LEEDS KEM Vs. COMMISSIONER OF C. EX.

JUDGEMENT

(1.) M /s. Leeds Kem (hereinafter referred to as 'the assessees') were engaged in the manufacture of products including "plantozyme" which was classified by them as bio -fertilizer under Central Excise Tariff Heading No. 31.01 attracting NIL rate of duty. Their classification lists, filed from time to time, claiming classification of the product under the said Tariff Heading were approved by the Department and, accordingly, the assessees were manufacturing and clearing the goods. While so, the Department wanted to change classification of "plantozyme" from TH 31.01 to TH. 38.08 and demand duty at the rate applicable to the latter heading. Accordingly, five show cause notices (SCNs) were issued to the assessees as below : -

(2.) WE have carefully examined the impugned orders, grounds of the appeals and cross -objections and connected records of the case. We have also heard both the sides.

(3.) THE principal issue involved in these appeals is whether the product viz. "plantozyme" is classifiable under TH 31.01 as bio -fertiliser as claimed by the assessees or under TH 38.08 as plant growth regulator as claimed by the Revenue. Chapter 31 covers "fertilizers" while Chapter 38 is for "miscellaneous chemical products". The rival Tariff entries arising for our consideration are the following :