Concessional Duty Denied as Boronated Calcium Nitrate is Distinct from Calcium Nitrate: CESTAT Ahmedabad

Yara Fertilizers India Pvt Ltd Vs Commissioner of Customs (CESTAT Ahmedabad)

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Ahmedabad, adjudicated three appeals filed by the appellant concerning denial of concessional customs duty on imports of “Yaraliva Nitrabor Calcium Nitrate with Boron.” The dispute pertained to whether the imported product qualified for concessional duty under Entry No. 225(I)(b) of Notification No. 50/2017-Cus, which applies to “Calcium Nitrate” as a water-soluble fertilizer.

The appellant had classified the imported product under CTH 31026000 and claimed concessional duty, contending that calcium nitrate was the main constituent and that the addition of a small percentage of boron did not alter its essential character. It was argued that the product remained commercially and functionally calcium nitrate and should therefore qualify for exemption. The appellant also contended that reassessment of Bills of Entry was invalid in the absence of an appeal against the original assessment.

The Revenue denied the exemption, asserting that the imported product was “Boronated Calcium Nitrate,” which is distinct from “Calcium Nitrate” covered under the notification. It was argued that exemption notifications must be strictly interpreted and that the burden of proving eligibility lies on the assessee. The Revenue also maintained that show cause notices under Section 28 of the Customs Act were valid even without challenging the original assessment orders.