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2017 (5) TMI 1186 - CESTAT NEW DELHIClassification of goods - Magnesium Sulphate - eligibility to exemption as Fertilizer/Micronutrient - classified under Chapter 28 as in organic chemical compound or under CETH 3105 as “other fertilizers” - Held that: - It is stated that in trade parlance sale of micronutrient as “micronutrient fertilizer” would not lead to classification thereof under Chapter 31 as fertilizers for the purposes of Central Excise Tariff. For classification under Chapter 31, at least one of the elements, mainly nitrogen, phosphorous or potassium should be an essential component of the fertilizer as per note 6 of Chapter 31. It was further clarified there is no specific heading in the tariff for classification of micronutrient. However, where the micronutrient is a separate chemically defined compound, it will be classifiable under the heading for that chemically defined compound, under Chapter 28 or Chapter 29. There is no evidence that they were filing any returns during the relevant time. On claim regarding registration made by the appellant, we have seen the registration in form R-2. The said registration stipulates Magnesium Sulphate Micronutrient fertilizer for the purpose of procurement of excisable goods used for special industrial purpose under erstwhile Rule 192. In any case registration certificate was issued by the Department, based on the application made by the appellant, before starting the manufacture. This by itself does not decide the correct classification of the product. In respect of repeat SCN for subsequent period, we find no justification for invoking provisions of Section 11A (1) proviso, for extended period and also for imposing penalty u/s 11AC of the CEA, 1944. Appeal disposed off - decided partly in favor of appellant.
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