CESTAT AHMEDABAD remands case on Di Calcium Phosphate classification, emphasizes Notification 4/2016-C.E.

The Appellate Tribunal CESTAT AHMEDABAD remanded the case for fresh adjudication regarding the classification of Di Calcium Phosphate Animal Feed Grade. The Tribunal emphasized the importance of considering Notification No. 4/2016-C.E. (N.T.) which had a retrospective effect, directing the adjudicating authority to issue a new order within three months. The case outcome focused on the significance of the notification in determining the classification and the need for reassessment based on its applicability.

---

---

Issues: Classification of Di Calcium Phosphate Animal Feed Grade under Chapter 2309 or 2835, Applicability of Notification No. 4/2016-C.E. (N.T.)

In the judgment by the Appellate Tribunal CESTAT AHMEDABAD, the issue revolved around the classification of Di Calcium Phosphate Animal Feed Grade manufactured by the appellant using rock phosphate. The question was whether it should be classified under Chapter 2309 as claimed by the appellant or under Chapter 2835 as asserted by the Revenue under the Central Excise Tariff Act, 1985. The appellant argued that the product is Animal Feed Grade and falls under Chapter 2309. Additionally, they highlighted that even if it falls under Chapter 2835, it is exempt from Excise Duty under Notification No. 4/2016-C.E. (N.T.) for the relevant period. The appellant cited precedents where similar issues were resolved in favor of the assessee.

The Revenue, represented by the Superintendent (AR), maintained the findings of the impugned order that classified Di Calcium Phosphate under Chapter 2835 due to its manufacturing process from rock phosphate. Both lower authorities ruled against the appellant, leading to a duty demand confirmation. The Tribunal noted that the lower authorities did not consider the retrospective effect of Notification No. 4/2016-C.E. (N.T.) which covered the period in question. As the notification was crucial to the issue at hand, the Tribunal set aside the impugned order and remanded the case for fresh adjudication, emphasizing the importance of considering the notification. The adjudicating authority was directed to issue a new order within three months from the date of the Tribunal's decision.

In conclusion, the judgment highlighted the significance of Notification No. 4/2016-C.E. (N.T.) in determining the classification of Di Calcium Phosphate Animal Feed Grade and directed a reconsideration of the matter based on the retrospective applicability of the notification. The case was remanded for a fresh adjudication to be completed within a specified timeframe, considering the notification's impact on the classification issue.

---