1. This appeal is directed against the orders passed by the CCE (A), Kochi. In terms of that order, he classified the goods viz. copper sulphate under heading 2833.00 of the CET.2. Shri N. Subramanian, the learned Counsel appearing for the appellants contended before us that the appellants sought classification of the goods in question under tariff heading 3808.10.
In this connection he drew our attention to Chapter 38 wherein it is specifically mentioned that this chapter does not cover separate chemically defined elements or compounds with the exception of the following and in that exception Clause (2), insecticides, rodenticides, fungicides, herbicides, anti-sprouting products and plant-growth regulators, disinfectants and similar products are mentioned. He therefore stated that in view of the Chapter Note l(a), these separate chemically defined elements or compounds will fall under Chapter 38 which are specifically mentioned so long as they answer to the use as mentioned under Chapter Note I(a) to (c). The relevant portion of the chapter Notes under Chapter 38 is reproduced below for convenience of reference: (a) Separate chemically defined elements or compounds with the exception of the following: (2) Insecticides, rodenticides, fungicides, herbicides, anti-sprouting products and plant-growth regulators, disinfectants and similar products; (3) Products put up as charges for fire-extinguishers or put up in fireextinguishing grenades (heading No. 38.13); (b) Mixtures of chemicals with foodstuffs or other substances with nutritive value, of a kind used in the preparation of human foodstuffs (generally heading No. 21.07).
In this connection he also drew our attention to the Certificate issued by the Government of India, Central Insecticides Registration Committee. In that particular certificate, it was decided that the appellants have to be registered under the various provisions of the Insecticides Act, 1968 for their product Copper Sulphate and this copper sulphate was treated as Insecticides in terms of the said certificate. The learned Counsel also drew our attention to the licence issued to the appellants for the manufacture of Insecticides and in that licence copper-sulphate is mentioned as Insecticides. In this view of the matter he contended that the goods are correctly classifiable under tariff heading 3808.10. He also drew our attention to the decision of the Hon'ble High Court of Kerala in the case of Deputy Commissioner of Sales Tax v. Prakash Traders reported in Volume 67, page 240. The relevant portion of the said judgment is reproduced below for convenience of reference : 2. We heard counsel for the Revenue, Mr. Nambiar. It was argued that the Appellate Tribunal was in error in holding that copper-sulphate is a pesticide and that the second sale of copper-sulphate by the respondent assessee is not liable to be taxed. We are unable to agree. A pesticide is a substance for killing pests. It is a substance used to destroy plant or animal that is harmful to man.
"Pesticides are classified according to the type of organisms they attack; for example, substances that kill insects are known as insecticides; agents that kill fungi are known as fungicides." (Encyclopedia Americana, Vol. 21, page 655).
As per Section 3(e) of the Insecticides Act, 1968, 'insecticide' is defined to include any substance specified in the Schedule.
Copper-sulphate is an item listed in the Schedule for the purpose of Section 3(e) of the Act. The Appellate Tribunal has also stated that the order issued by the Government of Kerala Taxes (B) Department, No. G.O. Pt. 443/83/TD, dated 15th July, 1981 has clarified that all insecticides are pesticides. In the Random House Dictionary of the English Language, copper-sulphate has been specified at page 322 as a "blue vitriol". At page 163 of the dictionary "blue vitriol" has been specified as: "a salt, occurring in large transparent, deep-blue triclinic crystals, appearing in its anhydrous state as a white powder : used chiefly as a mordant, insecticide, fungicide, and in engraving. Also called blue copper as, blue stone, copper-[sulphate] cupric [sulphate]." In the light of the above, we have no hesitation to hold that the Appellate Tribunal was justified in holding that copper-sulphate is a pesticide as specified in the First Schedule, entry 55 of the Act.
On this basis, the 2nd sales by the respondent will be eligible for exemption. The Appellate Tribunal was justified in holding so.
No interference is called for with the decision of the Appellate Tribunal. This revision is without merit. It is dismissed in limine.
The learned Counsel also produced a photostat copy of the approved classification list by the Supdt. of Central Excise, Chikmagalur Range under Belgaum Collectorate wherein copper-sulphate, insecticides, fungicides etc. etc. have been classified under chapter heading 3808.10. The learned Counsel therefore contended that the appellants goods viz. copper-sulphate has to be classified under heading 3808.10.
3. We have heard Shri S. Murugandi, the learned DR for the department.
He stated that copper sulphate can be used for other purposes also and this is specifically mentioned under heading 2833.00. He, therefore, contended that the impugned order is in accordance with law and the appeal may be dismissed.
4. We have heard the rival contentions. It is now seen that in terms Chapter 38, the items which are specifically mentioned therein are insecticides, rodenticides, fungicides, herbicides etc. Insecticides are specifically mentioned therein. In the circumstances of this case what we have to decide is whether copper sulphate is insecticides or not. In this connection we take note of the fact that certificate has been granted to the appellants by the Government of India, Central Insecticides Registration Committee, Ministry of Agriculture under which the appellants have been registered under the Insecticide Act, 1968 for the manufacture of copper-sulphate, by the authorities therein. In terms of that certificate copper-sulphate is mentioned as insecticidies. The Government of Kerala has also issued a licence for the manufacture of Insecticides under Rule 9(2) and in that licence copper-sulphate is specifically mentioned as insecticides. This position also stands confirmed by the judgment of the Hon'ble High Court of Kerala cited supra which has been relied upon by the appellants. It is true that, the abovesaid decision of the Hon'ble High Court was rendered in the context of the Sales Tax Act. In any event the principle enunciated in the said judgment clearly goes to show that copper sulphate was treated as insecticides. This principle applies to the facts of the appellants' case. It is clear that Chapter Notes 38 specifically mentions insecticides. We further find that Belgaum Collectorate has also classified copper sulphate and insecticides etc.
under chapter heading 3808.10 of the CET which also strengthens the case of the appellants. In view of the above, we hold that the impugned orders are not \in accordance with law and we set aside the same and classify the goods of the appellants under heading 3808.10 and allow the appeal with consequential relief to the appellants.