Tariff classification of vitamin D3 by-product in soyabean oil confirmed under Heading 23.02, not as a vitamin concentrate.

Vitamin D3 resin in soyabean oil, obtained as a by-product in the manufacture of vitamin D3 and used as an animal feed supplement, was held classifiable under Heading 23.02 rather than Heading 29.36. The classification turned on the product's character as a manufactured by-product, the absence of evidence that it was merely pure vitamin D3 dissolved in oil, and the lack of any chemical test showing it to be a vitamin concentrate. The cited HSN notes on concentrates of natural vitamins were found inapplicable to an artificial by-product, and the product was treated consistently with earlier similar by-products already classified under Heading 23.02.

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Issues: Whether vitamin D3 resin in soyabean oil, obtained as a by-product in the manufacture of vitamin D3 and used as an animal feed supplement, was classifiable under Heading 23.02 or under Heading 29.36 of the Central Excise Tariff.

Analysis: The process of manufacture was not in dispute, and the goods emerged as a by-product in the course of producing vitamin D3. The record showed that the product was used as an animal feed supplement. The Revenue's case that it was merely pure vitamin D3 dissolved in soyabean oil was unsupported by evidence, including any chemical test establishing it as a vitamin concentrate. The Revenue also failed to distinguish the product from the assessee's earlier by-products that had already been classified under Heading 23.02. The cited HSN notes concerning concentrates of natural vitamins did not apply to an artificial by-product obtained in manufacture.

Conclusion: The goods were correctly classifiable under Heading 23.02 and not under Heading 29.36; the assessee's classification was upheld.

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