2020 (10) TMI 318 - AT - Central Excise

Classification of goods - Di Calcium Phosphate Animal Feed Grade manufactured by the appellant by using rock phosphate - classified under Chapter 2309 as declared by the appellant or under chapter 2835 has claimed by the Revenue of the Central Excise Tariff Act, 1985? - HELD THAT - Whether the Di Calcium Phosphate Animal Feed Grade is classifiable under chapter heading 2309 or under 2835, it is prima facie covered under exemption Notification No. 04/2016-C.E. (N.T.) issued under section 11C of the Central Excise Act, 1944. The applicability of this notification 04/2016-C.E. (N.T.) is vital, to decide the issue in hand, however, both the lower authorities have passed the order before issuance of the Notification No. 04/2016-C.E.(N.T.). Therefore, they did not have occasion to deal with this notification which has retrospective effect and it covers the period involved in the present case. The matter needs to reconsidered in the light of notification No. 04/2016-C.E. (N.T.) - Appeal allowed by way of remand.

Summary

Issues: Classification of Di Calcium Phosphate Animal Feed Grade under Chapter 2309 or 2835, Applicability of Notification No. 4/2016-C.E. (N.T.)

In the judgment by the Appellate Tribunal CESTAT AHMEDABAD, the issue revolved around the classification of Di Calcium Phosphate Animal Feed Grade manufactured by the appellant using rock phosphate. The question was whether it should be classified under Chapter 2309 as claimed by the appellant or under Chapter 2835 as asserted by the Revenue under the Central Excise Tariff Act, 1985. The appellant argued that the product is Animal Feed Grade and falls under Chapter 2309. Additionally, they highlighted that even if it falls under Chapter 2835, it is exempt from Excise Duty under Notification No. 4/2016-C.E. (N.T.) for the relevant period. The appellant cited precedents where similar issues were resolved in favor of the assessee.

The Revenue, represented by the Superintendent (AR), maintained the findings of the impugned order that classified Di Calcium Phosphate under Chapter 2835 due to its manufacturing process from rock phosphate. Both lower authorities ruled against the appellant, leading to a duty demand confirmation. The Tribunal noted that the lower authorities did not consider the retrospective effect of Notification No. 4/2016-C.E. (N.T.) which covered the period in question. As the notification was crucial to the issue at hand, the Tribunal set aside the impugned order and remanded the case for fresh adjudication, emphasizing the importance of considering the notification. The adjudicating authority was directed to issue a new order within three months from the date of the Tribunal's decision.

In conclusion, the judgment highlighted the significance of Notification No. 4/2016-C.E. (N.T.) in determining the classification of Di Calcium Phosphate Animal Feed Grade and directed a reconsideration of the matter based on the retrospective applicability of the notification. The case was remanded for a fresh adjudication to be completed within a specified timeframe, considering the notification's impact on the classification issue.