ORDER

These appeals concern the classification of micronutrients for the purposes of Excise duty. Micronutrients are mixtures of soluble salts of elements like calcium, magnesium, manganese, zinc, iron, copper, boron and molybdenum: They are mixed in stated percentages to get a formulated product which assists the growth of plants. The appellants manufacture micronutrients.

2. The facts being similar, we set out those of one of the two appeals.

During the period October, 1989, to November, 1989, samples of micronutrients were drawn and tested by the Deputy Chief Chemist of the Union of India who opined that micronutrients were not "plant growth regulators". However, on 6th November, 1989, the Collector of Central Excise issued to the appellants (in Civil Appeal No. 5404 of 1983) a notice to show cause why the micronutrients made by them should not be classified as "plant growth regulators" under heading 38.08.90. The show-cause notice related to the period 1st April, 1986, to 23rd September, 1989. The appellants showed cause and led evidence at the personal hearing before the Collector on 6th December, 1989. On 11th December, 1989, an Addendum was issued to the show-cause notice dated 6th November, 1989, which required the appellants to show cause why their micronutrients should not be classified under heading 38.23 as "residual products of chemical or allied industries, not elsewhere specified". On 22nd February, 1990, "Corrigendum was issued to the show-cause notice aforementioned which sought to classify the micronutrients under heading 38.23 as "chemical products and preparations of the chemical or allied industries (including those consisting of mixture of natural products) not elsewhere specified". On 14th April, 1990, the appellants showed cause.

3. On 20th June, 1990, a circular (now called "the earlier circular") was issued by the Central Board of Excise and Customs (now called "the Board"), addressed to all Collectors of Central Excise, on the subject of the classification of micronutrients for the purposes of Central Excise. The circular stated that a doubt had been expressed regarding the classification of micronutrients, namely, whether they should be classified under heading 31.05 as "fertilisers" or under heading 38.08 as "plant growth regulators". The matter had been examined in consultation with the Deputy Chief Chemist who had opined that heading 31.05 covered only those compounds in which one of the elements was nitrogen or phosphorous or potassium. Since micronutrients did not contain these, micronutrients did not merit classification as fertilisers under heading 31.05. The opinion of the Deputy Chief Chemist was that micronutrients contained other elements which made them classifiable as "plant growth regulators". "In view of the above", the earlier circular stated, "it is clarified that the appropriate classification of the product `plant growth regulator would be under heading 38.08 of CET". The earlier circular required the Collectors of Central Excise to bring the clarification it contained to the notice of the lower field formations and suitably advise trade interests. The earlier circular also stated, "All pending assessments may be finalised on the above basis".

4. On 23rd July, 1990, the Collector of Central Excise wrote to the appellants a further letter in connection with the show-cause notice dated 6th November, 1989. It cancelled the Addendum dated 11th December, 1989, and the Corrigendum dated 22nd February, 1990, and reverted to the stand taken in the show-cause notice itself, namely, that the micronutrients were classifiable as "plant growth regulators" under heading 30.08. After hearing the appellants, the Collector confirmed the demand made in the show-cause notice on 6th November, 1990. The appellants appealed to the Central Excise and Gold (Control) Appellate Tribunal which, by the order under appeal, upheld the classification but limited the demand to the period of six months immediately pr