Manufactured Di-calcium Phosphate Eligible for Exemption under Tax Notifications

The Tribunal ruled in favor of the appellants, affirming that di-calcium phosphate manufactured by them was entitled to the benefit of the exemption under Notification No. 55/75 as amended by Notification No. 221/79.

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Issues:
- Interpretation of Notification No. 55/75 as amended by Notification No. 221/79 regarding exemption for di-calcium phosphate.

Analysis:
1. The case involved the consideration of whether di-calcium phosphate manufactured and cleared by the appellants was entitled to the benefit of Notification No. 55/75 as amended by Notification No. 221/79, dated 30-6-1979.

2. The appellants, M/s. Kerala Chemicals and Proteins Ltd., were licensed to manufacture Ossein and Di-calcium Phosphate. The process of manufacture involved treating crushed animal bones with acid to produce Di-calcium Phosphate. The goods were initially classified under T.I. 68 and duty was paid accordingly.

3. Subsequently, a notification exempting "Crushed bones and bone products" was issued, leading the appellants to claim exemption for their products. Following examinations and revised classification lists, the appellants stopped paying duty and obtained refunds based on the exemption.

4. However, a show cause notice was later issued, challenging the eligibility of di-calcium phosphate for the exemption. The Assistant Collector confirmed duty demand for a specific period, which was upheld by the Collector (Appeals) based on previous orders.

5. The appellants contended that di-calcium phosphate should be considered a bone product and thus eligible for exemption under Notification No. 221/79. They cited a Tribunal's order in a similar case to support their argument.

6. The Respondent argued that a previous adjudication order had classified di-calcium phosphate under T.I. 68 without exemption, which was binding on the appellants.

7. The Tribunal considered the arguments and observed that the di-calcium phosphate was not used in fertilizer mixture, supporting the appellants' claim for exemption. They referenced previous Tribunal judgments confirming exemption for bone products and upheld the appellants' position, allowing the appeal with consequential relief.

In conclusion, the Tribunal ruled in favor of the appellants, affirming that di-calcium phosphate manufactured by them was entitled to the benefit of the exemption under Notification No. 55/75 as amended by Notification No. 221/79.

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