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2018 (6) TMI 1070 - AT - Central ExciseClassification of goods - plant growth regulators - ‘Agromin’ - ‘Chelamin’ - ‘Chelafir’ - whether classifiable under heading no. 3808 20/3808 30 40 of First Schedule of the Central Excise Tariff Act, 1985 or under heading no. 3105/3105 90 90 of the Schedule? - Held that:- There is no dispute that the three products are ‘micronutrients’. It is also clear that ‘micronutrient’ is not a specific entry in the Schedule. Therein lies the nub: owing to privileged treatment accorded to ‘fertilizers’, manufacturers would prefer to classify ‘micronutrients’ as ‘fertilisers’ with Revenue preferring to deny them that privilege. The dispute is not about the fitment of the description of the goods over the description in the Schedule and is characterised by culling out aspects of rival descriptions, circulars and judicial decisions to suit the claims on the rate to be adopted. Considering the unwillingness of the executive to notify its intentions and our conclusion that it is not the conformity with the description that has led to the dissonance, we take it upon ourselves to go to the root of the issue. The ‘fertilizers’ and ‘pharmaceuticals’ are favoured enough to merit separate chapters on their own, justified by their importance for the human race. At the same time, they, being chemicals, are ensconced in section VI of the Schedule to the Central Excise Tariff Act, 1985, i.e. PRODUCTS OF CHEMICAL AND ALLIED INDUSTRIES – reflecting strict adherence to the arrangement of goods in the Schedule. The section, commencing with organic chemicals and inorganic chemicals, recognises that ‘fertilizers’ and ‘pharmaceuticals’ may fall under either and acknowledges that they are to be distinguished from their doppelganger in the other two chapters. We are unable to approve of the proposition made on behalf of Revenue that the classification claimed should have been rejected. Rejection of a claimed classification is not an end in itself as duty liability can be computed only after application of the rate legislated by Parliament to the appropriate value. The presence of nitrogen in chelates is sufficient to bring it within the ambit of heading 3105 of First Schedule of the Central Excise Tariff Act, 1985 owing to its indispensability despite the negligibility of the quantity. Classification under heading 3105 claimed by the manufacturer cannot be denied to them. We find no merit in the challenge to classification of ‘Agromin’, ‘Chelafer’ and ‘Chelamin’ and dismiss the appeal of Revenue to that extent - appeal disposed off.
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