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TMI Blog2024 (11) TMI 982X X X X Extracts X X X X X X X X Extracts X X X X ..... bsequent to the impugned order, the issue regarding classification of goods between Chapter 31 and Chapter 38 was referred to the Larger Bench in the case of PI Industries (the Principal Manufacturer itself). It is seen that while the products in the instant case are not identical but similar in nature, therefore, the principles laid down by Larger Bench of Tribunal in the case of PI Industries would equally apply to the product in the instant case. In view of above, the impugned order is set aside and matter remanded to the original adjudicating authority for fresh decision in the light of observations made by Larger Bench in the case of PI Industries. Appeal is allowed by way of remand. - HON'BLE MEMBER (JUDICIAL), MR. RAMESH NAIR And HON'BLE MEMBER (TECHNICAL), MR. RAJU Ms. Sonia Gupta, Mr. Ashok Dhingra, Rohan Thakkar, Advocates for the Appellant Shri A.R. Kanani, Superintendent (Authorised Representative) for the Respondent ORDER RAJU This appeal has been filed by M/s Vimal Crop Care Private Limited against order of Commissioner (Appeals). 2. Learned counsel for the appellant pointed out that they are engaged in manufacture of insecticides, fungicides, herbicides and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3101 0099 remains the same under Central Excise Tariff. He pointed out that the classification of Acadian Seaplants under Customs Tariff heading 3101 0099 was accepted after litigation of more than 13 years. The said order classifying the goods under heading 3101 0099 has been accepted by the custom authority and the provisional assessment done for the period February 23, 2010 to Match 27, 2021 has been finalised. The PD bond has been discharged and bank guarantee has been released. 2.2 As regards, the dispute at hand which relates to Biovita manufactured by the appellant by spraying Biovita Liquid on bentonite powder, the learned counsel claimed that the correct classification would be under CETH 3101 of the Central Excise Tariff in terms of the order of Commissioner of Central Excise and Customs-Surat-II No. 05-09/DEM/2007 dated November 27, 2007. Learned counsel argued that both air cargo complex at Mumbai and Nhavasheva port have accepted the classification of Acadian Seaplants Powder under Customs Tariff Heading 3101 0099 and therefore, the attempt to classify the goods under Chapter 38 by Revenue is misplaced. 2.3 Learned counsel relied on the Fertilizer Control Order under S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ess; ( emphasis supplied ) 2.4 He argued that the definition given in Fertiliser (Control) Order, carry a considerable weight in view of the fact that the terms fertilizer , bio fertilizer , biostimulant , are not defined under Central Excise Tariff. He also relied on the decision of Tribunal in the case of Northland Industries 1988 (37) ELT 229 (Tri.). learned counsel argued that terms fertiliser includes in its ambit biostimulants which in common parlance are also called bio-fertilizer , plant growth promoters, plant growth enhancers which provide nutrition and strength to plants so that they can grow more healthy, become immune to environmental vagaries, bear good quality fruit, increased immunity towards diseases etc. He argued that, Biovita, being a bio-stimulant, is correctly classified as fertilizer under heading 3101 of the Central Excise Tariff. He also relied on the decision of Larger Bench of Tribunal in the case of PI Industries in Appeal No. 10081 of 2013. He argued that the said decision holds that Bio-stimulants are fertilizers classifiable under heading 3101 of Customs Tariff and not in heading 3808 as plant growth regulators. 3. Learned Authorised Representative re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 08 93 40 Insecticides, rodenticides, fungicides, herbicides, anti-sprouting products and plant-growth 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) -- Herbicides, anti-sprouting products and plant-growth regulators --- Chloromethyl phenozy acetic acid (M.C.P.A.) --- 2:4 Dichloro phenozy acetic acid and its esters --- Gibberellic acid --- Plant growth regulators Kg. Kg. Kg. Kg. 8% 8% 8% 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. Industries and Agro Pack and the learned authorized representative appearing for the department have to be considered. 32. The Division Bench, while referring the matter to the La ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her 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 macro-nutrient 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 make foliar applications of the plant nutrients. 38. It is also important to notice that plant growth regulators are also used for soil and foliar applications. The EU Explanatory ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... macro-nutrients. 44. It cannot be doubted that both Siapton 10L and Isabion are bio-stimulants, 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 Ministry has clearly expressed that bio-stimulants would exclude plant growth regulators, the definition would certainly provide guidance. 46. Fertilizers and plant growth regulators ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng physiological processes. Both are vital tools in modern agriculture to optimize plant growth and maximize crop yields. 47. 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 patterns and responses. Application (i) Fertilizers are applied to ensure a consistent supply of nutrients throughout the growing season. They can be applied before planting, during g ..... X X X X Extracts X X X X X X X X Extracts X X X X
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