Consistent tariff classification of di-calcium phosphate as animal feed supplement secured exemption under the correct heading.

Di-calcium phosphate, treated as an animal feed supplement in earlier decisions, was analysed for tariff classification under the Central Excise Tariff. The Tribunal stated that it could not fall under Chapter 31 and should be classified under Heading 23.02 and sub-heading 2302.00. On that classification, the conditions of Notification No. 442/86 dated 6-11-1986 were satisfied, so the exemption benefit was available. The document reflects the principle that an already settled classification must be applied consistently when determining exemption eligibility under the correct tariff entry.

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Issues: Whether di-calcium phosphate was classifiable under Heading 23.02 and sub-heading 2302.00 of the Central Excise Tariff or under sub-heading 3103.00, and whether it was entitled to exemption under Notification No. 442/86 dated 6-11-1986.

Analysis: The Tribunal noted that the classification of di-calcium phosphate as an animal feed supplement had already been settled in earlier decisions, and that the correct classification could not be under Chapter 31. On that basis, the product was to be treated as falling under Heading 23.02 and sub-heading 2302.00. Once so classified, the conditions of the exemption notification were satisfied.

Conclusion: The product was held to be classifiable under Heading 23.02 and sub-heading 2302.00 and entitled to the benefit of the exemption notification.

Final Conclusion: The Department's appeals were rejected and the assessee's appeal succeeded, with the exemption benefit maintained on the declared classification.

Ratio Decidendi: Where the classification of a product as an animal feed supplement has already been settled, the Department must apply that classification consistently and grant exemption if the product satisfies the notification conditions under the correct tariff heading.

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