LexUNION OF INDIA AND ORS. versus PESTICIDES MANUFACTURING & FORMULATORS ASSOCIATION OF INDIA
Open in Lexace · Ask the AI about this caseJudgment (excerpt)
UNION OF INDIA AND ORS. v. PESTICIDES MANUFACTURING & FORMULATORS ASSOCIATION OF INDIA OCTOBER 23, 2002 [SYED SHAH MOHAMMED QUADRI AND RUMA PAL, JJ.] A B Central Excise Tariff Act, 1985-Chapters 28, 29 and 38 of the Schedule-Technical Grade of Pesticides (TGP), insecticides-Classification of-Prior to 1996 these chemicals classified under heading No 38.08- C Amendments to Chapter 38 in 1996 and I 997-Circular issued directing that these chemicals in bulk concentratedform classifiable under Chapters 28 and 29 -Whether amendments resulted i;1 removing these chemicals from Chapter 38 and placing them in Chapters 28 and 29-Held no since 1996 amendment extended the incidence of excise d111j1 to formulations .from and retail packages D of the concentrates and I 997 amendmrnt extended the exception to the general classification under Chapters 28 and 29 to treat and retnilab/e forms of the already excepted chemical compounds. Technical grade of pesticides (TGP), insecticides were classified under heading No 38.08 of the Schedule to Central Excise Tariff Act, 1985 E prior to 1996. In 1996 and 1997 there were amendments to Chapter 38. Central Board of Excise and Customs issued a Circular directing classification of TGP, Insecticides etc. under Chapter 28 and 29 of the Act. Respondent-Association filed a writ petition contending that TGP, Insecticides etc. are classifiable under Tariff Heading 38.08 and prayed for cancellation of the Circular and for a direction to appellants-Customs F and Excise Board to classify TGP etc and bulk formulations under heading 3808.10. High Court allowed the writ petition and cancelled the Circular .. Hence the present appeals. The question which arose in these appeals was whether the amendments of 1996 and 1998 to Chapter 38 of the Schedule to the Central G Excise Tariff Act, 1985 served to remove bulk TGP, insecticides etc from that Chapter and place them in Chapters 28 and 29 of the Act. Appellants contended that prior to 1996, TGP and insecticides etc. in bulk were classified under Tariff Heading No. 38.08 of the Act and after 231 H 232 SUPREME COURT REPORTS [2002] SUPP. 3 S.C.R. A amendment in 1996, TGP etc in bulk concentrated forms were excluded from Heading No. 38.08 and were covered under Chapter 28 or 29 of the Act depending upon the composi~ion which was further clarified by amendment in 1997 to Chapter 38 Note l(a) (2) and that the amendments to Chapter 38 in 1996 and 1997 served to exclude TGP or insecticides etc. B in bulk forms from Chapter 38. Respondent contended that the amendments in 1996 and 1997 made no difference to the classification of bulk pesticides and insecticides etc; that the amendments in fact served the purpose of extending the liability to excise to insecticides, pesticides etc . .in retailable forms and that the C classification of TGP insecticides etc. in bulk form under Tariff Heading 38.08 would be keeping with the rules for interpretation of the schedule to the 1985 Act. Dismissing the appeals, the Court D HELD: I.I Chapter 28 and Chapter 29 of the Schedule to the Central Excise Tariff Act, 1985 are general provisions relating inter alia to separate chemical compounds. Chapter 38 is the specific chapter dealing with particular chemical compounds viz., insecticides, pesticides etc. In keeping with the Rules of the Schedule to the 1985 Act, the TGP manufactured by the respondent are classifiable under the particular subsequent E provision and not under the residuary headings occurring earlier. (240-B, CJ 1.2. It was not the intention of the I 996 amendment to exclude concentrates of insecticides etc. in bulk form from Chapter 38 but to F extend the incidence of excise duty to formulations from and retail packages of the concentrates. (240-G, HJ 1.3. The 1997 amendment did not change Chapter Note (2) which has been construed earlier as includi11g TGP etc. All it did was to extend the exception to the general classificati'Jn under Chapters 28 and 29 to G treat and retailable forms of the already excepted chemical compounds. It brought about a parity of language between Tariff Heading as amended in 1996 and Chapter Note l(a)(2) and the Tariff Heading as amended in I 996 continues to cover insecticides, pesticides etc. 1242-B-CJ 1.4. The Harmonized System of Nomenclature (HSN) provides for H an identical classification of insecticides etc. in heading 38.08. Indeed, it ._ .. U.OJ "· PESTICIDE
Excerpt shown. Read the full judgment & AI analysis in Lexace.