2015 (1) TMI 939 - AT - Central Excise

Denial of the benefit of captive consumption Notification No. 67/95-C.E., dated 16-3-1995 - final products were exempted from payment of Central Excise duty - Held that - Vitamin premix and mineral premix are mixtures of starch preparations to which nutrients i.e. vitamins and minerals are added and merit classification under CETH 1901 as preparation of starch attracting Nil rate of duty. The ld. Counsel made additional submissions in writing to the effect that in any case the goods i.e. premixes will be exempted intermediate products under Notification No. 67/95 as amended by Notification No. 35/2001. According to him after the amendment by insertion of new clause at serial No. 6 under which exemption is available to intermediate products even if used in the manufacture of exempted final products provided the manufacturer discharged the obligation prescribed in Rule 6 of the Cenvat Credit Rules. Since we have already decided the classification under Chapter 19 attracting Nil rate of duty. We do not find it necessary to go into the issue of Notification No. 67/95 - Decided against Revenue.

Summary

Issues:
Classification of Vitamin Premix under Central Excise Tariff Heading 2936, Classification of Mineral Premix under Chapter Heading 2851, Exemption under Notification No. 67/95-C.E.

Classification of Vitamin Premix under Central Excise Tariff Heading 2936:
The case involved the classification of Vitamin Premix under Central Excise Tariff Heading 2936. The Tribunal analyzed the process of manufacturing Vitamin Premix, which involved the addition of nutrients like Vitamins and Minerals to starch. The Tribunal referred to relevant tariff entries and chapter notes to determine the correct classification. It was concluded that the Vitamin Premix did not fall under Tariff Heading 2936 as it was a starch-based product with added nutrients, not primarily used as vitamins. The Tribunal also cited a Larger Bench decision and Supreme Court affirmation to support the classification under Chapter Heading 1901, attracting a nil rate of duty.

Classification of Mineral Premix under Chapter Heading 2851:
The issue of classifying Mineral Premix under Chapter Heading 2851 was addressed by the Tribunal. The Tribunal examined the composition and manufacturing process of Mineral Premix, which involved adding minerals to starch preparation. It was observed that the Mineral Premix was a mixture of ingredients and not a separate chemically defined compound. The Tribunal referred to chapter notes and held that the Mineral Premix did not qualify for classification under Chapter Heading 2851. Instead, it was classified as a preparation of starch under Chapter Heading 1901, attracting a nil rate of duty.

Exemption under Notification No. 67/95-C.E.:
Regarding the exemption under Notification No. 67/95-C.E., the Tribunal noted that the appellant had argued for exemption of the premixes as intermediate products under the notification. However, since the Tribunal had already classified the premixes under Chapter 19 attracting a nil rate of duty, it deemed it unnecessary to delve into the issue of Notification No. 67/95. The Tribunal rejected the Revenue's appeals, affirming the classification of both Vitamin Premix and Mineral Premix and the exemption under the relevant tariff headings.

In conclusion, the Tribunal's judgment clarified the classification of Vitamin Premix and Mineral Premix under the Central Excise Tariff, emphasizing the specific composition and manufacturing processes of the products. The analysis of relevant tariff entries, chapter notes, and legal precedents guided the Tribunal in determining the correct classifications. The Tribunal's decision to reject the Revenue's appeals upheld the classification of the premixes under Chapter Headings 1901 and the exemption under the applicable notification.