2026-VIL-319-CESTAT-AHM-CE
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CENTRAL EXCISE CESTAT Cases

Central Excise - Classification of "Sikko Fast" product as fertilizer or chemical product – Dept conducted a search and found that the appellant was clearing the "Sikko Fast" product as fertilizer, but it was actually a soil conditioner – Notice proposing classification of the product under CTH 38249090 and demanding Central Excise duty, interest, and penalty - Whether the "Sikko Fast" product manufactured by the appellant should be classified as a fertilizer under Chapter 31 or as a chemical product under Chapter 38 of the Central Excise Tariff Act, 1985 – HELD - The order of Commissioner (Appeals) discusses merit of the case to justify redetermination of classification of the product under chapter 38 instead of CTH 3105 claimed by the appellant. This order is however silent on invocation of extended period in this case to demand duty - The Department relied on the test report to conclude classification of the product under CTH 38249090 on the ground that Low percentage of Nitrogen, Phosphorus, and Potassium does not make them essential constituent so as to classify as other fertilizers - The test report relied upon by the Department was incomplete as it did not reply to certain queries raised, and the department did not send the sample to any other government laboratory for complete testing - The Tribunal had considered the classification of "soil conditioner" in the case of Narmada Bio-chem Pvt Ltd, and the principles enumerated in that case should be applied in the present case as well. The Adjudicating Authority is directed to examine the essentiality of the unanswered queries in the test report, the minimum percentage of NPK required for classification under Chapter 31, and the availability of any certificate from the Directorate of Agriculture considering the product as a fertilizer - The impugned order is set aside and remanded the matter to the Adjudicating Authority for a fresh decision – The appeal is allowed by remand
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