1999 (3) TMI 393 - AT - Central Excise

Summary

Issues:
Classification of products 'Phosphoryl-A' and 'Phosphoryl-B' - whether they are Di-Calcium Phosphate (DCP) or animal feed supplement under Central Excise Tariff Act, 1985.

Analysis:

1. Classification of Products: The case involved a dispute regarding the classification of products 'Phosphoryl-A' and 'Phosphoryl-B' as either Di-Calcium Phosphate (DCP) under Chapter Heading No. 2835 or animal feed supplement under heading 23.02 of the Central Excise Tariff Act, 1985. The assessees had been converting inorganic parts into DCP and claiming exemption for DCP used in animal feed supplements. However, the department contended that the DCP was used in animal feed, not as a supplement, making them ineligible for exemption.

2. Judicial Precedent: The Tribunal referred to a judgment by a Larger Bench in the case of Tetragon Chemie (P) Ltd. & Others v. CCE, Bangalore & Others, which concluded that animal feeding preparations, including vitamins and nutrients mixed with diluents, should be classified as animal feed under Heading 2302 of the Central Excise Tariff Act, 1985. The Tribunal emphasized that the evidence presented by the assessee, accepted by the Commissioner, demonstrated that the items in question were indeed animal feed supplements, not chemicals for other purposes, such as DCP under Chapter 28.35.

3. Decision: After thorough analysis of the material evidence, trade usage, and previous judgments, the Tribunal upheld the classification of 'Phosphoryl-A' and 'Phosphoryl-B' as animal feed supplements under heading 23.02. The Tribunal found that the judgment of the Larger Bench was applicable to the present case, as all relevant aspects had been discussed in the previous ruling. Consequently, the Tribunal rejected the stay application and dismissed the appeal, affirming the classification of the products as animal feed supplements and denying the exemption claimed by the appellants.

Overall, the Tribunal's decision was based on the interpretation of trade usage, technical literature, and previous judicial precedents, ultimately concluding that the products in question should be classified as animal feed supplements under the Central Excise Tariff Act, 1985.