TMI Blog2018 (4) TMI 1346X X X X Extracts X X X X X X X X Extracts X X X X ..... its very nomenclature, indicates nothing but their usage; these are intended for use in agriculture for ensuring better yield of crop. The explanatory notes to the Harmonized System of Nomenclature for chapter 31 excludes ‘separate chemically defined compound’ but does not exclude those answering to descriptions in note 2A, 3A, 4A or 5. A common feature of these negative exclusions is that they should not be put up in forms and packages described in heading 3105. The exclusion for separately defined chemical compound from chapter 31 is but natural as fertilisers are also indisputably inorganically chemicals or inorganic compounds. Hence such separate chemically defined compound that are not intended for use as fertilizer would, by de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... According to the importer, these are nitrates or phosphates while Revenue seeks to exclude the goods from coverage under chapter 31 by reference to note 6. 2. According to Revenue, with exclusion from chapter 31, the only possible classification for the goods is under chapter 28 leading to the demand for differential duty. Learned Authorised Representative refers to the Explanatory Notes and circular no. 44/2001 dated 6th August 2001 which excludes certain chemically defined compound from classification under chapter 31 even though the find use as fertilizer. Furthermore, it is her contention that, owing to the existence of specific entries, viz, calcium nitrate and potassium nitrate , a residual or general entry cannot be adopted o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mixtures or salts where Calcium Nitrate is one of the constituents. Calcium Nitrate on its own, as a single product shall he classified under Chapter 28 whereas Calcium Nitrate along with other salt shall be classified under Chapter 31. The Circular 44/2001 covers Calcium Nitrate as a single product only. This Circular is not applicable to mixtures or compounds. Such mixtures shall be classified under Chapter 31. 4. The circular relied upon by Learned Authorised Representative has limited application. The Tribunal, in disposing of the appeal in the Vardhaman Fertilizers and Seeds Pvt Ltd, held that 6. Having heard both the sides, we find that the dispute lies within the narrow compass of ascertaining whether the imported goods ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sulphate. Colourless crystals, soluble in water. Used as a yeast nutrient and as a fertilizer. 8. The decision relied upon by Revenue in re Pioneer Agritechoscan Exports Pvt. Ltd. refers to calcium nitrate which was declared for import under 31.05 which is a residuary heading whereas the present import claimed classification under 3105.60 which is a heading as specific as in Chapter 28. In the referred decision, emphasis has been placed on the Chapter Note 1(b) which has certain exclusions that would enable classification within the ambit of Chapter 28. In the context of the present import, that particular line of reasoning may not provide the answer. The goods listed in Note 2(A), 3(A), 4(A) or 5 to which Note 1(b) refer are inte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... these are intended for use in agriculture for ensuring better yield of crop. Though the expression fertiliser is an umbrella description, the specific goods that constitute fertilisers are enumerated therein. It is universally accepted that there are three basic fertilizing elements - nitrogen, phosphorus and potassium - each of which makes a particular attribution to the yield. The explanatory notes to the Harmonized System of Nomenclature for chapter 31 excludes separate chemically defined compound but does not exclude those answering to descriptions in note 2A, 3A, 4A or 5. A common feature of these negative exclusions is that they should not be put up in forms and packages described in heading 3105. In other words, as long as they a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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