Animal feed supplement classification upheld over veterinary medicament claim; duty demand and penalty were set aside.

Products intended for animals were classified as animal feed supplements under Chapter Heading 23.02.00, because the record supported that description over veterinary medicaments under Chapter Heading 30.03. The Department's own laboratory treated two products as feed supplements, expert evidence for the assessee described the remaining product as a tonic or food supplement rather than a therapeutic medicament, and the labels stated that the product was not for medicinal use. On that evidence, the Tribunal's classification was upheld, and the duty demand and penalty were not sustained.

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Issues: Whether the products in question were classifiable as animal feed supplements under Chapter Heading 23.02.00 or as veterinary medicaments under Chapter Heading 30.03, and whether the duty demand and penalty were sustainable.

Analysis: The products were meant for animals, but the record showed substantial material supporting classification as animal feed supplements. The Department's own laboratory opined that two of the products could be treated as animal feed supplements and not as veterinary medicaments. For the remaining product, the laboratory gave no definite view, while expert evidence produced by the assessee indicated that it was only a tonic or food supplement and not a therapeutic medicament. The printed labels also stated that the product was not for medicinal use. On the overall evidence, the classification adopted by the Tribunal was found to be justified.

Conclusion: The products were held to be animal feed supplements and not veterinary medicaments, and the demand and penalty were not sustained. The appeal was dismissed in favour of the assessee.

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