Broad construction of Animal Feed covers supplements and inputs used for animal nourishment, sustaining export duty liability.

The expression "Animal Feed" in Item 21 of the Second Schedule to the Customs Tariff Act, 1975 was held to cover not only the basic ration fed to animals but also feed supplements and constituent inputs used for nourishment, growth, production and efficient output. Applying that broad construction, de-oiled rice-bran and soya bean meal exported as animal-nutrition ingredients were classified as animal feed and made liable to export duty. The Tribunal treated later reference to animal feed supplements in the exemption framework as clarificatory and relied on prior High Court reasoning and technical material supporting an inclusive understanding of animal feed. The decision was against the assessee.

---

---

Issues: Whether de-oiled rice-bran and soya bean meal exported by the appellants were classifiable as Animal Feed under Item 21 of the Second Schedule to the Customs Tariff Act, 1975 and therefore liable to export duty.

Analysis: The goods were exported as ingredients/inputs used for animal nutrition, and the issue turned on the scope of the expression "Animal Feed". The Tribunal followed the reasoning of the Bombay High Court and the Gujarat High Court that the term is not confined to the basic ration fed to animals, but extends to feed supplements and additives used for better nourishment, growth, production, and efficient output. It also relied on its earlier view that technical literature supports a broad understanding of animal feed as comprising multiple constituent materials, and that the later inclusion of animal feed supplements in the exemption notification was clarificatory in nature. On that basis, de-oiled rice-bran and soya bean meal fell within the expression.

Conclusion: The goods were Animal Feed within Item 21 of the Second Schedule to the Customs Tariff Act, 1975 and were liable to export duty. The decision was against the assessee.

Ratio Decidendi: The expression "Animal Feed" is wide enough to include feed supplements and constituent inputs used for animal nourishment, not merely the complete basic ration.

---