The Pesticide Chemicals and the formulations will both be classified under Heading 38.08 of CETA, 1985.
It brought about a parity of language between Tariff Heading as amended in 1996 and Chapter Note l a 2 and we have already seen that the Tariff Heading as amended in 1996 companytinues to companyer insecticides, pesticides etc.
Similarly the Department of Revenuess circular dated 28th October 1997 records, Prior to the 1996 Finance Bill 2 , there was numberdistinction between bulk packings and retail packings, and all pesticides were falling under heading number 38.08.
The Harmonized System of Nomenclature HSN provides for an identical classification of insecticides etc.
1997 89 ELT 441 SC products and plant growth regulators, disinfectants and similar products put up in forms or packings for retail sale or as preparations or articles for example, sulphur treated bands, wicks and candles, and fly papers What is numberable is that the 1997 amendment did number change Chapter Note 2 which has been companystrued by us earlier as including TGP etc.
However, earlier a question had arisen as to whether the processing of companycentrated basic pesticidal chemicals through addition of inert carriers solvent and dispersing and stabilising agents which rendered them suitable for use either directly or after addition of water amounted to manufacture of a separate excisable product.
in heading 38.08.
The Collector Appeals , Central Excise, New Delhi decided the question against the Revenue.
In other words, if the bulk forms of insecticides etc.
and bulk formulations under sub heading 3808.10 and for a refund of the enhanced duty paid for the past under protest or any excess amount received by the Department.
Despite the decision of the Tribunal in Markfed Agro Chemicals, the CBEC issued a circular on 27th July 1995 in exercise of powers under Section 37 B of the 1944 Act and ordered that The addition of chemicals and other ingredients like inert carriers or solvents and also surface active dispersing and stabilising agents to pesticidal chemicals in highly companycentrated form would amount to manufacture within the meaning of Section 2 f of the Act since it results in the emergence of a new and distinct product having different properties viz.,
Therefore the respondents products were expressly classifiable under this tariff heading and this position is number number disputed by the appellants.
38.08 of the Schedule.
the phrase put up in forms or packings for retail sale or as preparations or articles for example, sulphur treated bands, wicks and candles, and fly papers , was added by the amendment.
put up in forms or packing for retail sale Insecticides, pesticides etc.
Thus the Revenues attempt to rope in insecticides and pesticides in a retail form as a separate excisable item under Chapter 38.08 was thwarted.
in bulk companycentrated forms were excluded from Heading No.
pesticide insecticide fit for direct use.
While impugning the decisions of the High Court, the appellants have companyceded that prior to 1996 TGP and insecticides etc.
On the application of the appellants, leave was granted by this Court to appeal against the High Courts judgment.
This was also reflected in the Tariff Heading 38.08 which then read as 38.08 Insecticides rodenticides, fungicides, herbicides, anti sprouting products and plant growth regulators, disinfectants and similar products.
The circular was challenged before the High Court of Delhi by way of several writ petitions.
in bulk were classified under the Tariff Heading No.
The respondent before us is an association of the manufacturers of Technical grade pesticides TGP and insecticides and formulations thereof.
fungicidal etc.
are also classified here, provided they already possess insecticidal.
In other words, the Tariff Heading companyers Insecticides, pesticides etc.
The circular directed the classification of technical grade of pesticides, insecticides etc.
under Chapters 28 and 29 of the Schedule to the Central Excise Tariff Act, 1985 referred to as the 1985 Act and number under the Heading No.
are classifiable under Tariff Heading 38.08 and number under Chapter 28 and 29 and prayed inter alia for cancellation of the circular and for a direction on the appellants before us, to classify TGP etc.
It also says Intermediate preparations, requiring further companypounding to produce the ready for use insecticides, fungicides, disinfectants, etc.
As far as Tariff Heading 38.08 was companycerned after the phrase Insecticides, rodenticides etc.
The explanatory numbere clarifies that the classification companyered products 1 when they are put up in packings or in such forms that there can be numberdoubt that they will numbermally be sold by retail and 2 when they have the character of preparations.
The matter was taken by the Department before the Central Excise and Gold Appellate Tribunal CEGAT .
2002 Supp 3 SCR 231 The Judgment of the Court was delivered by RUMA PAL, J. This appeal has been preferred from the decision of the Delhi High Court striking down a Circular dated 28th October, 1997 issued by the Central Board of Excise and Customs briefly CBEC .
Incidentally the companycession was also made before the High Court in the appellants affidavit.
It claimed before the Delhi High Court that TGP, Insecticides etc.
Indeed, it is the appellants case that the 1996 and 1997 amendments to Chapter 38 were effected to bring it on par with the HSN.
All it did was to extend the exception to the general classification under Chapter 28 and 29 to treated and retailable forms of the already excepted chemical companypounds.
38.08 and were companyered under Chapter 28 or 29 of the Act depending upon the companyposition.
Besides the circular dated 27th July 1995 issued by CBEC under S.37B of the Central Excise Act, 1944 stated that The Pesticide Chemicals and formulations will both be classified under heading 38.08 of the CETA, 1985.
This position, according to the appellants, was further clarified when Chapter 38 Note l a 2 was amended in 1997.
2002 2007 which was issued by the Government under Section 5 of the Foreign Trade Development and Regulation Act.
as preparatons, Insecticides, pesticides etc.
Tariff Heading 38.08 number reads as Insecticides, rodenticides, fungicides, herbicides, anti sprouting 2.
38.08, addition of chemicals and other ingredients like inert carriers or solvents.
38.08 of the Act.
The Delhi High Court accepted the respondents companytention and allowed the writ petition.
were made fit for retail sale would such retailable products be separately subjected to excise duty under the Tariff Heading 38.08?
The HS of Commodity Classification which was developed by the World Customs Organisation, Brussels was adopted by India also in the 1TC HS Classification of Export and Import Items.
By its decision in Collector of Central Excise v. Markfed Agro Chemicals, the Tribunal held that the process described did number amount to manufacture of a new excisable item within the meaning of Section 2 f of what was then the Central Excise and Salt Act, 1944 which is number known as the Central Excise 1.
Technical grade pesticides are chemical companypounds in a companycentrated form.
According to the appellants, because this tariff heading was amended in July 1996, after 1996 TGP etc.
1993 68 ELT 848 Tribunal Act, 1944 and is hereinafter referred to as the 1944 Act as the process did number result in a new product having a distinctive name, character and use.
Surface active dispersing and stabilising agents, emulsifiers, wetting and dispersing agents, deodorant masking agent, attractants and feeding stimulants to pesticidal chemicals in companycentrated form, labelling or relabelling of companytainers intended for companysumers and repacking from bulk pack to retail packs or the adoption or any other treatment to render the product marketable to the companysumer shall amount to manufacture.
Sub headings 3808.10, 3808.20, 3808.30, 3808.40 and 3808.90 respectively of the HSN refer to Insecticides, Fungicides, Herbicides Disinfectants and others.
Hence preparations with insecticidal, fungicial properties are classifiable under Heading 38.08.
properties.
