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TMI BlogCentral Excise - Classification of Di-Calcium Phosphate of Animal Feed Grade - RegardingX X X X Extracts X X X X X X X X Extracts X X X X ..... 1985 (henceforth referred to as Tariff). It has been represented that in some Commissionerates the goods are classified under Heading 23.02 whereas in some other Commissionerate under Heading 28.35 of the Tariff. Lack of uniform classification of the goods have brought in disparity in the incidence of central excise duty on the said goods. 2. DCP is manufactured from animal bone and consumed by animal and poultry industries as calcium and phosphorous supplement. The ISI specification for DCP of animal feed grade, i.e., IS : 5470-1969 states that DCP is one of the important mineral ingredients used for compounding mineral mixtures for feeding livestock. The Chief Chemist, CRCL, New Delhi who was consulted in the matter has opined that DCP ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ); or (iii) for use in making complete or supplementary feeds. 4. As per Chapter Note i(a) to Chapter 28 the headings of this chapter apply to separate chemical elements and separate chemically defined compounds. As already mentioned, DCP is a separate chemically defined compound i.e. calcium hydrogenorthophosphate and covered under sub-heading No. 2835.00 of the Tariff as "Phosphates". Heading 28.35 of the Tariff is aligned with Heading 28.35 of HSN. In the Note (C)(4)(1) below Heading 28.35 of the HSN, DCP used as a mineral supplement to animal fodder has been specifically mentioned and covered under sub-heading 2835.25 of the HSN. 5. As per Chapter Note 1(b) to Chapter 31 of the Tariff this chapter does not cover separate chemicall ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nimal feed grade being separate chemically defined compound is appropriately classifiable under sub-heading 2835.00 of the Tariff in view of Chapter Note 1(a) to Chapter 28 of the Tariff and HSN Note (C)(4)(a) below Heading 28.35. (d) The exclusion note below Heading 28.35 of HSN excludes natural calcium phosphate, apatite and natural aluminium calcium phosphate of Heading 25.10 from Heading 28.35. However, this exclusion is not relevant as DCP in question is not naturally occurring. (e) The DCP in question is obtained from animal bone whereas HSN Note (C)(4)(a) below Heading 28.35 mentions that DCP is obtained by the action of an acidulated calcium chloride solution on disodium hydrogenorthophosphate. The method given in the HSN Note m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ium phosphate animal feed grade conforming to the specifications of IS : 5470-1969 and being a separate chemically defined compound and not a preparation would more appropriately, in his opinion, be classified under Heading 28.35 of CETA. 8. The Circular F. No. 114/18/86-CX. 3, dated 24-3-1986 clarifying that in the light of Chapter Note 1 to Chapter 31, correct classification of DCP used as animal feed would be under sub-heading 3103.00 and the judgments of CEGAT in the case of M/s. Punjab Bone Mills and M/s. Proteinkem holding that the product DCP of animal feed grade is correctly classifiable under sub-heading 2302.00 and not under 3103.00 of the Tariff are not applicable for the following reasons : (i) During the 1987 Budget Chapter ..... X X X X Extracts X X X X X X X X Extracts X X X X
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