Animal feed classification prevails where product literature and departmental clarification support feed use and no chemical test is produced.

Product literature, departmental clarification and long-standing assessment practice supported classification of Betaine Hydrochloride 98% Feed Grade as an animal feed additive under CETH 2309 90 90. The Tribunal noted that the goods were marketed for animal nutrition, particularly poultry feed, were not intended for human, food or pharmaceutical use, and the Department had not carried out any supporting chemical test. On that factual basis, it accepted the Commissioner (Appeals)'s findings and concluded that the Revenue had not established grounds to disturb the existing classification under Chapter 23, rejecting the competing headings for chemical or medicinal products.

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Issues: Whether Betaine Hydrochloride 98% Feed Grade was correctly classifiable under CETH 2309 90 90 as an animal feed additive, or under CETH 29239000/2936 as contended by the Revenue.

Analysis: The Tribunal noted the departmental instruction clarifying that Betaine HCL 93-98% falls under animal feed grade and considered the long-standing assessment practice, the manufacturer's literature, and the absence of any chemical test by the Department. The product literature showed that the goods were registered and marketed for animal nutrition, as poultry feed additive, and were not intended for human consumption or medicinal use. On that basis, the Tribunal accepted the Commissioner (Appeals)'s factual findings that the goods were unsuitable for general, food, or pharma use, and held that the Revenue had not established a basis to disturb the classification already accepted in the impugned orders.

Conclusion: Betaine Hydrochloride 98% Feed Grade was held classifiable under CETH 2309 90 90 and not under CETH 29239000/2936, in favour of the assessee.

Final Conclusion: The Revenue's challenge to the classification failed, and the assessee's classification claim was accepted with consequential relief according to law.

Ratio Decidendi: Where the product literature and departmental clarification support use of the goods as animal feed additive, and the Department does not conduct supporting chemical testing, classification as animal feed under Chapter 23 prevails over competing headings for chemical or medicinal products.

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