2004 (7) TMI 139 - AT - Central Excise

Summary

Issues:
Classification of product under CET sub-heading, Valuation of goods for duty payment

Classification Issue:
The appeal was based on the classification of the product "Salinomycin 350 Mycelia" under CET sub-heading 2941.90 as an antibiotic, as opposed to the claim of the assessee for classification as animal feed pre-mix under CET sub-heading 2302.00. The tribunal examined the manufacturing process, chemical composition, and intended use of the product. The tribunal noted that the product was described as a polyether antibiotic with coccidiostat properties, produced from a fermentation process. The tribunal compared the product with other antibiotics manufactured by the appellants and found that the product in dispute was not identical to previously decided cases involving antibiotic products. The tribunal concluded that the product fell under CET sub-heading 2941.90 as an antibiotic based on the evidence presented.

Valuation Issue:
The second issue involved the valuation of goods for duty payment. The appellants claimed a reduction in the assessable value by 50% due to variations in the potency level of the active mass of the product. The tribunal analyzed the cost data submitted by the appellants, which showed the cost per kilogram of the product during a specific period. The tribunal found that the assessable value was determined based on total expenditure incurred on specific batches and not on the active mass alone. The tribunal rejected the appellants' claim for reduction in value, as there was no evidence to support the practice of doubling the quantity of the product at the time of clearance. The tribunal upheld the impugned order and rejected the appeal based on the correct application of the declared value for determining the assessable value of the goods.

In conclusion, the appellate tribunal classified the product "Salinomycin 350 Mycelia" as an antibiotic under CET sub-heading 2941.90 and upheld the valuation of goods for duty payment based on the declared value submitted by the appellants.