Excel Crop Care Limited Vs Commissioner of Customs (CESTAT Mumbai)
Mumbai: In a decision with implications for the agricultural inputs sector, the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Mumbai, has ruled that “Liquid Seaweed Concentrate (Crop Plus)” is to be classified as a fertilizer under Customs Tariff Item (CTI) 3101 0099, rather than as a plant growth regulator under CTI 3808 9340. The ruling, in the case of Excel Crop Care Limited versus Commissioner of Customs, sets aside a previous order that sought to reclassify the imported goods and demand differential customs duty.
The case originated when Excel Crop Care Limited imported “Liquid Seaweed Concentrate (Crop Plus)” and initially classified it as a fertilizer under CTI 3101 0099, availing a concessional rate of basic customs duty under Notification No. 12/2012-Cus. The goods were cleared for home consumption based on self-assessment.
Subsequently, a post-clearance audit by the Customs Department raised an objection. The department contended that the imported product was more appropriately classifiable as a plant growth regulator under CTI 3808 9340. This reclassification would have rendered the imported goods ineligible for the concessional duty rate previously claimed by Excel Crop Care Limited, leading to a demand for differential duty.
