Micronutrient Fertilizer Classified Under CTH 3824 as Phosphorus Not an Essential Constituent: CAAR

By CA Sandeep Kanoi Custom Duty Judiciary January 5, 2026

TaxGuru Citation: 2026 taxguru.in 298
Case Name: In re Yara Fertilizers India Private Limited (CAAR Mumbai)
Appeal Number: Only available for paid members
Date of Judgement/Order: Only available for paid members
Courts: Advance Rulings, CAAR

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In re Yara Fertilizers India Private Limited (CAAR Mumbai)

The Customs Authority for Advance Rulings (CAAR), Mumbai examined the classification of the product marketed as “YaraVita Bud Builder”, described as Magnesium Hydroxide and Zinc Phosphate Micronutrient Fertilizer. The applicant sought a ruling on whether the product should be classified as a fertilizer under Chapter 31, specifically under heading 3105, on the basis that it contains phosphorus, one of the primary fertilizing elements.

The Authority first noted that the issue raised was admissible under section 28-I(2) of the Customs Act, 1962, as it related to classification of goods and was not pending or decided in any other proceedings involving the applicant. Based on the records, technical data sheets, certificate of conformity, and material safety data sheets, the Authority analysed the composition, nature, and use of the product.

It was observed that the product is a beige powder, partially soluble in water, meant for foliar application to improve flowering and nutritional management. The composition showed a predominance of magnesium (24% or more) and zinc (around 10%), which are secondary nutrients and micronutrients respectively. Boron was present in smaller quantities, while phosphorus was present only in a minor proportion, ranging from about 2.5% to 6.9% depending on the document relied upon.

The Authority noted that under the Fertilizer (Control) Order, 1985 (FCO), the product conforms to the parameters prescribed for Magnesium Hydroxide and Zinc Phosphate Micronutrient under Schedule I, Part A, Sl. No. 24, Sub-heading 1(g). However, the Authority emphasized that compliance with the FCO or possession of a fertilizer licence is not determinative for tariff classification under the Customs Tariff Act.

Relying heavily on CBIC Circular No. 1022/10/2016-CX dated 6 April 2016, issued after consultation with the Indian Agricultural Research Institute (IARI), the Authority reiterated that micronutrients, though sold in trade as “micronutrient fertilizers”, do not automatically fall under Chapter 31. For classification under heading 3105 as “other fertilizers”, Chapter Note 6 requires that nitrogen, phosphorus, or potassium must be present as an essential constituent providing the essential character of the product.

The Authority held that in the present case, phosphorus, though present, was not the essential constituent. Its proportion was significantly lower than that of magnesium and zinc, and it did not impart the essential character to the product. The essential character was derived from the predominance of micronutrients and secondary nutrients. The Authority also relied on the HSN Explanatory Notes to Chapter 31, which expressly exclude micronutrient preparations applied to seed, foliage, or soil that contain small amounts of nitrogen, phosphorus, or potassium but not as essential constituents, and classify them under heading 3824.

The applicant’s reliance on earlier CESTAT decisions was rejected on the ground that those cases involved different facts and issues, particularly disputes between headings 38.08 and 31.05, whereas the present case involved a detailed examination of essential character in light of CBIC circulars and HSN notes. The Authority also noted judicial principles that precedents must be applied in the context of their specific facts.

Additionally, the Authority referred to the GST rate schedules, noting that micronutrients covered under Schedule I of the FCO are placed under headings of Chapter 28 or 38, and not under heading 3105, further supporting the conclusion that such products are outside Chapter 31.

Based on the composition, predominance of magnesium and zinc, limited presence of phosphorus, CBIC circulars, Chapter Notes, and HSN Explanatory Notes, the Authority concluded that the product is a micronutrient preparation/mixture, not a fertilizer classifiable under Chapter 31. Since it is a chemical preparation not elsewhere specified or included, it was held to be classifiable under CTH 3824, and more specifically under CTH 3824 99 90 (Others) of the Customs Tariff Act, 1975.

Accordingly, CAAR ruled that “YaraVita Bud Builder – Magnesium Hydroxide and Zinc Phosphate Micronutrient Fertilizer” is classifiable under CTH 3824 99 90.

FULL TEXT OF THE ORDER OF CUSTOMS AUTHORITY OF ADVANCE RULING, MUMBAI

Yara Fertilisers India Private Limited (hereinafter referred to as the “Applicant”), 402, Suyog Fusion Dholc Path Road, Pune, Maharashtra-411 001, a company having PAN No.-AAACY4766C has filed an application seeking an advance ruling under section 28-11 of the Customs Act, 1962 from the Customs Authority for Advance Rulings, Mumbai (CAAR in short) on 02.05.2025. The applicant is seeking advance ruling on import of the product “YaraVita Bud Builder brand name for ‘Magnesium Hydroxide and Zinc Phosphate Micronutrient Fertilizer” (hereinafter referred to as ‘Subject Goods’). The applicant has sought classifiable under Tariff Item 3105 90 90 of the First Schedule to the Customs Tariff Act. 1975 (hereinafter referred to as ‘the Tariff’).

Applicant in its application has informed that Yara Fertilisers India Private Limited is a subsidiary of Yara International ASA, Norway, which is a global leader in agricultural products and environment protection agents including nitrates, calcium nitrate, micronutrients, and Nitrogen, Phosphorus, and Potassium (NPK) Fertilizer.

Further, the Applicant is inter alia engaged in import and distribution of various types of and grades of fertilizer (including micronutrients fertilizers), in India. ‘Mc Applicant has been in this business since the year 2011.

3. Applicant’s submission in respect of the subject goods:

3.1. YaraVita Bud Builder is the brand name of the product “Magnesium IIydroxide and Zinc Phosphate Micronutrient Fertilizer”.

3.2. YaraVita Bud Builder is a fertilizer with macro and micronutrients primarily comprising of Phosphorous, Magnesium, Zinc and Boron. The physical appearance of the fertilizer is a ‘beige powder’ and has partial solubility in water. YaraVita Bud Builder is specifically meant for foliar application and improves flowering and aids in nutritional management. Further, YaraVita Bud Builder is safe for all crops and can be used in tandem with.

3.3. The Applicant imports YaraVita Bud Builder from Yara Asia Pte Ltd., Singapore which is supplied by Yara Pockl (Yara UK Limited, Pocklington). In other words, the Applicant purchases YaraVita Bud Builder from the Supplier and the Supplier in turn places an order to Yara Pockl to have the goods shipped to the Applicant.

3.4. The Applicant submitted that the Supplier is a related party in terms of Rule 2(2) of the Customs Valuation (Determination of Value of Imported Goods) Rules, 2007. The Custom Department on very first import in 2012 had referred the matter to the Special Valuation Branch (`SVB’) vide .File No. S/9-167 GATT/2012 GVC in order to verify the correctness of value declared for goods imported by them. The SVB, after detailed verification had accepted value declared 4s7:transaction ‘value vide Order-in-Original dated 12.06.2013. This Order has been renewed from time to time and accepts the transaction value. The SVB order is valid till date. This fact is undisputed.

3.5. Further, YaraVita Bud Builder is classified under Heading 31.05 of the Customs Tariff, by the Yara UK Pocklington as per invoice, provided by the supplier for a previous shipment.

4. Composition of YaraVita Bud Builder as submitted by the Applicant:

4.1 YaraVita Bud Builder is a mixture of Phosphorus Pentoxide, Magnesium, Boron and Zinc. The specific composition as per the Technical Data Sheet (hereinafter referred to as “TDS”) provided by the supplier is produced herein below:

SI. No.	Chemical Composition	Percentage
1.	Phosphorous Pentoxide	6,9%
2.	Magnesium [Magnesium Oxide]	24% 40%
3.	Boron	3%
4.	Zinc	10%

4.2 The Certificate of Conformity (hereinafter referred to as “COC”) issued in compliance with the FCC Regulation (EC) No. 2019/1009 also states that YaraVita Bud Builder is infer alia comprised of the following nutrients/ micronutrients:

SI. No.	Nature of element	Numerous	Specification % w/w
1.	Primary Nutrients	Phosphorous	2.5
2.	Secondary Nutrients	Magnesium	24.0
3.	Micronutrients	Zinc	10.0

4.3. Further, Material Safety Data Sheet (hereinafter referred to as “MSDS”) of YaraVita Bud Builder under Section 3: ‘Composition / Information on ingredients’, states that it is a `Mixture’ of (a) trizinc bis(orthophosphate) [20- <251 and (b) disodium octaborate tetrahydrate 12.5- <15^–1. Furthermore, Magnesium, Zinc and Phosphorous are present in a recognizable quantity in the entire composition of YaraVita Bud Builder.

5. Compliance with the Fertilizer (Inorganic, Organic or Mixed) (Control) Order, 1985:

5.1 The Applicant has been issued with valid license for import and trade of fertilizers under Fertilizer (Inorganic, Organic or Mixed) (Control) Order, 1985 (` FC0′).

5.2 The Government of Maharashtra, Director of Agriculture (I & QC) Maharashtra State has issued the Applicant with License No. LCFWD2022120892 dated 29.07.24.

5.3 Statement-I of the KO License contains ‘Details of Fertiliser Grades / Sources’ which the Applicant is licensed to import and sell in Maharashtra SI. No. 3 of the License specifically permits the Applicant to import and sell ‘Magnesium Hydroxide and Zinc Phosphate Micronutrient Fertilizer’ i.e., YaraVita Bud Builder, supplied by Yara UK Limited, Pocklington (referred to as `Yara Pockl’ in the license).

5.4 The imported goods arc always supplied to the dealers who have been issued with fertilizer license under FCO. The Appellants always provide end-use declaration at the time of every import of fertilizers, as per the practice adopted at JNCH.

5.5 Schedule I SI. No. 24, Sub-heading 1(g) of Part Al of the FCO covers ‘Magnesium hydroxide and Zinc Phosphate Micronutrient Fertilizer’ under the category of `Micronutrients’.

5.6 Applicant submits that YaraVita Bud Builder conforms with the parameters laid down for ‘Magnesium I hydroxide and Zinc Phosphate Micronutrient Fertilizer’ in SI. No. 24, Sub-Heading 1(g) of Part A of the Schedule I of the FCO. Table below provides the parameters for a Fertilisers to be considered as ‘Magnesium Hydroxide and Zinc Phosphate Micronutrient Fertilizer’:

SI No .	Specific Parameter	Percentage/requirement
1.	Magnesium as Mg per cent. by weight	24.0
2.	Zinc as Zn per cent. by weight	10.0
3.	PH(50gZL)	8.5+/-1
4.	Available Phosphorus as P205, per cent. by weight minimum	2.5

5.7 As detailed in paragraphs above, and upon perusal of the TDS and MSDS, it is evident that the imported goods clearly meet the parameters contained in Si. No. 24, Sub-Heading 1(g) of Part A of the Schedule I of the FCO.

5.8 The Applicants state that they have been importing YaraVita Bud Builder under Tariff Item 2816 10 10, and have approached this Authority in order to have certainty regarding the classification of the same.

6. Classification of subject goods and interpretation of law as per Applicant:

6.1.The subject goods i.e. YaraVita I3udbuilder is classifiable under tariff item 3105 90 90 of the customs tariff.

6.2 At the outset, Applicant submitted that classification of the goods imported into India is to he determined based on the General Rules of Interpretation (hereinafter referred to as the “GRI”) set out in the Tariff. As per Rule 1 of the GRI, classification of the imported products shall be determined according to the terms of the headings and any relative Section or Chapter Notes and, provided such headings or Notes do not otherwise require, according to the remaining Rules of the GRI.

6.3 The Tariff is aligned, up to the 6-digit level, with the Harmonized System of Nomenclature (`IISN’) issued by the World Customs Organization (`WC0′). It has been held by the Hon’ble Supreme Court in the case of Collector of Customs, Bombay vs. Business Forms — 2002 (142) ELT 18 that the I-ISN Explanatory Notes aid in the interpretation of the Headings of the Tariff and may be used as a safe guide for the same.

6.4 The Applicant submits that the imported YaraVita Bud Builder merits classification under Heading 31.05 and specifically under Tariff Item 3105 90 90 as `Other• Periili:ers’. Relevant portion of the I leading 31.05 is reproduced below:

Tariff Item	Description of goods
3105	MINERAL OR CHEMICAL FERTILIZERS CONTAINING TWO OR THREE OF THE FERTILIZING ELEMENTS NITROGEN, PHOSPHORUS AND POTASSIUM; OTHER FERTILIZERS; GOODS OF THIS CHAPTER IN TABLETS OR SIMILAR FORMS OR IN PACKAGES OF A GROSS WEIGHT NOT EXCEEDING 10KG
3 165 1000	God of this chapter in tablets or similar forms or in packages of a gross weight not exceeding 10kg
31052000	– Mineral or chemical fertilizers containing the three fertilizing elements, nitrogen, phosphorus, and potassium
3 1053000	Diammonium hydrogen ortho phosphate (diammonium phosphate)
3 1 054000	– Ammonium dihydrogen ortho phosphate (monoammonium phosphate) and mixtures thereof with diammonium hydrogen orthophosphate (diammonium phosphate)
	– Other mineral or chemical fertilizers containing the two fertilizing elements nitrogen and phosphorus:
	****
3 1 056000	Mineral or chemical fertilizers containing the two fertilizing elements phosphorus and potassium
31 05900	-Other:
	****
31059090	–Other

6.5 Imported goods arc classifiable under Tariff Item 3105 90 90 as ‘Other’ Fertilizers. The Applicant submits that the YaraVita Bud Builder is an ‘other’ fertilizer as defined under Note 6 to Chapter 31. Relevant portion of under Note 6 to Chapter 31 is reproduced herein:

“For the purpose of heading 3105, the term ‘other fertilizers’ applies only to products of a kind used as fertilizers and containing, as an essential constituent, at least one of the fertilizing elements nitrogen, phosphorus or potassium.”

6.6 Therefore, for any fertilizer to qualify the definition of ‘other fertilizers’, the conjunctive requirements of the goods being used as fertilizers; and that the goods contain at least one of the fertilizing elements nitrogen, phosphorus or potassium, as an essential constituent.

6.7 The Applicant submits that YaraVita I3ud Builder is (a) used solely as a fertilizer and;

(b) one of its essential constituents is Phosphorous. YaraVita Bud Builder is recognized and used as a fertilizer:

6.8 The Applicant submits that YaraVita Bud Builder is used solely as fertilizer and is recognised as a fertilizer under the FCO.

6.9 The term “Fertilizer” has not been defined in the Customs Tariff Act, 1975 or in the Schedule thereto.

6.9:1 Reliance is placed on the definition of ‘Fertilizer’ contained in Section 2(h) of the Fertilizer Control Order (FCO) 1985:

“(h) Fertilisers means any essential substance, either in straight or mixed form and derived from either inorganic, organic or mixed sources, that is used or intended to be used to provide essential plant nutrients or beneficial elements or both for the soil or for the crop or makes essential plant nutrients available to the plants either directly or by biological process or by both in the soil or plant as notified from time to time by Central Government and specified in the schedules appended to this order or as may be notified by the State Governments.

Explanation:- For the purpose of Fertilisers,-

(i) “the essential plant nutrients” include Primary Nutrients (Nitrogen, Phosphorous and Potassium), Secondary Nutrients (Calcium, Magnesium and Sulphur) and Micro Nutrients (Zinc, Manganese, Copper, Iron, Boron and Molybdenum);

(ii) “Beneficial element” means any clement as notified by the Central Government from time to time.’;

(iii) in Schedule I, for part A and the entries relating thereto, the following entries shall be substituted, namely: – …”

6.9.2 The Association of American Plant Food Control Officials (AAPFCO) defines ‘Fertilizer’ as under: –

“Any substance containing one or more recognized plant nutrient(s) which is used for its plant nutrient content, and which is designed for use or claimed to have value in promoting plant growth, except unmanipulated animal and vegetable manures, marl, lime, limestone, wood ashes and other products exempted by regulation”.

6.9.2 Further, the definition of ‘Fertilizer’ as per Farm Chemical Handbook ’98 Electronic Pesticide Dictionary reads as follows:

“Any natural or manufactured material added to the soil in order to supply one or more plant nutrients. The term is generally applied to manufactured material other than lime or gypsum”.

6.9.3 Additionally, the Condensed Chemical Dictionary (Tenth Edition, revised by Gessner G. Hawley) explains the term ‘Fertilizer’ as follows:

“A substance or Mixture that contains one or more of the primary plant nutrients and sometimes also secondary and/or trace nutrients. The primary nutrients are nitro en supplied as anhydrous ammonia, or solutions containing nitrogen derived from ammonia, ammonium nitrate or urea); phosphorus (as superphosphates derived from phosphate rock): and potassium (in the form of KC1 from sylvite ore or natural brines). Secondary nutrients are calcium, magnesium, and sulfur. Trace elements (iron, copper, boron, manganese, zinc and molybdenum) are also among the twelve elements considered essential for plant growth”.

6.10 Even from the product catalogue and packaging, it can be seen that the main purpose of the imported goods is a fertilizer for improving flowering and nutrition management after harvest. The product YaraVita Bud Builder is meant for foliar application for good initiation and strengthening of in crops. Further, the imported improves flowering and fruit set. YaraVita Bud Builder inter alia contains phosphorous, Magnesium. Zinc and Boron which arc all plant nutrients. The TDS for the goods clearly demarcates the micronutrients present in the goods.

6.11 In Circular No.79/79/94-CX dated 21-11-1994 micronutrients listed under Sr. No.1(F) of Schedule 1 Part (A) of the Fertilizer (Control) Order, 1985 and their mixtures (with or without N, P, K) as notified by the Central Government or a State Government have been recognized as fertilizers.

6.12 Accordingly, applying the common parlance theory, it is evident that that the imported goods are bought and sold in the market as fertilizer. Further, the end user as well as dealers / stockiest / retailers recognize and buy the imported goods as plant fertilizer only since it acts as an important source of Phosphorous to their plants, along with supply of micro-nutrients.

6.13 Applying the definitions and standards provided under the FCO, YaraVita Bud Builder not only meets the definitional parameters contained in the FC0, but is also specifically recognised as a fertilizer.

6.14 As detailed in paragraph 5.2 above, `YaraVita Bud Builder’ is primarily comprised of Phosphorous Pentoxide, Magnesium, Boron and Zinc.

6.15 The FC0 defines a Fertilisers as “essential substance, either in straight or mixed form and derived from either inorganic, organic or mixed sources, that is used or intended to be used to provide essential plant nutrients….” Furthermore, as per the explanation contained within the definition of fertilizer, “essential plant nutrients” include Primary Nutrients (Nitrogen, Phosphorous and .Potassium)„ Secondary Nutrients (Calcium, Magnesium and Sulphur) and Micronutrients (Zinc, Manganese, Copper, Iron, Boron and Molybdenum). Therefore, a mixture of Primary and Secondary as well as Micronutrients arc Fertilizers.

6.16 Further, the explanation to ‘Primary Nutrients’ under the FCO is identical to what arc considered as the Fertilizing elements under the Note 6 to Chapter 31. In other words, both legal regimes (FCC) and Customs Tariff) consider a mixture containing either of the elements “N,P,K” as a Fertilizer. Therefore, once the imported goods meet the definition of Fertilizer under the FCO, they ought to be considered as a Fertilizer under the Customs Tariff.

6.17 ‘YaraVita Bud Builder’ is the brand name for Magnesium hydroxide and Zinc Phosphate Micronutrient Fertilizer, which is squarely covered by the FCO under SI. No. 24 of Part A to Schedule I.

6.1.8 Schedule I under Part A specifies various types of fertilizers. Table below enumerates the various categories:

SI. No. in Part-A of Schedule I	Type of Fertilizer
1 (a)	1 (a) Straight Nitrogenous Fertilizers_
1 (b)	1 (b) — Straight Phosphorous Fertilizers
1 (c)	1 © –Straight Potassium Fertilizers
1 (d)	1(d) –Straight Potassium Fertilizers
1 (e)	1(c) N. P. Complex Fertilizers_
1 (f)	1 (f) N. P.K. Complex Fertilizers_
1 (g)	1(g) Micronutrients
1 (h)	1(h) Fortified Fertilizers
1 (i)	1(i) 100% Water Soluble Complex Fertilizers

From the above, it is evident that micronutrients arc covered as a type of Fertilizer under 1(g).

6.19 Under each of nine (9) broad categories of fertilizers, specific subcategory of Fertilisers ‘ with specific composition and quantity of each nutrient have been specified. In the present case, SI. No. 24 under category 1(g) — Micronutrients provides the specific quantitative requirements for Magnesium Hydroxide and Zinc Phosphate to be considered as a fertilizer. SI. No. 24 of category 1(g) is reproduced below:

24. Magnesium Hydroxide and Zinc Phosphate
(i)	Magnesium as Mg per cent. by weight minimum	24.0
(i)	Zinc as Zn per cent. by weight minimum	10.0
(ii)	pH (50 g/I,)	8.5+/-1
(iii)	Available Phosphorus as P20₅, per cent. by weight minimum	2.5.1

6.20 As detailed in paragraphs above, YaraVita Bud Builder is nothing but the trade name for Magnesium Hydroxide and Zinc Phosphate Micronutrient Fertilizers. Magnesium, Zinc and Phosphorous arc present in recognizable quantity in the entire composition of YaraVita Bud Builder. This is evident from the Certificate of Conformity (hereinafter referred to as “COC”) issued in compliance with the ECC Regulation (EC) No. 2019/1009. As per the COC, YaraVita Bud Builder is inter alia comprised of the nutrients/ micronutrients:

6.21 Further, Material Safety Data Sheet (`MSDS’) of YaraVita Bud Builder shows under Section 3 i.e.., ‘Composition / Information on ingredients’, that it is a mixture. Further, Sub-Heading 3.2 of MSDS shows that it is a mixture, of trizinc bis(orthophosphate) 120- <25 and disodium octaborate tetrahydrate 12.5- <151. Copies of Product Catalogue, and MSDS of YaraVita BudI3uilder have already been enclosed as Annexure-5 & 6, respectively.

6.22 Further, YaraVita Bud13uilder conforms to FCC) standard specified for ‘Magnesium Hydroxide and Zinc Phosphate Micronutrient Fertilizer’ is undisputed. To this extent the Government of Maharashtra, Director of Agriculture (I & QC) Maharashtra State has issued the Applicant with FCO License No. LCFWD2022120892 dated 29.07.24 which covers `Magnesium Hydroxide and Zinc Phosphate’ as a Micronutrient Fertilizer supplied by Yara Pockl (Yara UK Limited, Pocklington)

6.23 Therefore, condition (a) to Note 6 to Chapter 31 as stated in paragraph above is fulfilled as the imported goods are a fertilizer, recognised as a fertilizer under the FC0 and are used as a fertilizer.

YaraVita Bud Builder contains Phosphorous (P) (one Qf fertilizing elements) as an essential constituent.

6.24 The Applicant submits that one of the essential constituents of YaraVita I3udBuilder is Phosphorus and therefore, the goods meet condition (b) contained in Note 6 to Chapter 31. As detailed in the forgoing paragraphs, imported goods are a mixture of Phosphorous, Magnesium, Boron and Zinc. There substances are present as essential constituents in the recognizable quantity in the entire composition. From the four (4) essential constituents, Phosphorus, i.e., one of the fertilizing elements comprises 6.9% of the total fertilizer.

6.25 The Applicant submits that neither the Chapter notes nor the HSN Explanatory Notes to Chapter 31 quantify or specify the minimum percentage of presence of N,P,K in the product to enable its classification under Heading 31.05. The de minims for an essential constituent is not a mathematical percentage but is to be determined on the basis of whether the fertilizing element is present in recognizable percentage and is an essential constituent.

Case laws relied upon by the applicant:

7. Emphasis is placed on the decision of CCE & ST Vs. Aries Agrovet Industries — 2017

(7) TMI 289 wherein, the Hon’ble CESTAT, Hyderabad has held that Micronutrient in which nitrogen (one of the fertilizing elements) is present even in small quantities, is classifiable under IIeading 31.05. The Hon’ble CESTAT relying on Circular No.26/1990-CX dated 24.5.1990 and Circular No.79/79/94-CX dated 21-11-2004 held that the product which contains recognizable percentage of nitrogen comes under the ambit of micronutrient fertilizers and are classifiable as ‘other fertilizers’ in Heading 31.05. Relevant portion of the decision of the I Hon’ble CESTAT, I Hyderabad is reproduced herein:

…8.5 The I ISN notes for these tariff headings will be very useful lbr determining the correct _.classification. Entry No.38.08 is in fact is grouped in chapter for “Miscellaneous Chemical Products”. Under the heading 38.08, which includes Plant Growth Regulators, it is indicated that the heading covers anti-sprouting products and Plant Growth Regulators intended to inhibit or promote physiological process in plants. It is interesting to note that Plant Growth Regulators are grouped along with other in ices. herbicides and disinfectants, all of which are intended to destroy pathogenic germs, insects, mosses and moulds, weeds, pests and achieve their results as given in the notes by nerve poisoning, stomach poisoning by asphyxiation or by odor etc” From the data on plant growth regulators submitted by the appellant, we find that at least in some parts of the world, they arc regulated as pesticides. Discernibly, micronutrients which arc admittedly for promoting only growth and health of plant cannot logically find a place in this heading.

8.6 It is interesting to note that CBEC found it necessary to issue yet one more circular No.1022/10/2016-CX, dated 06.04.2016, on the very issue of classification of micronutrients, plant growth regulators etc. In the first para itself, the circular acknowledges that the issue of classification of these items remain a disputed area in Central Excise. On the basis of opinion obtained from Indian Agricultural Research Institute (IARI), Central Excise Tariff explanatory notes, nature, usage etc., the CI3EC has clarified, inter-alia, that micronutrients are essential nutrients and required in small quantities for the normal growth and development of plants containing elements like iron, Manganese, Zinc, Copper, Boron, Molybdenum. Nickel etc. Board has also acknowledged that these micronutrients are sold in the market as micronutrient fertiliser. It has, however, clarified that for classification under chapter 31, at least one of the elements viz; Nitrogen, phosphorous or potassium should be an essential constituent of the fertiliser. Board has also clearly differentiated plant growth regulators as “organic compound other than nutrients which affect the physiological process of growth and development in plants.” Board has further clarified, in para 6 therein, that its past circulars on the subject. viz; dated 21.11.1994 and 19.05.1998 are rescinded and that classification of micronutrients etc. shall be governed by the present circulars.

8.7 As per the aforesaid CBEC circular dated 06.04.2016, plant growth regulators are defined as organic compounds other than nutrients that affect the physiological processes in plants, by hormonal action in promoting inhibitin2 or modifying growth and development. On the other hand, micronutrients, as explained in the very same circular, are essential nutrients, like iron, Manganese, Zinc, Copper, Boron etc., that arc required in small quantities for the normal growth and development of plants. Micronutrients thus cannot modify inhibit retard the growth of plants like plant growth regulators, they only promote normal growth.

8.8 Applying the above findings, it clearly emerges that the impugned products definitely do contain more than one of the essential nutrients listed in the circular, they have also contained recognizable percentage of nitrogen. This being so, the disputed items are certainly micronutrients. In view of presence of nitrogen, and also considering that they arc mixtures and not separate chemically defined compounds, the said goods would therefore come under the ambit of micronutrient Fertilisers and will then required to be classified as in “other Fertilisers” in CETI-I 31.05.

9. Viewed in this light, we are unable to find any infirmity with the conclusions of the adjudicating authority in the impugned orders, holding that the products Chelamin, Agromin, Chelafer and Chelacop arc to he classified under CETI-I 3105.90. This being so, the Revenue appeals arc bereft of merit and cannot succeed.”

7.1 This decision is further followed in following decisions of the Hon’ble CESTAT, I Hyderabad:

a. Hindustan Agro Insecticides Vs. CCE & ST — 2017-T101,-3145-CESTAT.

b. CCEx & ST Vs. Vikas Agro Products – 2017 (12) ‘FMI 458 – CESTA’I’

7.2 Further, in the case of Vardhman Fertilizers & Seeds Vs. CC — 2017 (345) ELI 560 (Tri-Mumbai)., by the Hon’ble CESTAT, the product in dispute was WSS NPK 02:50:34 which contained “mono potassium phosphate” with purity of 99.6%. The dispute was to ascertain whether the imported goods arc “fertilizers” within the meaning of Chapter 31 of the First Schedule of the Customs Tariff Act, 1975 or arc covered by Chapter 28, in particular Tariff Item 28 35 2400 which covers “phosphate of potassium”. The Hon’ble CESTAT held that Note 6 of chapter in relation to the residuary category restricts classification under “other fertilizers” in 31.05 to goods to be used as “fertilizers” and containing one of the fertilizing elements. Relevant portion of the aforesaid decision reads as under:

“6. Having heard both the sides, we find that the dispute lies within the narrow compass of ascertaining whether the imported goods arc “fertilizers” within the meaning of Chapter 31 of the First Schedule of the Customs Tariff Act, 1975. The two rival entries arc “phosphate of potassium” and “fertilizers” containing two fertilizing elements phosphorous and potassium. Note 1 of Chapter 28 indicates that the heading of that chapter would only apply to items listed in the said note among which arc separate chemically defined compound. With reference to I ISN Explanatory Notes under Ileading 31.05 where it is stated:

“the heading does not include other chemically defined compounds not specified even if they could be used as fertilizers”..

7. We note that the adjudicating authority has relied primarily upon the tariff entries, the circular of the Central Board of Excise and Customs and a decision of this Tribunal in 2001 to exclude from the list of fertilizers such goods by describing them as separate chemically defined compounds. The adjudicating Commissioner has not discounted the contentions of the importers that the goods are indeed fertilizers but has decided against the importers on the ground that these arc individually chemically compounds which find a specific mention^– in the Tariff. There can be no doubt that the potassium phosphate finds specific mention in Chapter 28 and the IISN describes it in the following manner under Chapter 28:

“The best known is potassium dihydrogen orthophosphate (monopotassium phosphate) obtained by treating phosphate chalk with orthophosphoric acid and potassium sulphate. Colorless crystals, soluble in water. Used as a yeast nutrient and as a fertilizer.” •

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. “Ile goods listed in Note 2(A), 3(A), 4(A) or 5 to which Note 1(h) refer are intended to restrict the applicability under one or other of IIeadings 31.02, 31.03, 31.04 as applicable. Note 6 of chapter in relation to the residuary category restricts classification under “other fertilizers” in 31.05 to goods to be used as “fertilizers” and containing one of the fertilizing elements. In view of the above arrangement of exclusions and inclusions in Chapter 31,^– it would appear that all of the headings preceding 31.05 arc to be taken as “Fertilizer” to the extent that these arc also used as fertilizer and not excluded by Note 1(b). There is no averment in the note or impugned order that the imported goods are not fertilizer. For the above reasons, we find that the classification of the imported goods should fall under Chapter 31 and not Chapter 28. The inclusions of the imported items in the Fertilizer (Control) Order, 1985, as amended in 1995, cannot but reinforce the opinion that these arc indeed fertilizers as decided by the competent department of the Government of India.

!Emphasis Supplied!

7.3 A similar view has also been taken in the following decisions:

a. CCEx. Vs. Rallis India — 2005 (186) ELT 382 (f ri.—Chennai);

b. Assam Company Ltd Vs. CC — 2001 (133) ELT 110 (Tri.—Kolkata) [affirmed by the Hon’ble Supreme Court in 2002 (146) ELT A218]; and

c. Transpek Industry Ltd Vs. CCEx. — 2008 (230) ELT 351 (Tri.—Ahmd.)

d. CC (Exports) Vs. SLV Fertichem — 2018-VIL-71-CESTAT-CHE-CU

7.4 In CCE, Mumbai Vs, Aries Agrovet Industries — 2018 (6) TMI 1070, the inicronutrients owing to the presence of Nitrogen were classified under the I leading 31.05. The Hon’ble CESTAT has held that the product which contains recognizable percentage of nitrogen comes under the ambit of micronutrient fertilizers and are classifiable as ‘other fertilizers’ in ‘leading 31.05. Relevant portion of the above decisions reads as under:

“22. Therefore:

i. Micronutrients’ and ‘macronutrients’ arc required for agriculture as fertilizers. In classifying them thus. it is the intended use that must prevail as inferred from the scheme of Schedule. ‘Micronutrients’ are not ‘plant growth regulators. With the notices proposing classification of the products as ‘plant growth regulators’, the proceeding against respondent fails on this count alone.

ii. To the extent that these are enumerated with reference to note 2 of chapter 31, the specific compounds of nitrogen, phosphorous and potassium, even if not designated as `fertilizer’ would be classifiable in chapter 31 along any others described as ‘fertilizer’ except those under heading 3105. with the exception of the compound specified in note 5, and those containing any one of the three primary fertilizing elements. The notes in the chapter are not intended to restrict classification in chapter 31 when. intended for use as ‘fertilizer’ unless specifically and deliberately excluded by the notes of the chapter.

iii. The circulars and precedent judgements, save the decision of the Tribunal in the dispute of the respondent themselves, have not examined the classification and scope of heading 3105 of First Schedule of Central Excise Tariff Act, 1985.

iv. 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.”

7.5 The aforesaid judgement of the IIon’ble CESTAT, Mumbai has been affirmed by the Hon’ble Supreme Court vide Final Order dated 14.12.2018 in Civil Appeal No. 41393 of 2018.

7.6 In the circular, Circular No. 79/79/94-CX dated 21.11.1994, micronutrients were held to be classifiable under Heading 31.05 as “Other Fertilizers” invoking Rule 4 of Interpretative Rules of the Central Excise Tariff.

In view of the above, the micronutrient fertilizers are to be classified under I leading 31.05 as ‘other fertilizers’.

8. Conclusively, YaraVita Bud Builder meets the requirements of (a) used solely as a fertilizer and; (b) one of its essential constituents is the fertilizing element ‘Phosphorus’ which is present in a recognizable quantity of 6.9%.

Therefore, YaraVita Bud Builder containing a recognizable percentage of Phosphorous i.e., 6.9%, which is a fertilizing element and an essential constituent is classifiable under Tariff’ Item 3105 90 90.

Port of Import and reply from jurisdictional Commissionerate:

9. The applicant in their CAAR-1 indicated that they intend to import the subject goods from 0/o Pr. Commissioner of Customs, .INCH, Uran. The application was forwarded to the jurisdiction for their comments on 23.05.2025, 17.06.2025, 08.08.2025 and 15.09.2025, however no response was received from the jurisdictional authority.

Details of Personal Hearing:

10. A personal hearing was held on 09.07.2025 in this matter. Ms. Madhura Khandekar and Shri Sidharth Sen both Authorized representatives appeared for PH on behalf of the applicant,. They reiterated the submission filed with the application and submitted that subject goods i.e “YaraVita Bud Builder brand name for ‘Magnesium Hydroxide and Zinc Phosphate Micronutrient Fertilizer’, is a micronutrient Fertilizer and meets the requirements of fertilizing element and merit classification under Tariff Item 3105 90 90, inasmuch as the components constituent’s macro and micro nutrients including Phosphorous, Magnesium, Zinc and Boron. They relied upon Note 6 to the chapter 31 of the Customs Tariff Act, FCO, 1985, as amended. Yara Fertilizers India Vs Cc-2022(6) TMI-CESTAT and other case laws.

Nobody appeared for PII from the department side.

DISCUSSION AND FINDINGS:

11. I have considered all the materials placed before me in respect of the subject goods. I have gone through the submissions made by the applicant in CAAR application as well as the submission made by the applicant during the personal hearing. No reply has been received from the jurisdictional Authority. I proceed to pronounce. a ruling on the basis of information available on record as well as existing legal framework.

12. The Applicant also submitted in its application that the question of classification of subject goods i.e. “‘YaraVita Bud Builder’-ie-‘Magnesium Hydroxide Zine Phosphate Micronutrient Fertilizer” has not been already raised and pending or decided by any officer of Customs, the Appellate Tribunal or any Court as far as the applicant is concerned. Accordingly, I find that the issue raised in the question in the Form CAAR-1 is squarely covered under Section 2811(2) of the. Customs Act,.1962, being a matter related to classification of goods under the provisions of this Act.

13. I observe that that applicant submitted that the subject goods YaraVita Bud Builder is a fertilizer with macro and micrcinutrients comprising of Phosphorous, Magnesium, Zinc and Boron. The physical appearance of the fertilizer is a ‘beige powder’ and has partial solubility in water. YaraVita Bud Builder is specifically meant for foliar application and improves flowering and aids in nutritional management. Ongoing through the submission of the applicant, I observe following things in respect of the subject goods:

13.1 YaraVita Bud Builder is a mixture of Phosphorus Pentoxide, Magnesium, Boron and Zinc. The specific composition as per the Technical Data Sheet (hereinafter referred to ^,as “‘MS”) provided by the supplier is produced herein below:

Sl. No.	Chemical Composition	Percentage
5.	Phos horous Pentoxide	6.9%
6.	Magnesium ‘Magnesium Oxide1	24% 40%
7.	Boron	3%
8.	Zinc	10%

13.2 Further, the Certificate of Conformity (hereinafter referred to as “COC”) issued in compliance with the ECC Regulation (EC) No. 2019/1009 also states that YaraVita Bud 13uilder is interlaid comprised of the following nutrients/ micronutrients:

SI. No.	Nature of element	Name	Specification Vo w/w.
4.	. Primary Nutrients	Phos horous	2.5
4.	Secondary Nutrients	Magnesium	24.0
5.	Micronutrients	Zinc	10.0

Further, I find as per material Safety Data Sheet (hereinafter referred to as “MSDS”) of YaraVita Bud Builder under Section 3: ‘Composition / Information on ingredients’, states that it is a ‘Mixture’ of (a) trizinc bis(orthophosphate) [20- <25^–1 and (b) disodium octaborate tetrahydrate 12.5- <151. Furthermore, Magnesium and Zinc arc present in the quantity predominantly 10% or more than that (Magnesium 24%, Magnesium Oxide 40% and Zinc 10%). Whereas, Boron and Phosphorous arc present as per COC 3% and 2.5% and as per TDS 3% and 6.9% respectively, which are comparatively in lesser quantity in the subject goods.

13.3 From above discussion and submission of the applicant (Certificate of Conformity “COC” and material Safety Data Sheet ‘ MSDS’) I find that the subject goods i.e. “`YaraVita Bud Builder’- i.e. ‘Magnesium Hydroxide and Zinc Phosphate Micronutrient Fertilizer” is mainly a mixture of following chemical compounds:

SI. No.	Chemical Compounds	Percentage
1.	Phosphorous Pentoxide P2O5	2 . 5 %-6.9%
2.	[Magnesium Oxide] Mgo	40%
3.	trizinc s(orthophosphate) Zn3(PO4)2)	20-25%
4.	disodium octaborate tetrahydrate Na2B8013.41-120	2.5-15%

13.4 Schedule I Si. No. 24, Sub-Heading 1(g) of Part AI of the FCO covers ‘Magnesium Hydroxide and Zinc Phosphate Micronutrient’ under the category of `Micronutrients’ which are used as Fertilizer.

13.5 I observe that the subject goods YaraVita Bud Builder conforms with the parameters laid down for Micronutrients ‘Magnesium Hydroxide and Zinc Phosphate’ in Si. No. 24, Sub-Heading 1(g) of Part A of the Schedule I of the FCO. Table below provides the parameters for a Fertilisers to be considered as ‘Magnesium Hydroxide and Zinc Phosphate Micronutrient Fertilizer’.

SI. No.	Specific Parameter	Percentage/require
5.	Magnesium as Mg per cent. by weight	24.0
6.	Zinc as Zn per cent. by weight	10.0
7.	PH (50 g/L)	8.54-/-1
8.	Available Phosphorus as P205, per cent. by weight minimum	2.5

14. From the above discussion and observations, it can be seen that the subject good i.c ” `YaraVita. Bud Builder’- ‘Magnesium Hydroxide and Zinc Phosphate is predominantly constitute of Magnesium(24% by weight),which is the most vital ingredient being a secondary nutrient, zinc(10% by weight) is the second most important constituent which is used in the product as Micronutrient- a nutrient kind used in small quantity for plant growth and development. The .Phosphorous in the product is only 2.5% by weight (as per technical data sheet 6.9%). It is to be underlined that the available phosphorus is in the smallest amount that amounts and is only 1/4 the of the zinc component (by dry weight) as per COC. Zinc itself is required by the ^–plants in smaller quantity being a “Micronutrient”. Thus, the presence of Phosphorous is comparatively insignificant in the product considering its available proportion therein. Further, the applicant themselves claimed the product as “Micronutrient Fertilizer” listed under Si. No. 24, Sub-Heading 1(g) of Part A of the Schedule I of the FCO, 1985.

15. Now, before deciding the issue of classification of the subject goods, let me deliberate On the legal framework prescribed in Customs Tariff Act. 1975. Chapter/ Section notes along with IISN explanatory notes, circular No. 1022/10/2016-CX dated 6-4-2016. As per Rule 1,ol GRI, the titles of Sections, Chapters and sub-Chapters are provided for ease of reference only; for legal purposes, classification shall be determined according to the terms of the headings and any relative Section or Chapter Notes.

16. Fertilizer is not defined in the Customs tariff or Customs Act. Fertilizer (Inorganic, organic and Mixed) (Control) Order, 1985) (hereinafter referred to as FCO, 1985) as amended, defines the Fertilizer as per follows:

h. “fertiliser” means any essential substance, either in straight or mixed form and derived from either inorganic, organic or mixed sources, that is used or intended to be used to provide essential plant nutrients or beneficial elements or both for the. soil or for the crops or makes essential plant nutrients available to the plants either directly or by biological process or by both in the soil or plant as notified from time to time by Central Government and specified in the schedules appended to this order or as may be^. notified by the State Governments.

Explanation: – For the purpose of Fertilizer-

(i) . “the essential plant nutrients” include Primary Nutrients (Nitrogen, Phosphorus and Potassium), Secondary Nutrients (Calcium, Magnesium and Sulpher) and Micronutrients (Zinc, Manganese, Copper, Iron, Boron and Molybdenum);

(ii) “Beneficial element” means any element as notified by the Central Government from time to lime.”:

However. no explicit definition of the micronutrients is given in the definition section of FCO, 1985.

17. Further, micronutrients are defined in the CBIC circular No. 1022/10/2016-CX dated 6-4-2016. The said circular clarifies the nature of micronutrients, multi-micronutrients, Plant Growth Regulators and Fertilizers. The relevant, part of the circular is produced below:

In light of the opinion received from IARI, Central Excise Tariff and explanatory mites of I ISN, nature, usage and classification of micronutrients, Multi-micronutrients, plant growth regulators and fertilizers is explained in the following paragraphs.

2.1 Micronutrients are essential nutrients that are required in small quantities for the normal growth and development of plants. As on today, iron (Fe), manganese (Mn), zinc (/_n), copper (Cu), boron (B), molybdenum (Mo), nickel (Ni) and chlorine (Cl) are included in this category. These elements are also called minor or trace elements, but this does not mean that they are less important than macronutrients. Reply received from MRI on the subject, enclosed with the circular, may please be referred for further details. Inputs received from the trade indicates that these micronutrients are sold in the market as ‘micronutrient fertilizer’ supplying one or more of the eight essential nutrients listed above, namely iron to chlorine. However, in the trade parlance sale of micronutrients as ‘micronutrient fertilizers’ would not lead to classification thereof tinder chapter 31 as fertilizers for the purposes of Central Excise Tariff. For classification under chapter 31, at least one of the elements, namely- nitrogen, phosphorus or potassium should be an essential constituent of the fertilizer as per chapter note 6 of chapter 3 1 .

2.2 There is no specific heading in the tariff for classification of micronutrients. 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. For example, some of the sulphate of micronutrients are specifically covered under CETH 2833.

2.3. Vide Notification no.12/2016 – C. E dated 1.3.2016, Notification no. 12/2012 – CE dated 17.3.2012 has been amended and a new serial no 109A has been inserted to exempt duty of excise in excess of 6%, payable on micronutrients classifiable under chapter 28, 29 or 38 and covered under serial number 1(f) of Schedule 1, Part (A) of the Fertilizer Control Order, 1985 and manufactured by the manufacturers registered under the Fertilizer Control Order, 1985.

4.1 Fertilizers are classified under chapter 31 of the Central Excise Tarilfand Jiff this purpose they may interiliac be minerals or chemical fertilizers – nitrogenous (CE1713102), phosphatic (CETII 3103), potassic (CETH 3104) or fertilizers consisting of two or three of the fertilizing elements namely nitrogen, phosphorous and potassium: other fertilizers(CETII 3105). For the purpose of classification of any product as “other chapter note 6 of Chapter 31 is relevant which provides that the term “other _fertilizers^.‘ applies only 16 products of a kind used as fertilizers and contain, as an essential constituent, at least one of the elements nitrogen, phosphorus or potassium. It is quite clear that_./Or any product to merit classification under CETII 3105 as other fertilizers, the product must have nitrogen or phosphorus or potassium or their combination as an essential constituent providing the essential character to the product. The chemical elements – nitrogen, phosphorus and potassium are also referred as macronutrients or primary fertilizer elements and are required in higher quantity by the plants.

4.2 Any product where the essential elements are not nitrogen or phosphorus or potassium or their mixture would not merit classification under C OH 3105. Further. the specific exclusion of separate chemically defined compounds as laid down in chapter note 1(b) and in the IISN Explanatory Notes to the heading 3105.90, reinforce the above conclusion. It may also be noted that notifications issued under Fertilizer Control Order are not relevant for deciding classification under the Central Excise Tariff

5. Mixtures of micronwrients/multimicronutrients with _.Fertilisers are also manufactured and sold. They shall be classified according to their essential characters and general rules for interpretation of the schedule to the tariff Where the essential constituent giving character to the mixture is one or more of the three elements namely Nitrogen, Phosphorous or Potassium, the mixture shall be classified under any of the heading of Chapter 31, depending upon its composition. On the other hand, where the essential character of the product is that of mixture of micronutrients multi-micronutrients having predominately trace elements, it shall be classified under CETI! 3824 as chemical products not elsewhere specified Or included.

18. The above said circular is issued after the opinion received from IARI (Indian Agricultural Research’ Institute) with intent to bring clarity and understanding of issues in general and for ascertaining proper classification of a kind product under Customs Tariff Act in particular. On careful reading of the said circular (which is issued after taking opinion of IARI)..It is apparent that:,

i) In the trade parlance sale of micronutrients as `micronutrient fertilizers’ would not lead to-classification thereof sunder chapter 31 as fertilizers.

ii) where the essential character of the product is that of mixture of micronutrients micronutrients having predominately trace elements, it shall be classified under CETI 13824 as chemical products not’ elsewhere specified or included.

iii) Nitrogen, Phosphorus and Potassium arc macronutrients/primary fertilizer element and are required in the higher quantity by the plants as against the micronutrients/ secondary nutriments. Thus, it is predominance of Nitrogen or potassium or phosphorous that determines the essential character of the product.

iv) Notifications issued under. Fertilizer Control Order arc not relevant for deciding classification.

The General HSN Explanatory Note to the Chapter 31 which we will see in next paragraphs. in clear terms provide-that Micronutrients preparation containing small amount of Nitrogen, Potassium and Phosphorous arc excluded from the fertilizers and arc classifiable under CTII 3824.

18.1 In view of the above, I observe that the grounds submitted by the applicant for proposed classification of the subject goods under CTI 31059090 is not legally tenable, on the basis of following submissions:

a) Applicant has a valid license of for import and sale of fertilizers and SI. No. 3 of the License specifically permits the Applicant to import and sell ‘Magnesium Hydroxide and Zinc Phosphate Micronutrient Fertilizer’

h) The subject good falls under schedule I SI. No. 24, Sub-Heading 1(g) of Part A of the FCO, 1985 as a micronutrient will leads to its classification

19. I observe as per Applicant’s interpretation of law the subject goods arc classifiable under^. CTI 13105 and CTI 31059090- as other fertilizers as the subject goods contain contains Phosphor Otis(P) (one of fertilizing elements) as an essential constituent and as defined under Note 6 to Chapter 31.

Relevant portion of under Note 6 to Chapter 31 is reproduced herein:

“For the purpose of heading 3105, the term ‘other fertilizers’ applies only to products of a kind used as Fertilisers and containing, as an essential constituent, at least one of the fertilizing elements nitrogen, phosphorus or potassium.”

20. Ongoing the above produced note 6 to the chapter 31 read with the circular CBIC circular No. 1022/10/2016-CX dated 6-4-2016. It is quite clear that for any product to merit classification under CETII 3105 as other fertilizers, the product should be of a kind used as Fertilisers and must have nitrogen or phosphorus or potassium or their combination as an essential constituent providing the essential character to the product.

I observe that the subject goods are used as fertilizer. Therefore, to make it clear whether the subject goods will merit classification under CHI 3105 or otherwise. It is needed to he analysed whether phosphorus is the essential constituent which provides the essential character to the product or otherwise.

21. From the discussion and findings in the forgoing paras above, I find that the subject good is mainly composed of the mixture of the chemical compounds. It is covered under the Sl. No. 24, Sub-I leading 1(g)- Micronutrients category of Part A of the Schedule I of the FCO and confirms the parameter mentioned therein. It is mainly a mixture or micronutrient preparation which is used as a fertilizer. The subject do contain small amount of Phosphorus as Phosphorus pentoxide which is just 2.5% by weight as per COC (Certificate of Conformity) issued by EU and 6.9% as per TDS (Technical Data Sheet). However, based on the composition the subject goods I find that phosphorus is not the essential constituent which gives essential character to the subject goods i.e YaraVita Bud Builder-`Magnesium Hydroxide and Zinc Phosphate Micronutrient’. The subject goods are actually a micronutrient fertilizer which arc covered under Sl. No. 24, Sub-I leading 1 (g) — Micronutrients category of Schedule I Part A of FCO; 1985 and the same also confirms to the parameters mentioned therein. It is the mixture/preparation of micronutrients containing secondary nutrient Magnesium (24%) and Micronutrients Zinc (10%) and Boron (3%) and a meagre quantity of primary nutrient Phosphorous (2.5%). Micronutrients/mixture of Micronutrients viz Mg, Zn, B are the essential constituents providing essential character to the subject goods making it fall under the category of Micronutrient fertilizer. Further, Phosphorous is not the essential element deciding the actual character of the subject goods as Fertilizer.

Accordingly, the subject goods YaraVita Bud Builder i.e ‘Magnesium Hydroxide and Zinc Phosphate’, is a micronutrient preparation/mixture. It is used as Micronutrient fertilizer, in trade parlance. But the. circular 1022/10/2016-(TX dated 6-4-2016 very categorically provides that the trade parlance sale of the micronutrients as micronutrient fertilizer would not lead to classification thereof under chapter 31 as Fertilizer. The Applicant has relied upon above case laws that the Hon’ble CESTAT has considered the subject goods as Fertilizer even when miniscule percentage of Nitrogen were present in the corresponding products. I observe that the Applicant has ‘overlooked the content of the abOve circular in which it is in clear terms mandated that IVO are not relevant for deciding the classification under the Central Excise tariff and that when the essential character of the product is that of the mixture of micronutrients having predominantly • trace elements has to be classified under CETI 13824 as chemical products not elsewhere specified or included due to inadequate presence of Phosphorous, in the said product. In addition, General explanatory notes to the Chapter 31 has categorically clarified that micronutrient preparations which are applied to seed, to foliage.oi’ to soil to assist in seed germination and plant growth and contain small amounts of the fertilizing elements nitrogen, phosphorus and potassium, but not as essential constituents arc classifiable under CFTIl 3824.

The relevant portion of General explanatory note is produced below for reference:

General” –

“This Chapter also excludes micronutrient preparations which Uri applied to ‘seed, to foliage or to soil to assist in seed germination and Plant grollth. They may contain small amounts of the fertilizing elements’ nitrogen, phosphorus and potassium but not as Ssential constituents (e.g. heading 38.21)”.

In view of the above, the subject goods are out of the purview of the chapter 31 more particularly • under CTII 3105 as the essential constituent of the subject goods arc micronutrients/mixture of micronutrients which provides the essential character to the goods and not the Phosphorus which is undisputedly in insignificant^– proportion considering the overall composition of the product.

22. In view of the above clear ^.provisions’ of the’ law it ‘is apparent that:

Section 2(h) of ITO defines fertilizers_. as any essential substance, either in straight or mixed form and derived from either inorganic, organic or mixed :sources, that is used or intended to be used, to provide essential plant nutrition or beneficial clement or both for the soil or for the crop or makes essential plant nutrients available to the plants either directly or by biological process or by both in the soil or plant as notified from time to time by Central Government and specified in the schedules appended to this order or as may be notified by the State Governments.

On going through the explanation given in the FC0 1985 to para (h)- For the purpose of fertilizer: –

(i) “the essential plant nutrients include primary nutrients (Nitrogen, Phosphorous and Potassiurn), Secondary Nutrients (Calcium, Magnesium and Sulphur) and Micro nutrients (Zinc, Manganese, Copper, Iron, Boron and Molybdenum)

(ii) Notified beneficial elements.

The ^–essential plant nutrients” has three categories: –

(a) Primary Nutrients- Nitrogen, Phosphorous and Potassium

(b) Secondary Nutrients^.– Calcium, Magnesium and Stilphur

22.1 The CBIC, to bring clarity to the issue of classification of micronutrients, multi-micronutrients,- PGRs and fertilizers, after receiving opinion from Indian Agricultural Research Institute (IARI) issued Circular No. 1022/l0/2016-CX dated 06.04.2016. This Circular defines that micronutrients arc essential nutrients. which are “required in small quantities” for the normal growth and development of plants.

When we consider the constituent ingredients in the subject product “YaraVita Bud Builder” as declared by the applicant and as reflected in para 6.19 above, it is observed that the percentage by minimum weight of the magnesium is 24%, which is highest in the product. Magnesium is one of the secondary nutrients and is not a primary one. Similarly, Zinc (regarded as one Of the micronutrients required by plants in small quantity) constitutes second^. highest percentage share i.e. 10 % in the product. It is further observed that phosphorous,- which is a primary nutrient (other are Nitrogen and Potassium) constitutes a meagre share of 2.5% in the product. It is to be underlined that the primary nutrients arc needed in large amount in plants for the healthy growth, root and leaf development, photosynthesis, flowering and fruiting, whereas Micronutrients are required in small quantities. It can be easily understood that the presence of Phosphorous in the product is very less (2.5%) even in comparison of Secondary nutrients which is Magnesium (24%) in the instant case. Contrarily, share of Phosphorus (2.5%) it is only one-fourth of Zinc, which is a micronutrient element. Hence, it can be understood that the presence of phosphorous in the product is not capable enough to classify the product under CT143105.

22.2 I observe here that the product is not a straight Phosphorus fertilizer as per Sr No. 1(b) in Part A of Schedule I of FCO, 1985, as amended nor a combination of N.P.K to satisfy the condition for classification of the product as fertilizer under CTI-1 3105. The applicant’s main contention is that the product “YaraVita Bud Builder” fall under the purview of 1(g) of the said Schedule as `Micronutrient Fertilizer’. They would further contend that the certain mathematical percentage of an element is not essential in the product, but recognizable percentage of the element is sufficient to determine the product as ‘Micronutrient Fertilizer. Here, I find it correct that there is no specific percentage is provided in the Customs Tariff Act and I ISN Explanatory Notes, but it could be seen that the language employed in the Heading 3105, Note 6 of the Chapter 31 of CTA and clarification made in the C131C Circular No. 1022/10/2016-CX dated 06.04.2016 is very clear and determinative. In the instant case to classify a product under the fertilizer either the product should be Phosphorous dominance (superphosphate) i.c. Di-phosphorous Pentoxide (P205) containing weight 35% or more; (C1^.‘31031100) or alike other (CTI-31031900) or should be phosphatic fertilizer other than superphosphates (C^–11-31039000). As the composition of the product clearly indicate here that, it contains only 2.5% dry weight phosphorus and the magnesium and zinc are dominant. Therefore, the product cannot be classified in CTI1-3103 as a phosphatic fertilizer.

The CTH-3105 provides as per follows:-

Mineral or Chemical Fertilizers containing two or three of the fertilizing elements Nitrogen, Phosphorous and Potassium; Other fertilizers. As the product has the trace of only one fertilizing element, it is not simply the mineral or chemical fertilizer.

Now one description is left under the cri I i.e. “other fertilizers”. The Chapter note 6 to the Chapter 31 makes provisions of “other fertilizers” it reads as per follow:

“for the purpose of heading 3105, the term “other fertilizers” applies only to the product of a kind used as fertilizers and containing as an ‘essential constituents; at least one of the fertilizing elements Nitrogen, Phosphorous or Potassium.

22.3 In view of the above. I observe that Note 6 of Chapter 31 applies only to:-

A) product of a kind used as fertilizer, and

B) (i) contains at least one of the fertilizing elements- Nitrogen, Phosphorous or Potassium 13

(ii) The’ fertilizing elements Nitrogen, Phosphorous or Potassium must he ‘present ^.as “essential constituents” in the product.

I find that the product Yara Vita Bud Builder is the product of a kind used as a fertilizer. hence (A) above is satisfied. The product contains at least one fertilizing elements Phosphorous, but its presence is negligible/non substantial in the product considering the role of the phosphorous in the plant physiology (part of NPK group; Primary nutrient fertilizer). hence, condition 13(i) is not completely satisfied. Thirdly, the presence of Phosphorous in the product is only 2.5%, which is almost only one fourth of the Zinc (a micronutrient) does not make the element as essential constituents. Here the elements like magnesium (24%) and Zinc (10%) commonly find their place as an essential constituent, Accordingly., B(ii) above does not satisfy. The Circular No. 1022/10/2016-CX dated 06.04.2016 elaborates this provision in more clear .and precise ways. It is important to note that the said Circular issued after taking opinion for Indian Agricultural Research Institute (IRAI) and in terms of Central Excise ‘Tariff and explanatory notes of I ISN. The said Circular after taking opinion and examining the corresponding Central Excise Tariff and I ISN explanatory notes provides as follows:

2.1 Micronutrients are essential nutrients that are required in small quantities /or the normal growth and development of plains. As on today, iron (Fe), manganese (Mn), zinc (7,n), copper (Cu), boron (B), molybdenum (Mo), nickel (Ni) and chlorine. (C1) are included in this category. These elements are also called minor or truce elements, but this does not mean that they are less important than macronutrients. Reply received from IARI on the subject, enclosed with the circular, may please be referred for further details. Inputs received from the trade indicates that these micronutrients are sold in the market as `micronut rienifertilizer’ supplying one or more of the eight, essential nutrients listed above,.nOmelv iron )reviver, the trade parlance sale of micronutrients inicronutrients fertilizers’ 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, namely- nitrogen, phosphorus or potassium .should be an essential constituent of the fertilizer as per chapter note ,6 of chapter 3l.

2.3. Vide Notification no. 12/2016 – C.E dated 1.3.2016, Notification no. 12/2012 CE dated 17.3.2012 has been amended and a new serial no 109A has been inserted to exempt duty of excise in excess of 6%, pdyable on micronutrients classifiable under chapter 28, 29 or 38 and covered under serial number 1(f) of Schedule 1. Part (A) of the Fertilizer Control Order, 1985 and manufactured by the manufacturers registered under the Fertilizer Control Order, 1985.-

Further the Circular also makes provisions about fertilizers:”

4.1 Fertilizers are classified under chapter 31 of the Central Excise Tariff and for

this purpose they may interilia be minerals or chemical_. fertilizers – nitrogenous (CET 1I3102), phosphatic (CE7113103), potassic (CE1113104) or fertilizers consisting of two or three of the fertilizing elements namely nitrogen, phosphorous and potassium; other fertilizers(CE711 3105). For the purpose of classification of air; product as “other_. fertilizers”, chapter note 6 of; Chapter 31 is relevant which provides that the term “other jertilizers” applies only to products of a kind used as fertilizers and contain, as an essential constituent, at least one of the elements nitrogen, phosphorus or potassium. .1t is quite clear that for any product to merit Classification under CET H 3105 as other fertilizers, the product must have nitrogen or phosphorus or potassium or their combination as an essential constituent providing the essential character to the product. The chemical elements – nitrogen,. phosphorus and potassium are also referred as macronutrients or primary fertilizer elements and are required in higher quantity by the plants.

4.2 Any product where the essential elements are not nitrogen or phosphorus or potassium or their mixture would not merit classification under CETII 3105. Further, the .specific exclusion of separate chemically defined compounds as laid down in chapter note 1(b) and in the INN aplctnatory Notes to the heading 3105.90, reinforce the above concluSion. It may also be noted that notifications issued under Fertilizer Control Order are not relevant for deciding classification under the Central Excise Tariff

22.3 On conjoint reading of the FCO, 1985; Paras pertaining to “Micronutrients and fertilizers” the composition of the subject goods and General INN explanatory Note to the Chapter 31, it is apparent that:-

i. a) Nitrogen, Phosphorous or Potassium are primary nutrients.

i. b) (Calcium, Magnesium and Sulphur are secondary nutrients.

i.e.) Iron (Fe), manganese (Mn), zinc (Zn), copper (Cu), boron (13), molybdenum (Mo), nickel (Ni) and^–Chlorine (Cl) arc micronutrients.

ii) Primary Nutrients (NPK) are required in the highest amount by the plants

iii) Micronutrients are essential plant nutrients that arc required in small quantity for plant growth and development.

iv) The product Yara Vita Bud Builder has pre dominance of Magnesium (24%) and Zinc (10%) and the presence of Phosphorous (2.5%) is insignificant to ascertain the Tariff Classification.

v) Considering the nature of the constituent and pre dominance of Magnesium and Zinc the product is not a good of Chapter I leading CTI1-3103 (Phosphatic fertilizer)

vi) The Circular No. 1022/10/2016-CX dated 06.04.2016 at Para 4 very categorically illustrates that “for any product to merit classification under CFI I-3105 as other fertilizers, the product must have Nitrogen or Phosphorous or Potassium or their combination as an essential constituent providing the essential character to the product. It means that the product must predominantly be a nitrogenous fertilizer or phosphatic fertilizer or potassic one or their any combination. Because Nitrogen or Phosphorous or Potassium arc macro nutrients or Primary fertilizing elements and required in higher quantity by the plants. That the product in the instant case has the predominance of Magnesium (24%)- secondary fertilizing clement and Zinc (10%)- Micro nutrient. There is no any specific mention of magnesium and Zinc fertilizer under chapter 31 of the C’l’A, which pertains to. fertilizers.

vii) Also, para 4.2 of the said circular further clarifies,

4.2 Any product where the essential elements are not , nitrogen or

phosphorus or potassium or their mixture 1vould not merit classification under CE111 3105. Further, the specific exclusion of separate chemically defined compounds ‘as laid clown in chapter note 1(b) and in the IISN Explanatory Notes to the heading 3105.90, reinforce the above conclusion. It may also he noted that notifications issued under Fertilizer Control Order are not relevant for deciding classification under the Central Excise Tariff

2.2 There is no specific heading in the tariff Or classification of micronutrients. However, where the micronutrient is a separate chemically defined compound, it will he Classifiable under the heading for that chemically defined compound under chapter 28 or chapter 29. For example, some of sulphate of micron nutrients are specifically covered
under CETH 2833.

22.4 The applicant has submitted the product is a immixture of P205, Magnesium, Boron and Zinc.

Para 5.2 of the said‘ Circular explains such mixtures: –

5. Mixtures of micronutrients/multi-micronutrients with Fertilisers are also manufactured and sold. They shall be classified according to their essential characters and general rules for interpretation of the schedule to the tariff Where the essential constituent giving character to the mixture is one .or more of the three elements namely Nitrogen, Phosphorous or Potassium the mixture shall be classified under any of the heading of Chapter 31, depending upon its composition. On the other hand, where the essential character of the product is that of mixture of micronutrients multi-micronutrients having predominately trace elements, it shall be classified under CETH 3824 as chemical products not elsewhere specified or included.

23. In addition, Note to the Chapter 31 and explanatory note to the CTH 3105 also excludes chemical defined compounds which might be used as fertilizers from the ambit of the Chapter 31 and CTH 3105 relevant Note 1B to the Chapter 31 and relevant portion of the explanatory notes to CTII 3105 is also produced below:

———-

Note 1 . (h) separate chemically defined compounds /Other than those answering to the descriptions in Note 2(a), 3(a), 4(a) or 5 below: or

Relevant portion relevant portion of the explanatory notes to CTH 3105

The heading excludes:

(a) Separate chemically defined compounds not specified in Notes 2 to S to this Chapter but which might he^– used as Fertilisers. e.g., 0171IMOni11111 chloride which falls in heading 28.27.

I observe the subject goods do not answer to the answering to the descriptions in Note 2(a), 3(a), 4(a) or 5 below. Also, the subject goods arc preparation based on micronutrients and composed of the mixture of _.the chemical compounds as discussed in forgoing paras. The subject goods i.e. YaraVita Bud Builder i.e. ‘Magnesium Hydroxide and Zinc Phosphate’, is a micronutrient preparation/mixture.

24. Further, It has also been observed that one substantial provision of the INN explanatory
note has note been reasoned upon/available in the cases relied upon by the applicants. When a ruling/adjudication order is passed sub-siltation, the ratio of such judgements cannot be said to be binding declaration of law. The provision deserves special ’emphasis inasmuch as ^–the General Explanatory notes of the I ISN pertaining to Chapter 31 made to clarify the intent of the law which is reproduced below:

“General” –

“This Chapter also excludes micronutrient preparations which are applied to seed, to foliage or to soil to assist in seed germination and plant growth. They may contain small amounts of the fertilizing elements nitrogen, phosphorus and potassium, but not as essential constituents (e.g. heading 38.24)”.

24.1 There is no dispute that the subject good are micronutrient preparation covered by schedule-I SI. No. 24, Sub-Heading 1 (g) — illicronutrients of Part A ^–and the same also confirms to the parameters mentioned therein. Also, the applicant themselves have submitted and accepted that the subject goods arc Micronutrient based fertilizer covered by Si. No. 24, Sub-Heading 1(g) of Part A of the FCO. 1985. Therefore, in terms of the above-mentioned General explanatory exclusion note to the Chapter 31 the subject goods arc out of purview of chapter 31 even if it contains small amount of fertilizing elements Phosphorus. Also, as per the said explanatory note the subject good is liable to fall under CTII 3824, as same being micronutrient preparation based on mixture of chemically defined compounds not specified anywhere.

In this regard, I place reliance on the case of Collector of Customs, Bombay vs. Business Forms — 2002 (142) ELT 18 wherein it was held that the I-ISN Explanatory Notes aid in the interpretation of the Headings of the Tariff and may be used as a safe guide for the same. The same ratio is followed in a number of decisions made by I Ion’ble Supreme Court.

It is also pertinent to mention here that the micronutrients falling under schedule I
Sub-Heading 1(g) of Part AI of the FC0,1985 are covered by Sr. No. 221 of the Schedule-I of IGST, as amended which covers Chapter/ Heading/ Sub-heading/ Tariff item of Chapter 28 or 38. The same are not covered by Sr. No. 241 of the Schedule-I which covers CTI1 3105 `other fertilizers’. The details of the description of the goods covered by the said. Sr. Nos. is produced below for reference.

Sr. No.	Chapter/ Heading/ Sub- heading/ Tariff item	Description of Goods
241 schedule	3105	Mineral or chemical Fertilisers containing two or three of the fertilising elements nitrogen, phosphorus and potassium; other Fertilisers; goods of this Chapter in tablets or similar forms or in packages of a gross weight not exceeding 10 kg; other than those which are clearly not to be used as fertilizers
221 Schedule	28 or 38	Micronutrients, which are covered under I serial number 1(g)I of Schedule 1, Part (A) of the Fertilizer (Control) Order, 1985 and are manufactured by the manufacturers which arc registered under the Fertilizer (Control) Order, 1985

Sr. No.

Chapter/ Heading/ Sub- heading/ Tariff item

Description of Goods

241 schedule

3105

Mineral or chemical Fertilisers containing two or three of the fertilising elements nitrogen, phosphorus and potassium; other Fertilisers; goods of this Chapter in tablets or similar forms or in packages of a gross weight not exceeding 10 kg; other than those which are clearly not to be used as fertilizers

221 Schedule

28 or 38

Micronutrients, which are covered under I serial number 1(g)I of Schedule 1, Part (A) of the Fertilizer (Control) Order, 1985 and are manufactured by the manufacturers which arc registered under the Fertilizer (Control) Order, 1985

Accordingly, I observe that the above fact also corroborates that the subject goods which arc preparation of micronutrients which are covered under I serial number 1(g) of Schedule .1, Part (A) of the Fertilizer (Control) Order, 1985 as discussed above are out of the purview of the CTI 13105. Accordingly, the subject goods are covered under Chapter 28 or 38 depending upon the composition of the subject goods.

26. In view of the forgoing discussion it can safely be concluded that the subject goods are
excluded from the purview of Chapter 31 and CTH 3105. The subject goods arc mieronutrient preparation/mixture. The same do contain small amount of Phosphorus as Phosphorus pentoxide P2O5 (2.5% as per COC, 6.9% in TDS), but the same is not the essential element providing essential character to the subject goods iri terms of the GRI (General Rules of Interpretation). The subject goods are micronutrient preparation “based on mixture of micronutrients which provide. essential character to the subject goods. The subject goods are composed of mixtures, of the chemical compounds as mentioned at para 13.3 above.

27. The subject goods arc sold in market as “YaraVita Bud builder” which as per Applicant’s submission is the brand name of the product “Magnesium Hydroxide and Zinc Phosphate Micronutrient Fertilizer”. Therefore, as discussed above, in terms of the General explanatory note and Note 6 to the Chapter 31 road with CBIC circular No. 1022/10/2016-CX dated 6-4-2016 the subject goods being a Micronutrient fertilizer which is a preparation applied to the foliage to assist seed germination and plant growth and containing small amount of phosphorous but not as essential constituent is rightly classifiable under CTII 3824.

In view of the above, the ratio of common parlance or trade or commercial parlance as held in the following case laws arc also being relied upon:

i) M/s. !harm. Aromatic Chemicals reported in 1997(95)E.L.T.203 (Born.)

ii) Dunlori India Ltd. & Madras Rubber Factory Ltd reported in 1983 (13) E.L.T. 1566

iii) (S.C.) in para_. 31 & 36 has observed as follows: .

M/s. Kantilal Nanchand and Co. reported in 2000-(123)E.L.T.311 (Born.)

iv) M/s. Bella Premier happy Hygiene Care Pvt. Ltd. reported in 2018 (17)Q.S.T.1 603 (Kar.). .

28. The applicant has relied upon the following case laws as mentioned at para above:

i) CCE & ST Vs. Aries Agrovet Industries — 2017.(7) TIVII 289. The applicant also submitted that the said decision was followed in the

a. Hindustan Agro Insecticides CCE & ST 2017-TIOL-3145-CESTAT.

b. CCEx. & ST Vs. Vikas Agro Products – 2017 (12) TMI 458 – CESTAT

The applicant also relied on the case of CCE, Mumbai Vs. Aries Agrovet Industries —2018 (6) TMI 1070

I observe that in the said cases the department proposed the classification of the Micronutrients under Heading 38.08 of the Central Excise Tariff Act, 1985 (CETA, 1985), which was not found to be the correct classification of the said products by the Hon’ble CI’,STAT. Therefore, the classification of the said products under [leading 31.05 of the CETA, 1985, adopted by the assesses, was upheld by the Ilon’ble CESTAT. In the case of CCEx. & ST Vs. Vikas Agro Products – 2017 (12) TMI 458 – CESTAT and in the case of Ilindustan Agro Insecticides v. CCE .& ST Guntur [Final Order No. A/31234-31236/20171 the Hon’ ble C.1.STAT has followed its earlier decision in the case of Aries Agrovet Industries Ltd. However, the issue in the present case is not limited to the classification of Micronutrients under Heading 38.08 or 31.05 only. The facts of the case are also different. Therefore, the decisions in those cases cannot be applied in the present case.

Similarly, the applicant has also relied upon the following judgements:

a) Vardhman Fertilizers & Seeds Vs. CC — 2017 (345) ELT 560 (Tri-Murnbai).

b) CCEx. Vs. Rallis India — 2005 (186) ELT 382 (Tri.—Chennai);

c) Assam Company Ltd Vs. CC — 2001 (133) ELT 110 (Tri.—Kolkata the Hon’ble Supreme Court in 2002 (146) ELT A2181; and

d) Transpek Industry Ltd Vs. CCEx. 2008 (230) ELT 351 (Tri.—Ahmd.)

e) CC (Exports) Vs. SIN Fertichem — 2018-VIL-71-CESTAT-CITE-CU

I observe the issue involved in the above-mentioned cases was different than the case art hand. The instant case is thus not similar to the cases mentioned herein above.

29.Further, In Bhavnagar University V. Palatine Sugar Mills Pvt. Ltd 2023(2) The Hon’ble supreme court held that

“It is well settled that a little difference in facts and additional facts may make a lot of difference in the precedential value of a decision”

Similarly, in Ambica Query works Vs State of Gujrat and other 1987 (1) SCC 213, the Hon’ble court observed:

“The ratio of any decision must be understood in the background of that case, it has been said long time ago’ that a case is only an authority for what it actually decides, and not what logically follows from it”

30. As discussed above 1 come to the conclusion that:

i) YaraVita Bud builder” is the brand name for “Magnesium Hydroxide and Zinc Phosphate Microriutrient Fertilizer”

ii) The subject goods are composed of mixture of chemical compounds containing mainly (Mgo, Zn3(PO4)2), Na2138-013.4H20) and small quantity of P205 as detailed at para 13.3 above.

iii) The subject goods are Micronutrient preparation which is used as Fertilizer.

iv) The subject goods are micronutrient fertilizers covered under schedule-1 Sl. No. 24, Sub-Heading 1 (g) — Micronutrients of Part A of FCO, 1985, confirming to parameters mentioned therein.

v) The subject goods has pre-dominance of Magnesium (24%) and Zinc (10%).

vi) The subject goods contain small amount of Phosphorus as. Phosphorus pentoxide P205 (2.5% as per COC, 6.9% in “IDS).

vii) Phosphorus is not the essential clement providing essential. character to, the subject goods in terms of the GRI (General Rules of Interpretation).

viii) The essential constituents .of the. Subject goods are its predominant elements Mg-24% and Zn-10%providing the essential character to the subject goods.

ix) The subject goods are excluded from chapter 31 and urn 3105 in terms of the General explanatory note and Note 6 to the Chapter 31 read with CHIC circular No. 1022/10/2016-CX dated 6-4-2016.

x) In terms of CHIC circular No. 1022/10/2016-CX dated 6-4-2016 as the essential character of the subject goods is that of mixture of micronutrients/multi-micronutrients having predominately trace elements viz. Magnesium, boron, and Zinc. It is classifiable under CTII 3 824 as .chemical products not elsewhere specified or included.

xi) In terms of general explanatory notes to Chapter 31 the subject good is liable to fall under CTII 3824, being micronutrient preparation based on mixture of chemically defined compounds not specified anywhere.

xii) In view of ii) to xi) above the subject goods correctly finds its place under CTH 3824.

31. In view of above, as the subject goods are micronutrient preparation and composed of mixture of chemical compounds. Also, the subject goods not separately defined chemically compounds and having specific heading under .Customs tariff. Accordingly, based on composition as the subject goods do not having any specific heading under the Customs tariff, it is classifiable under CTII 3824 which covers chemical products not elsewhere specified or included. Not having description covered in item headings under CTII 3824. The subject goods will specifically fall under the item heading CTI 3824 99 90 —others under CTI13824. The relevant portion of CTII 3824 is produced below for reference:

CTIH/HSN	Description
”3824	PREPARED BINDERS FOR FOUNDRY MOULDS OR CORES; CHEMICAL PRODUCTS AND PREPARATIONS OF TIIE CHEMICAL .OR ALLIED INDUSTRIES (INCLUDING . THOSE CONSISTING OF MIXTURES OF NATURAL PRODUCTS), NOT ELSEWI 11 IZE SPECIFIED OR INCLUDED
3824 99	— Other:
	……… ……….
3824 99 90	— Other”

32. I observe that in a similar matter the subject goods i.e. micronutrient fertilizers, covered by Sub-I loading 1(g) of Schedule 1 (Micronutrients), Part-A of Fertilizer Control Order, 1985 were held classifiable under 38249990.

i) 2022 (56) G.S.T.L. 365 (A.A.R. – GST – Guj.) – Advance Ruling No. GURGAAR/R/79/2020, dated 17-9-2020 in Application No. Advance Ruling/SGS1’&CGST/2019/AR/44 The said ruling was also upheld by the Advance Ruling (Appeal) No. GURGAAARJAPPEAL/2021/24, dated 6-7-2021 in Application No. Advance Ruling/SGST&CGS’172020/AR/44.

On the basis of .foregoing discussions and findings, I reach to conclusion that the

33. “YaraVita Bud Builder’- i.e. ‘Magnesium Hydroxide and Zinc Phosphate Micronutrient Fertilizer” is classifiable under CTII 3824, and more specifically under cri 38249900–others, of the first schedule to the Customs Tariff Act, 1975, as amended.

I rule accordingly.