Classification of yaravita zintrac under Customs Tariff Act: CESTAT grants Interim Relief to Yara Fertilizers India [Read Order]

yaravita zintrac - Customs Tariff Act - CESTAT - Interim Relief - Yara Fertilizers India - taxscan

Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Mumbai grants interim relief to Yara Fertilizers India and classifies yaravita zintrac under Customs Tariff Act.

In this appeal of M/s Yara Fertilizers India Private Limited the dispute pertains to composition of the imported ‘yaravita zintrac (zinc oxide suspension concentrate)’ as ‘other fertilizer’ for being subjected to rate of duty applicable for tariff item 3105 9090 of the First Schedule to Customs Tariff Act, 1975 which, upon ascertainment at the behest of the assessing officer, was reported to contain 09.9% nitrogen as fertilizing agent and 39.5% zinc as micronutrient and, thereby, necessitating classification elsewhere.

In the proceedings before the original authority, the claim for classification as ‘other fertilizer’ on the basis of exclusions from other headings in the chapter was discarded owing to the high presence of zinc as micronutrient meriting the alternative classification of tariff item 3808 9340 corresponding to ‘plant growth regulators’ in the First Schedule to Customs Tariff Act, 1975. In the order, the first appellate authority has held that “the goods are neither classifiable as ‘other fertilizer’ nor as ‘plant growth regulator’ but as tariff item 3824 9090 corresponding to ‘chemical products not elsewhere defined’ in the First Schedule to Customs Tariff Act, 1975.”

C J Mathew, Technical Member and Ajay Sharma, Judicial Member held that “ Products in packed form are assigned special enumeration within heading 3105 of First Schedule to Customs Tariff Act, 1975 besides ‘other fertilizers’ as a residuary enumeration and it is on the appropriateness of this tariff item that the dispute revolves.

We, therefore, set aside the impugned order for having exceeded jurisdiction. The appeal of the importer before the first appellate authority is restored for a fresh decision on the correctness of the order of the original authority in the light of our enunciation.”

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Yara Fertilizers India Private Limited vs Commissioner of Customs (NS-V)

Counsel for Appellant:   Shri T Viswanathan

Counsel for Respondent:   Shri Bhushan Kamble

CITATION:   2022 TAXSCAN (CESTAT) 342

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