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TMI Blog2003 (1) TMI 575X X X X Extracts X X X X X X X X Extracts X X X X ..... heading 2302.00 declaring it as preparation of a kind used in animal feeding attracting nil rate of duty whereas the department is of the view that it is another product, classifiable under Heading 2941.90 attracting Central Excise duty. It is also disputed by the appellants that the product in question is a excisable goods. The third dispute is regarding valuation of this product. The appellant had since started clearing the product on payment of duty falling under Chapter 29. Valuation dispute arose as the appellant had paid duty only of 50% of the assessable value declared in the cost data submitted to the department in respect of the product in question. They had reduced the assessable value by 50% on the plea that the potency level o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inomycin is neither residue and waste of the Food Industries nor a preparation of a kind used in animal feeding as it is organic chemical (Polymer Antibiotic Anticoccidial Agent) derived from fermented broth and is mixed with other ingredients to produce animal feed. As such salinomycin is not covered under sub-heading 2302 as the party has declared it as organic chemical (Antibiotic Agent) and it appears to be classifiable under sub-heading 2941.90 of Central Excise Tariff 1985 covering Antibiotics. 2. He referred to the decision of the Ranbaxy Laboratories Ltd. v. Collector of Central Excise, New Delhi - 1994 (72) E.L.T. 197 (Tribunal) which is related to the classification of Pentaforte and Famitone - Synthetic Preparations containin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Collector of Central Excise, Bangalore v. Tetragon Chemie P. Ltd reported in 2001 (132) E.L.T. 525 (S.C.) wherein the order of the Supreme Court has, inter alia, held in animal feed supplements, consisting of one or more vitamins mixed together with dilutants and used in small quantity by addition to the main feed to get desired performance of live stocks or to enhance their performance beyond the normal levels, classifiable as animal feed under Heading 23.02 of Excise Tariff Act, 1985 and not as vitamins under Heading 29.36. He also drew our attention towards chemical examination report available on page 43 which says the sample is in the form of dull white small lumps, composed of complex organic compound and also confronted us with th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he appellant would be around Rs. 1.90 crores and as against that the applicants have already paid more than 50% of the amount. Therefore, the applicants have good prima facie case in their favour for waiver of the entire duty and penalty. 3. Shri M.K. Gupta, learned Jt. C.D.R appearing on behalf of the Revenue submitted that the product in question is not Salinomycin 350 mycelia rather Mycelia K and is classifiable under Chapter 29.41. He also submitted that the case was filed in 1993. He drew our attention to classification list on pages 34 and 35 and submitted that the applicants themselves had classified the product in question falling under Heading 2302.00 and the case is not appearing therein. He also submitted that the applicants in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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