'Biozyme' sold in Kilo Litre shall be classifiable under chapter 310510099 of Central Excise Tariff Act: CESTAT [Read Order]

The Chandigarh bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that the product “Biozyme” sold in kilo litre shall be classifiable under chapter 310510099 of the Central Excise Tariff Act, 1975.

The appellant is engaged in the manufacture of Animal or Vegetable Fertilizers falling under chapter 31 of the Central Excise Tariff Act, 1985 and cleared under the brand name “Biozyme” claiming nil rate of Central Excise classifying under sub-heading 31010099 of the Tariff Act. The finished goods so manufactured in liquid form is packed in HDPE bottles of sixes of 100 ml, 250 ml, 500 ml, 1 litre and 5 litre and in few cases in barrels/drums of 200 litres classifying under tariff entry 31010099 at nil rate of duty.

The department held that “Biozyme” cleared and manufactured by the appellant in unit packs of 100 ml, 250 ml, 500 ml, one litre and 5 litre is classifiable under tariff entry 31051000 and not under tariff entry 31010099.

Technical Member Mr. C J Mathew and Judicial Member Mr. Ashok Jindal observed that we have gone through the dictionary meaning of kilogram and kilometer as per dictionary unit of mass equal to 1000 gms for 1 litre unit of volume of liquid or gas.

“Further, in Oxford dictionary the word is defined which means unit of mass is volume. Admittedly, kilogram and kilo litre have defined in kilo it should be sold in the form of kilo – it should be in liquid form under chapter 3101000 of the tariff talks about the tablet or similar form of packages less than 10 kgs. If we take the of nocitur a sociis, which means one or more they are un, therefore, it is clear that chapter heading covers 3105 the goods in sold forms and not in liquid form and for the goods 10 litre the classification has been admitted by the Revenue under tariff heading 310510099 of tariff Act. In that circumstance, we hold that the classification of the product under chaper 31051000 of the Act is not applicable and the product is correctly classifiable under chapter 310510099 of the tariff,” the Tribunal observed.

While allowing the appeal, the Tribunal held that “on going through the above rule, we find that means, if the commodity is sold, semi-sold, viscous or a mixture of sold and liquid and volume means, if the commodity is liquid or is sold by cubic measure. Admittedly, in this case, the goods have been sold by the appellant in kilo litre. Therefore, as per Legal Metrology (Packaged Commodities) Rules, 2011, the goods are appropriately classifiable under chapter 310510099 of the Tariff Act.”

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