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a) The subject goods are separate chemically defined compounds. As per the Chapter Note 1 (b) to Chapter 31, the said chapter does not cover separate chemically defined compounds other than those answering to the description in Chapter Note 2(a), 3(a), 4(a) or 5 of Chapter 31. The subject goods do not fall under the aforesaid chapter notes. Thus, the subject goods cannot be classified in Chapter 31 in terms of the exclusion clause as per Note 1(b) of Chapter 31.

8. The Ld. Commissioner of Customs (Appeals), vide the impugned Order in Appeal dated 24.12.2014, found that:

a) In the instant case, the subject goods are separate chemically defined compounds which merit classification under the CTH 2922 and the HSN Explanatory Notes which defines the exclusion clause to CTH 3105 also confirms the same.

b) Further, the small amount of nitrogen present in the subject goods is insignificant for any purpose whatsoever and therefore the goods would not cover as per the Chapter Note 6 to Chapter 31.

j) The subject goods are not classifiable under CTI 29224990 as held in the impugned orders. That as per Note 1(a) to Chapter 29, inter alia, the said chapter only covers separate chemically defined organic compounds, whether or not containing impurities. Further, the HSN Explanatory Notes to Chapter 29 clarify that a separate chemically defined compound consists of one molecular species with a constant elemental ratio that can be represented by a definitive structural diagram. Furthermore, HSN Explanatory Notes also clarify that separate chemically defined compounds containing other substances deliberately added during or after their manufacture (including purification) are excluded from Chapter 29.

"11. We have perused the provisions under Chapter 29 & Chapter 31. Note 1 to Chapter 29 provides for inclusion of separate chemically defined organic compound, whether or not containing impurities, whereas, Chapter 31 provides for exclusion of separate chemically defined compounds (other than those answering to the descriptions in Note 2(a), 3(a), 4(a) or 5 below). Therefore, the first issue to be decided is whether the product in question can be considered as separate chemically defined compound as Revenue is arguing or otherwise. From the manufacturing process, as well as expert opinion, it is apparent that Nitrogen is added deliberately in the process simultaneously, along with Zinc Oxide, as also EDTA acid.