Animal feed supplement classification: preparations used in feeding were held classifiable under Heading 23.02, not vitamin heading 29.36.

Preparations known in trade and used as animal feed supplements, containing vitamins with minerals, carbohydrates and proteins, were held classifiable under Heading 23.02 because that heading, read with the HSN notes, covers supplementary feeds and premixes used in animal feeding; Heading 29.36 was inapplicable since the goods were not merely vitamin intermixtures. Rice bran extractions and niger seed extractions were also treated as animal feed on the evidence of trade understanding and technical material, and fell under Entry 21 of the Second Schedule to the Customs Tariff Act, 1975.

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Issues: (i) Whether preparations used as animal feed supplements, containing vitamins and other ingredients such as minerals, carbohydrates and proteins, are classifiable under Heading 23.02 of the Central Excise Tariff Act, 1985 or under Heading 29.36; (ii) whether rice bran extractions and niger seed extractions are animal feed for the purpose of export tariff classification.

Issue (i): Whether preparations used as animal feed supplements, containing vitamins and other ingredients such as minerals, carbohydrates and proteins, are classifiable under Heading 23.02 of the Central Excise Tariff Act, 1985 or under Heading 29.36.

Analysis: Heading 23.02 corresponds to HSN Heading 23.09, whose explanatory notes cover complete feeds, supplementary feeds and premixes used in animal feeding. The surrounding materials, including technical literature, trade understanding, expert certificates and user affidavits, showed that the products were known and used as animal feed supplements. The note to Chapter 23 was read as enlarging the scope of the heading, and the expression used in the heading was not confined to products obtained only by processing vegetable or animal materials. The competing Chapter 29 entry was held inapplicable because the goods were not merely intermixtures of vitamins used primarily as vitamins, but preparations used in animal feeding with other nutritive ingredients.

Conclusion: The preparations are classifiable under Heading 23.02 and not under Heading 29.36, in favour of the assessee.

Issue (ii): Whether rice bran extractions and niger seed extractions are animal feed for the purpose of export tariff classification.

Analysis: The goods were found, on trade understanding and supporting technical material, to be used as animal feed ingredients and to answer the description of animal feed for the relevant export entry. The contrary position was not established by the Revenue on the material before the Tribunal.

Conclusion: The goods are animal feed and fall under Entry 21 of the Second Schedule to the Customs Tariff Act, 1975, in favour of the assessee.

Final Conclusion: The reference was answered for the assessees on the central excise classification issue, and the connected export classification issue was also decided in their favour, leaving any other surviving matters to be dealt with by the respective Benches.

Ratio Decidendi: For tariff classification, a preparation known and used in trade as an animal feed supplement is classifiable as a preparation of a kind used in animal feeding where the relevant heading is broad enough to cover premixes and supplementary feeds, and the HSN explanatory notes support that construction.

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