9911796707
TMI Blog2015 (9) TMI 1206X X X X Extracts X X X X X X X X Extracts X X X X ..... he present case the goods are not a preparation for animal feed. The goods are Niacin itself. It is not used as animal feed directly. As held in the case of Sonam International (supra) a vitamin is added in a miniscule proportion in animal feed. That the appellant mixed Niacin with Atta before clearance makes no difference because we are concerned with the classification of the product manufactured by them i.e. Niacin. Therefore we hold that the product Niacin Feed Grade has been correctly classified under Tariff Item 29362920 and duty is payable accordingly. Extended period of limitation - Held that:- The appellant had clearly declared the description of the product as "Niacin Feed Grade" in all their E.R. 1s. Therefore there being no m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assified the Niacin Feed Grade under Tariff Item 29362920 and confirmed the duty demand of ₹ 65,43,700/- invoking the extended time period. He also imposed equivalent penalty under Section 11AC of the Act. The goods valued at ₹ 6,54,57,800/- cleared without payment of duty were subjected to fine of ₹ 33,00,000/- in lieu of confiscation under Section 34 of the Act. 3. Heard both sides. 4. The contentions of the appellant are - (i) The product in question does not satisfy specification of Indian Pharmacopaeia and, therefore, rightly classifiable under Chapter 23 reads as Preparation of a kind used in animal feeding and the tariff rate of duty is nil. It was contended that the goods will fall under Heading 23.09 ev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ucts of a kind used in animal feeding, obtained by processing vegetable or animal materials to such an extent that they have lost the essential characteristics of the original material. Whereas the product in dispute is obtained by a chemical process. He further stated that description of CH 2309 itself refers to animal feed preparations. Even as per the HSN Notes of Chapter 23, Vitamins are specifically exclude from Chapter 23. He relied upon the case law in Commissioner of Customs Vs. Sonam International 2012 (275) ELT 326. In view of above, he stated that the product is clearly covered under Tariff Item 29362920 which specifically covers Niacin (Nicotinic acid). 6. We have carefully considered the submissions made by both sides. The t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roduct is obtained from chemicals i.e. Beta Picoline, Sulphuric Acid, Nitric Acid. Therefore Heading 2309 which covers products of a kind used in animal feeding, can by no means include Niacin. 6.2 We also find that Tariff Item 29362920 specifically covers Nicotinic acid (nicotinamide). Following cannons of interpretation of the Central Excise Tariff, a more specific heading is to be preferred in terms of Rule 3(a) of the Rules for Interpretation of the Tariff Act. Even according to the HSN Notes of Chapter 23 (our tariff being based on HSN System of Nomenclature) under heading 23.09 it is specifically mention in exclusion clause (e) that vitamins are excluded from heading 23.09. We may also mention that the case law cited by the Ld. AR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was issued on 23.8.2011 for the period December 2008 to May 2011 by invoking the extended time period under proviso to Section 11 A (1). We see no justification to invoke the extended time period. The case is a matter of interpretation. We have seen the ER.1 returns for the said period. The appellant had clearly declared the description of the product as Niacin Feed Grade in all their E.R. 1s. Therefore there being no misstatement, duty is payable only for the normal period of time limitation. For the same reason that extended time period is not applicable, confiscation, fine and penalty are also not sustainable. However, interest would be payable under Section 11AB corresponding to the amount of duty upheld. 8. Appeal is dismissed an ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
