Exemption for bone products extended to di-calcium phosphate where classification and prior tribunal precedent supported relief.

Di-calcium phosphate was treated as falling within the exemption for "crushed bones and bone products" under the amended notification, because its classification as a bone product was accepted and the department did not dispute that it was not used in fertiliser mixture. The Tribunal also relied on an earlier decision granting the same notification benefit to di-calcium phosphate in comparable circumstances and found no reason to depart from that view. On that basis, exemption was available and the denial of exemption could not stand.

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Issues: Whether di-calcium phosphate manufactured and cleared by the appellants was entitled to exemption under Notification No. 55/75 as amended by Notification No. 221/79 dated 30-6-1979 on the footing that it was a bone product.

Analysis: The dispute turned on the nature of the product and whether it answered the description of "crushed bones and bone products" introduced into the exemption notification. The Tribunal noted that the department did not dispute that the product was not used in fertiliser mixture and found support in an earlier Tribunal decision granting the same notification benefit to di-calcium phosphate in comparable circumstances. The earlier view had also been relied upon in subsequent connected matters and there was no reason to depart from it.

Conclusion: Di-calcium phosphate manufactured by the appellants was held entitled to exemption under the amended notification, and the issue was answered in favour of the assessee.

Final Conclusion: The demand and denial of exemption could not stand, and the appeal succeeded with consequential relief.

Ratio Decidendi: Where the product manufactured is found to fall within the exempted category of bone products and the earlier binding tribunal view supports that classification, exemption under the relevant notification must be granted.

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