2018 (4) TMI 754 - AT - Central Excise

Classification of goods - Di-Calcium Phosphate - Revenue has classified the goods under Chapter 28 of heading 28352500 of the Central Excise Tariff Act - appellant contested the said view and submitted that their product is correctly classifiable under Central Excise Tariff heading 23099090 - Held that - Chapter 23 clearly mentions an inclusive scope of heading 2309. It does not mean items other than what is mentioned in the note cannot be classified under 2309, if otherwise fits the description. It is clear that Di-calcium phosphate manufactured by the appellant is used as a supplement in the animal feed manufacture. Heading 2309 clearly mentions preparation of a kind used in animal feeding - reliance placed in the case of BAMNI PROTEINS LTD. Versus CENTRAL BOARD OF EXCISE & CUSTOMS 1999 (8) TMI 101 - HIGH COURT OF JUDICATURE AT BOMBAY , where it was held that the view of the Appellate Tribunal that Di-calcium Phosphate animal feed grade is classifiable under Heading 23.02 and sub-heading 2302.00 of the Central Excise Tariff Act, 1985 stands confirmed. Appeal allowed - decided in favor of appellant.

Summary

Issues: Classification of goods under Central Excise Tariff Act

In this case, the appellant, engaged in the manufacture of Di Calcium Phosphate, contested the Revenue's classification of the goods under Chapter 28 of heading 28352500 of the Central Excise Tariff Act. The appellant argued that their product should be classified under Central Excise Tariff heading 23099090, a miscellaneous heading of preparation used in animal feeding.

Analysis:

The Tribunal noted that the actual nature of the product and the manufacturing process were not in dispute. The Revenue's classification was based on a note under Chapter 23, which stipulated that heading 2309 includes products used in animal feeding obtained by processing vegetable or animal materials. However, the Tribunal found that the Revenue's interpretation was not supported by the legal provision. The inclusive scope of heading 2309 allowed for items fitting the description to be classified under it, even if not explicitly mentioned in the note. The Di Calcium Phosphate manufactured by the appellant, used as a supplement in animal feed manufacture, fell under the preparation of a kind used in animal feeding as per heading 2309.

The Tribunal referenced relevant decisions such as Glaxo India Ltd. vs. C.C.E., Bamni Proteins Ltd. vs. C.C.E. & C, and CCE, Chandigarh vs. Punjab Bone Mills to support the appellant's classification argument. These decisions were deemed applicable to the present case, reinforcing the correct classification of the appellant's product under heading 2309.

After considering the factual and legal aspects, the Tribunal concluded that the impugned order was not sustainable. Therefore, the order dated 17.02.2017 of Commissioner (Appeals), Bhopal, was set aside, and the appeal of the appellant was allowed. The judgment was dictated and pronounced in open court, providing clarity on the correct classification of the goods under the Central Excise Tariff Act.