Attention is invited to the instructions contained in Board's Circular No. 26/90-CX.3 dated 26.6.90, clarifying that 'micro nutrients' would be appropriately classifiable under heading No. 38.08 as "plant growth regulator'.

2.     Now the Indian Micro Fertilizers Manufacturers' Association has represented that 'micro nutrients' should be classified under Heading 31.05 as 'other fertilizers'. They have also produced certificates issued by various Agriculture Universities as evidence in support of their claim.

3.     The Board has carefully re-examined the entire issue in consultation with the Ministry of Agriculture and the Chief Chemist, CRCL, New Delhi. The Ministry of Agriculture has clarified that the Micronutrients listed under Sr. No. 1 (F) of Schedule 1 Part (A) of the Fertilizer (Control) Order, 1985 and their mixtures (either or without N.P.K) as notified by the Central Government or a State Government has been recognised as fertilizers under Fertilizer (Control) Order, 1985. The Chief Chemist has also opined that in technology and trade micronutrients are classifiable along with fertilizers. Further, in terms of Rule (4) of the interpretative rules of the Central Excise Tariff micronutrients would merit classification as fertilizers.

4.     Therefore, it is clarified that micronutrients listed under Sr. No. 1 (f) of Schedule 1 Part (A) of the Fertilizer (Control) Order, 1985 and their mixture (with or without N.P.K) as notified by the Central Government or State Government would be appropriately classifiable under heading No 31.05 as "other Fertilisers".

5.     The above clarification may be brought to the notice of the lower filed formations and the trade interests may also be suitably advised.

6.     Board's earlier circular no. 26/90-CX.3 dated 26.6.90 accordingly stands withdrawn.

7.     All pending assessments may be finalised on the above basis.