2008 (11) TMI 201 - AT - Central Excise

Tribunal Classifies Vitamin D3 in Soybean Oil as Animal Feed Supplement

The Tribunal ruled in favor of the appellant, classifying 'Vitamin D3 resin in soyabean oil' as an animal feed supplement under Tariff Heading 23.02 ... Classification - Vitamin D3 Resin in Soyabean Oil - The product is animal feed supplement and is manufactured by us as a by-product in the course of manufacture of our main product Vitamin D3 – Held that - the item in question was obtained as one of the by-products in the course of manufacture of vitamin 03. - this by-product is classifiable under Heading 23.02 like other two by-products, viz., Dilvit D3 200 and Dilvit D3 500. These two by-products were classified under Heading 23.02 in the appellant’s own earlier case. The Revenue has not been able to differentiate the subject goods from the other two by-product already classified under Heading 23.02. - On the whole, the case of the Revenue is not supported by any evidence. the subject goods is held to be classifiable under Heading 23.02 (SH 2302.00 of the CETA Schedule). Issues:Classification of 'Vitamin D3 resin in soyabean oil' as animal feed supplement under Tariff S.H. No. 2302.00 or as pure Vitamin D3 under S.H. No. 2936.00.Analysis:The issue in this case revolves around the classification of 'Vitamin D3 resin in soyabean oil' as an animal feed supplement under Tariff S.H. No. 2302.00 or as pure Vitamin D3 under S.H. No. 2936.00. The appellant argued that the item in question was a by-product in the manufacture of Vitamin D3 meant for animal feed supplement use. Two similar by-products, Dilvit D3 200 and Dilvit D3 500, were already classified under S.H. 2302.00 with nil rate of duty. The appellant relied on previous tribunal decisions and Supreme Court rulings supporting animal feed supplements' classification under Heading 23.02. On the other hand, the Revenue contended that 'Vitamin D3 resin in soyabean oil' should be treated as pure Vitamin D3 dissolved in soyabean oil, thus classified under Heading 29.36. The Revenue failed to provide evidence supporting their claim, while the appellant's position was backed by the manufacturing process and product usage as an animal feed supplement. The Tribunal found no merit in the Revenue's arguments and held the subject goods classifiable under Heading 23.02, similar to the other by-products, setting aside the impugned order and allowing the appeal.In conclusion, the Tribunal's decision centered on the proper classification of 'Vitamin D3 resin in soyabean oil' based on its manufacturing process, intended use as an animal feed supplement, and lack of evidence supporting the Revenue's claim of it being pure Vitamin D3. The appellant's position was supported by previous tribunal decisions and Supreme Court rulings, leading to the classification under Heading 23.02. The judgment highlights the importance of substantiating classification claims with concrete evidence and aligning them with established legal precedents to ensure accurate and fair classification of goods under the relevant tariff headings.