2007 (3) TMI 101 - AT - Central Excise

Classification Appellant contended that the product DIL VIT D3-200 AND DIL VIT D3-500 ARE classifiable under Chapter Heading 23.02 Held appellant contention is correct and allowed appeal

Summary

Issues:
Classification of products "DIL VIT D3-200" and "DIL'VIT D3-500" under Chapter Heading 23.02 or Chapter Heading 29.36.

Analysis:
The Appellate Tribunal CESTAT, Mumbai, addressed the issue of classification of products "DIL VIT D3-200" and "DIL'VIT D3-500" in the context of appeals against the Commissioner of Central Excise (Appeals) order. The Tribunal noted that previous judgments, including Glaxo India Limited v. CCE and Tetragon Chemie Pvt. Ltd. v. CCE, had established that such products, used in animal feeding, fall under Chapter Heading 23.02. These products, even if not obtained by extensive processing of vegetable or animal material, are classified under this heading.

In the present case, the demands raised in show cause notices for classifying the products as mixtures of Vitamin under Chapter Heading 29.36 were initially dropped by the Additional Commissioner, following the Tribunal's precedent in the Glaxo (India) Limited case. However, the Commissioner (Appeals) reversed this decision, arguing that the manufacturing process of the products did not involve the required processing of vegetable or animal material as per the note to Chapter 23 of the schedule to the CETA, 1985. The Commissioner contended that the products started with Cholesterol Acetate, underwent several conversions, and were mixed with various substances before the final product was obtained.

Despite the manufacturing process details, it was undisputed that the products were intended for animal feeding. Relying on the established legal principles from previous judgments, the Tribunal concluded that the products fell under Chapter Heading 23.02. Therefore, the impugned order was set aside, and the appeals were allowed. The decision was pronounced and dictated in court on 27-3-2007.