliage. Generally, in situations where soil conditions are not favorable, it is desirable to make foliar applications of the plant nutrients. It is also important to notice that plant growth regulators are also used for soil and foliar applications. The EU Explanatory Note to ETI 3808 93 90 makes it aptly clear that the plant growth regulators can be applied to the whole plant or parts of the plant or to the soil - the test based on mode of application would not be a correct test. Whether the two products, namely, Siapton 10L and Isabion are fertilizers or plant growth regulators? - HELD THAT:- P.I. Industries has stated that the product Siapto ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... plant. They do not alter the physiological processes in a desired direction. In other words, the amino acids and the nitrogen present help in cell building exercise, and thereby, help the plant grow using the nutrients (nitrogen, phosphorus and potassium). Therefore, the two products Siapton 10L and Isabion are in the nature of fertilizers (bio-stimulants) and not plant growth regulators. The aforesaid discussion leads to the inevitable conclusion that the Division Bench, while referring the matter to the Larger Bench, was not justified in distinguishing the earlier decision of the Tribunal in Northern Minerals [ 2001 (5) TMI 74 - CEGAT, COURT NO. III, NEW DELHI ]. The two products, namely, Siapton 10L and Isabion deserves classification as fertilizers under ETI 3101 00 99 and not as plant growth regulators under ETI 3808 93 40. The reference is answered, accordingly. The papers may be placed before the Division Bench of the Tribunal to decide the appeals on merits. - Hon ble Mr. Justice Dilip Gupta, President, Hon ble Mr. C.J. Mathew, Member (Technical) And Hon ble Mr. Ajay Sharma, Member (Judicial) For the Appellant : Shri Ashok Dhingra, Ms. Sonia Gupta and Shri Samarth Katare ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... paid by P.I. Industries since it had classified the product as a fertilizer under ETI 3101 00 99 of Chapter 31. 5. Likewise, Agro Pack also undertook re-packing of the product from bulk quantity into retail packs and since it claimed that the product was classifiable under ETI 3101 00 99 of Chapter 31 and not under ETI 3808 93 40, it did not pay central excise duty. 6. During the course of hearing of Excise Appeal No. 10081 of 2013 filed by P.I. Industries, learned counsel for P.I. Industries placed reliance upon the decision of the Tribunal in Northern Minerals Ltd. vs. Commissioner of C. Ex., New Delhi [2001 (131) E.L.T. 355 (Tri.-Del.)]. In this case, the product Dhanzyme was classified as fertilizer but it was ordered to be classified as a plant growth regulator by the adjudicating authority. The Tribunal concluded that the Commissioner fell in error in holding that a plant growth promoter was synonymous to a plant growth regulator and held that a plant growth promoter will only promote growth of the plant and will not inhibit it, but a plant growth regulator can inhibit, promote or otherwise alter physiological processes in plant. The Tribunal ultimately observed from the lite ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... quired spray volume. It can be applied using any commonly used high volume sprayers. Continuous agitation is required while spraying. Siapton 10L is compatible with commonly used agrochemicals except Copper fungicides. Siapton 10L can be tank mixed with agrochemicals and plant growth regulators. However, it is not advisable to mix with more than three products. The literature above describes the products as (i) plant bio-stimulant, (ii) an anti-stress agent, (iii) a nutritional equilibrator, (iv) an enhancer in the improved use of macro and micro elements and as an indirect improver of activity of some enzymatic systems to bring about a tremendous boost in quality and quantity of the produce. The literature also describes Siapton 10L as a product produced in the logical consequence of idea to give the plant readily assimilable nutritional and bio stimulant elements, directly through the leaves. It has been argued by the ld. Counsel that to qualify as PGR, the product should be capable of performing three functions namely (i) promote growth, (ii) enable growth and (iii) otherwise modify plant process. ***** From the above discussion it is apparent that it is not necessary for a prod ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Counsel appearing on behalf of the applicant has filed an ORS application for considering the appeal as a intervener/tagging as the matter involving the same issue is referred in the larger bench in the case of Isagro (India) Agrochemicals Pvt. Ltd. in Appeal no. E/10081/2013 and E/11791/2014 vide Interim Order no. I/71-72/2018 dated 24.10.2018. He submits that the issue involved is identical i.e. Classification of micro nutrients. 2. Shri J.A. Patel, learned Superintendent (Authorised Representative) appearing on behalf of the Revenue fairly concedes that the issue involved is identical, i.e. classification of micro nutrients as involved in the matter pending before larger bench of this Tribunal in the case of Isagro (India) Agrochemicals Pvt. Ltd. in Appeal no. E/10081/2013 and E/11791/2014. 3. Accordingly, we place this matter before the Hon ble President to consider for tagging these appeals with the appeals pending before the larger bench in the case of Isagro (India) Agrochemicals Pvt. Ltd. Miscellaneous Application is disposed of in the above terms. (emphasis supplied) 10. To examine the aforesaid issue that has been referred to the Larger Bench, it would be necessary to ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... constitutes physiological processes in plants, recorded the following finding: From plain reading of above extract it is learned that SIAPTON is a Bio-Stimulant. Biostimulants re balance and stimulate metabolic and enzymatic processes of plants. Thus it is again clear that Bio stimulant affects the physiological processes of plants. It is very important to note that nowhere in their website M/s. Isagro, Itlay project their product as Fertilizer. (emphasis supplied) 14. The Commissioner also examined the technical description of Siapton 10L and concluded that bio-stimulant are neither fertilizer nor plant growth promoter but are plant growth regulators. The findings are as follows: 18.6 From the discussions in foregoing para, it can be safely concluded that the Bio-stimulants are neither fertilizer/plant growth promoters, nutrients nor pesticides; that they are applied in small quantities; that they influence various metabolic/physiological processes in plants; that they have been equated with Plant Biochemical Regulators and Plant Growth Regulators . I find the PGR can either - inhibit the plant growth Or - promote the plant growth. Or - otherwise alter physiological processes in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Control Order No. 1985 as fertilizers. d) The sample is a mixture of proteins and Amino Acids which regulates the plant growth. e) The sample u/r can be considered as plant growth regulator. In view of above report also, I find that the product SIAPTON 10L is not a fertilizer but it is a growth regulator. (emphasis supplied) 15. In paragraph 13 of the Appeal Memo, P.I. Industries has described Siapton 10L in the following manner: ***** the product of the present appellants has Amino-acids and Amino-acids alone. 54% of the product is pure amino-acids whereas the remaining ingredients are what are called peptides and micronutrients. Peptides are nothing else but short chain amino acids. In other words, almost 86% of the product is amino-acids of one form or the other ***** 16. P.I. Industries has placed the test report dated 01.03.2011 submitted by Doctors Analytical Laboratories Pvt. Ltd., Pune. It reports that Siapton 10L is not a plant growth regulator. The report is reproduced below: Doctors Analytical Laboratories Pvt. Ltd., Pune TEST REPORT Date: 01/Mar./2011 Customer Name Address Isagro Asia Agrochemicals Pvt. Ltd., Plot No. 640, GIDC, Panoli-394116, Dist. Bharuch, Gujarat, In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as fertiliser. ***** WHAT SIAPTON 10L is: SIAPTON 10L is a product based on organic nitrogenous compounds (amino acids and peptides) derived from animal by-products. So, also according to the above mentioned definitions, it must be considered as a nitrogen based fertiliser with nitrogen in organic form only, incorporated in amino acids and peptides. ***** WHAT SIAPTON 10L IS NOT A PPP NOR PLANT GROWTH REGULATOR SIAPTON 10L is not a PPP because it does not control any disease of any kind. As far as a PGR action is concerned, there is no doubt that the actions of SIAPTON 10L (and of the amino acids and peptides from animal by-product) are various; the product acts on improving growth and overcoming stress situations. It improves for example nitrogen assimilation. NOTABLY, THESE ACTIONS ARE TYPICAL OF FERTILISERS; IN NO WAY SIAPTON 10L CAN BE INCLUDED IN THE GROUP OF PRODUCTS UNIVERSALLY RECOGNISED AS PLANT GROWTH REGULATOR In fact, a PGR is defined as an organic compound, either natural or synthetic, that modifies or controls one or more specific physiological processes within a plant . A further definition is : plant growth regulators (also known as growth regulators or plant natura ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct, 1985 (Herbicides, anti sprouting products and plant growth regulators and similar products). The said product appears to fall under the sub-heading No.3808 93 40 and the valuation is to be done as per Section 4A of Central Excise Act, 1944 i.e. Central Excise duty is payable on MRP/RSP basis (as applicable at the relevant period) allowing for such abatement as given under Third Schedule of CETA. The details of month wise manufacture and clearance and duty payment details for ISABION for the period from 2009-10, 2010- 11 2011-12 are shown in the Annexure- A attached to this show cause notice. (emphasis supplied) 21. The relevant portion of the order dated 04.03.2013 passed by the Commissioner is reproduced below: 32.4. I have gone through the description of Isabion , as discussed in forgoing paras and the facts that emerged are - It mainly constituent organic fraction. - It is used directly through leaves. - It is used as organic bio-stimulant of roots, leaves, flowers and fruits on every kind of crops and recommended during the active growth phases of the production cycle i.e. they alter the physiology of various parts of plants. - It helps in mitigating the damage done by hail ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... peptides and free amino acids. ISABION is immediately and completely taken up by the plant, both in application by foliar spray or by soil irrigation. ISABION is recommended as an organic bio-stimulant of roots, leaves, flowers and fruits or every kind of crops: Fruit trees- Citrus trees, Grape Vines, Mango other Fruits, Vegetables- Tomato, Brinjal, Cole crops, Potato, Chilli, Cucurbits, Onion, All Leafy Vegetables. Field Crops- Cereals, Pulses, Oilseeds, Cotton, SugarBeet, Flowers and Ornamental crops. ISABION is recommended during the active growth phases of the production cycle, in nurseries and in young plantations. ISABION helps the crops in mitigating the damage done by hail, phyto- toxicity, parasites and diseases, drought, etc. Dosage rates and use: ISABION has a flexibility of usages as foliar spray, soil application or fertigation. The number of applications timing depends on the crop, however application at the time of transplantation, flowering, fruit-setting, ripening are the most important. Foliar spray: 200-300 ml/100 L of water (For more details on application refer attached Isabion Booklet). Chemical Composition: Organic fraction derived from amino acids, peptides ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts, including plant growth regulators and the relevant entries are: Tariff Item Description of goods Unit Rate of duty (1) (2) (3) (4) 3808 Insecticides, rodenticides, fungicides, herbicides, antisprouting products and plantgrowth regulators, disinfectants and similar products, put up in forms or packings for retail sale or as preparations or articles (for example, sulphur- treated bands, wicks and candles, and fly-papers) 3808 93 -- Herbicides, anti-sprouting products and plant-growth regulators 3808 93 10 --- Chloromethyl phenozy acetic acid (M.C.P.A.) Kg. 8% 3808 93 20 --- 2:4 Dichloro phenozy acetic acid and its Esters Kg. 8% 3808 93 30 --- Gibberellic acid Kg. 8% 3808 93 40 --- Plant growth regulators Kg. 8% 30. It would be seen that the description of goods under ETH 3101 is animal or vegetable fertilizers while the description of goods under ETH 3808 are insecticides, rodenticides, fungicides, herbicides, anti-sprouting products and plant-growth regulators, disinfectants and similar products. Plant growth regulators are described under ETI 3808 93 40. 31. It is in the light of the aforesaid that the submissions that have been advanced by the learned counsel appearing for P.I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nciple nutrient commonly used for this purpose. Potassium and highly soluble forms of zinc and iron can also be readily applied this way. When an element forms precipitate with another substance commonly found in the irrigation water, it is not advisable to use this method. Phosphorus and anhydrous ammonia may form a precipitate in water with high calcium and magnesium content. So they are not used in fertigation. Normally, this system is used through drip irrigation, and liquid fertilisers containing all three major nutrients are normally used. 36. When plant nutrients are applied by foliar application, smaller quantities of fertilizer materials are required when compared to application through the soil. Upon foliar application of the macronutrient fertilizer, the nutrients enter the leaves through the stomata, correct the disorders, and improve the yield and quality of the produce. Urea is generally suitable for foliar application owing to its high solubility, ease, and quick absorption by the plant tissue. 37. It is an undisputed fact that plants absorb nutrients through their roots or foliage. Generally, in situations where soil conditions are not favorable, it is desirable to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat Isabion contains 58% free amino acid with nitrogen, phosphorus and potassium content as 11.24%, 00.37% and 0.041%, respectively. These two reports demonstrate the presence of macro-nutrients. 44. It cannot be doubted that both Siapton 10L and Isabion are biostimulants, and indeed the Commissioner has also found as a fact that both these products are bio-stimulants. 45. Bio-stimulants are fertilizers which influence the growth, yield and quality of plants by providing essential nutrients. The Ministry of Agriculture also considers bio-stimulants as fertilizer , and hence, requires compliance of the Fertiliser (Inorganic, Organic or Mixed) (Control) Order, 1985. In this connection, it needs to be noted that bio-stimulants , being a fertilizer, was brought under this Control Order by Order dated 23.02.2021 issued by Ministry of Agriculture and Farmers Welfare. The definition of bio-stimulants contained in the aforesaid Order excludes plant growth regulator, which have been stated to be regulated under the Insecticides Act, 1968. It is true that the aforesaid definition of bio-stimulants was included in the Fertilizer Order by Order dated 23.02.2021 of the Ministry, but as the Mini ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s provide essential nutrients for plant growth and health, while plant growth regulators are chemicals that influence specific aspects of plant growth and development by regulating physiological processes. Both are vital tools in modern agriculture to optimize plant growth and maximize crop yields. 49. The following four aspects would demonstrate the distinction between fertilizers and plant growth regulators. Purpose (i) Fertilizers primarily provide essential nutrients to plants, aiding in their growth, development, and overall health. They ensure that plants have an adequate supply of nutrients for optimal performance. (ii) Plant growth regulators, on the other hand, influence and control specific physiological processes within plants, such as growth patterns, flowering, fruit development, and response to environmental stimuli. Mode of Action (i) Fertilizers work by supplying nutrients directly to the soil or plants, which are then absorbed by the roots and utilized for various metabolic processes within the plant. (ii) Plant growth regulators function by interacting with plant hormones and signaling pathways, altering gene expression, and ultimately modifying plant growth patte ..... X X X X Extracts X X X X X X X X Extracts X X X X
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