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2023 (12) TMI 191 - AT - CustomsClassification of imported goods - EDTA Zinc 12% - to be classified under CTH 3105 9090 with exemption from CVD vide Notification No. 04/2006-CE dated 01.03.2006 or it would fall under CTH 2921 2100 and thereby not entitled to the CVD exemption by considering the said product as Ethylenediamine and its salts ? Whether the product in question can be considered as separate chemically defined compound as Revenue is arguing or otherwise? - HELD THAT - From the manufacturing process as well as expert opinion it is apparent that Nitrogen is added deliberately in the process simultaneously along with Zinc Oxide as also EDTA acid. Therefore Nitrogen is not an in situ development rather it is part of the manufacturing process and Nitrogen remains in the product even after the reaction is over as confirmed by the test report of the final product. Therefore even if it is a micronutrient or plant growth regulator essential for providing Zn since it also contains fertilizing element i.e. Nitrogen also it would be more appropriately classifiable as other fertilizers . Whether nitrogen is used as fertilizer or otherwise or whether it is intended to be used as fertilizer or otherwise? - HELD THAT - Admittedly it is an agriculture grade product where the Revenue has also provided the IS standard meant for agriculture grade Zinc-EDTA. IS standard for chelated Zinc for agricultural use (IS 13921 1994) inter alia provides for certain minimum requirements of Zinc i.e. 12% which is satisfied in this case. Similarly the Fertilizer (Control) Order also classifies chelated Zinc i.e. Zn-EDTA as micronutrient where the minimum content should be 2%. Therefore when the chelated Zinc is treated as fertilizer or micronutrient and when the same is also having other fertilizing component like Nitrogen in substantial proportion (here 6.5%) this needs to be classified as micronutrient fertilizer or other fertilizer in terms of Chapter Note 6 to Chapter 31. The Commissioner (Appeals) had rightly decided the classification of EDTA Zinc 12% under CTH 3105 9090. Accordingly there are no merit in interfering with the Impugned Order - appeal dismissed.
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