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2018 (7) TMI 162 - AT - Central ExciseClassification of manufactured goods - Kelp-G Purakelp EC, K-Humate 3% Granules- K-Humate and Multiplex-G-Purakelp & K-Humate - The Department felt that the products manufactured by the appellants were plant growth regulators (PGRs), whereas the appellants maintained that they were manufacturing vegetable bio-fertilizer - Held that:- The report of the Chemical Examiner, which was admittedly done in respect of only one of the three products in question, merely states that the product is answering the test of amino acids. However, their exact profile and composition could not be ascertained. On the basis of the literature, which states that one of the ingredients is plant growth hormone, the report concludes that the product is a plant growth regulator. Clearly, the report is inconclusive and the conclusion that the product is plant growth regulator has been made on the basis of literature without paying attention to other ingredients and the nature of application and mode of action of the product. Board had issued a Circular dt. 06.04.2016 on the subject of classification of fertilizers, micronutrients and plant growth regulators in which it was clarified that notifications issued under the Fertilizer (Control) Order 1985 are not relevant for deciding the classification of Central Excise Tariff. Revenue has not been able to rebut the contention of the appellants that the products are not applied directly to the plant and are mixed with soil or clay to make them useable - also, Chapter 38 covers the plant growth regulators which are ‘separate chemically defined elements or compounds’. The CRCL test report has failed to establish that the product is a separate chemically defined element or compound and the same is not forthcoming from the literature as well. The conclusion in the impugned order that the products are plant growth regulators is not sustainable - appeal allowed - decided in favor of appellant.
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