1999 (5) TMI 288 - AT - Central Excise

Summary

Issues:
Classification of "Di-Calcium Phosphate" under the Central Excise Tariff Act - Heading 2302 (Animal Feed Supplement) or Heading 28.35 as Inorganic Chemicals.

Analysis:
The judgment revolves around the classification of "Di-Calcium Phosphate" under the Central Excise Tariff Act. The main issue is whether the product should be classified under Heading 2302 as an Animal Feed Supplement, as claimed by the appellants, or under Heading 28.35 as Inorganic Chemicals, based on a circular issued by the Board under Section 37B. The Orders-in-Appeal have classified the product under Heading 28.35 following the said circular.

The appellants argued that the Hon'ble Gujarat High Court had quashed a similar order by the Central Board of Excise & Customs, stating that the Board could not nullify decisions of the Tribunal through Section 37B orders. They cited previous cases like Punjab Bone Mills and Raymond Glues and Chemicals, where the Tribunal classified similar products under Heading 23.02. The Supreme Court also upheld the Tribunal's decision in the Raymond Glues and Chemicals case.

The Department, represented by the DRs, contended that the issue was settled by the Board's circular issued under Section 37B for uniform classification. They referred to the binding nature of such circulars as established by the Hon'ble Apex Court in the Rana De Micro Nutrients case. However, they acknowledged the consideration of similar issues by the Gujarat High Court and the Apex Court.

Upon careful consideration, the Tribunal found that the matter was no longer res integra due to previous decisions in cases like Punjab Bone Mills and Raymond Glues & Chemicals, which were upheld by the Supreme Court. Additionally, the Gujarat High Court had quashed the circular in question. Consequently, the Tribunal concluded that the product in question should be classified under Heading 23.02 of the Central Excise Tariff Act, 1985.

Therefore, the Tribunal set aside the Orders-in-Appeal and ruled in favor of the appellants, granting them consequential relief as per the law.