Godrej Agrovet Ltd Vs Commissioner of CGST (CESTAT Mumbai)
CESTAT Mumbai held that products Zymegold Plus and Dripzyme are classifiable under CTH 3101 as Fertilizer and not as Plant Growth Regulator.
Facts- The issue involved herein is whether the products Zymegold Plus and Dripzyme are classifiable under CTH 3808 – ‘Plant Growth Regulator’ as re-classified by the department or under CTH 3101 – ‘Fertilizer’ as claimed by the Appellant?
Conclusion- There is a difference between fertilizer and plant growth regulator. A fertilizer will promote growth of the plant by providing nutritional support and will not inhibit it, whereas a Plant Growth Regulator stimulates plant growth without providing any nutrition to the plants. It’s like a tonic which promotes/inhibits the growth by affecting the structure at the physiological level.
In fact plants cannot survive without essential nutrient elements supplied from fertilizers or from organic and inorganic chemical in the soil. Undisputedly, for an item to be classified as fertilizer under Chapter 31, presence of any one or more of the N,P,K (i.e. Nitrogen, phosphorus and potassium) as essential constituent is a sine qua non.
In Bahar Agrochem & Feeds Ltd. it is held that the product Zymegold contains nitrogen and chlorine and therefore suffices for characterization of the product as fertilizer.
Held that the impugned order is liable to be set aside as the products in issue are fertilizers and therefore the appellants have rightly classified their products.
FULL TEXT OF THE CESTAT MUMBAI ORDER
These appeals have been filed assailing the orders dated 1.4.2015 passed by Commissioner (Appeals), Pune Appeals II by which the learned Commissioner (Appeals) upheld the demand for the period July, 2011 to January, 2013 along with penalty. Since the issue is common in all these appeals therefore we are disposing of them with this common order. For ease of reference, a table is produced hereunder in order to give relevant dates/details of each of the appeals:-
