RANADEY MICRONUTRIENTS Vs. COLLECTOR OF CENTRAL EXCISE

JUDGEMENT

(1.) These appeals concern the classification of micronutrients for the purposes of Excise duty. Micronutrients are mixtures of soluble salts of elements like calcium, magnesium, manganese, zinc, iron copper, boron and molybdenum. They are mixed in stated percentages to get a formulated product which assists the growth of plants. The appellants manufacture micronutrients.

(2.) The facts being similar, we set out those of one of the two appeals.

(3.) During the period October, 1989, to November, 1989, samples of micronutrients were drawn and tested by the Deputy Chief Chemist of the Union of India who opined that micronutrients were not "plant growth regulators". However, on 6th November, 1989, the Collector of Central Excise issued to the appellants (in Civil Appeal No. 5404 of 1983), a notice to show cause why the micronutrients made by them should not be classified as "plant growth regulators"under heading 38-08-90. The show-cause notice related to the period 1st April, 1986, to 23rd September, 1989. The appellants showed cause and led evidence at the personal hearing before the Collector on 6th December, 1989. On 11th December, 1989, an Addendum was issued to the show-cause notice dated 6th November, 1989, which required the appellants to show cause why their micronutrients should not be classified under heading 38.23 as "residual products of chemical or allied industries, not elsewhere specified". On 22nd February, 1990, a Corrigendum was issued to the show-cause notice aforementioned which sought to classify the micronutrients under heading 38.23 as "chemical products and preparations of the chemical or allied industries (including those consisting of mixture of natural products) not elsewhere specified". On 14th April. 1990, the appellants showed cause.