1999 (2) TMI 141 - AT - Central Excise

Tribunal rules in favor of Punjab Bone Mills on di-calcium phosphate classification

The Tribunal ruled in favor of the appellant, M/s. Punjab Bone Mills, in the dispute with the Revenue regarding the classification of di-calcium phosphate ... Classification Issues:Classification of di-calcium phosphate (animal feed grade) and availability of Notification No. 442/86.Analysis:The appeals involved two parties - M/s. Punjab Bone Mills and the Revenue, both concerning the classification of di-calcium phosphate (animal feed grade) and the application of Notification No. 442/86. The appellant contended that their product should be classified under Heading 2302 of the Central Excise Tariff Act, while the department argued for classification under Heading 3103. The Collector (Appeals) initially denied the benefit of the notification due to non-conformance with IS specification No. 5470-1969. However, the appellant argued that di-calcium phosphate should be classified under Heading 2302, citing previous Tribunal decisions and Supreme Court rulings supporting their position.The Departmental Representative (D.R.) argued that the show cause notice was solely about denying the benefit of Notification 442/86 and not about the classification issue. The D.R. maintained that since the product did not meet IS specifications, the notification's benefit was rightly withheld. The Tribunal carefully considered both sides' arguments and noted that the appellant had originally classified the product under Heading 2302, later filing a classification list under Heading 3103 under protest. The Tribunal found that the Collector (Appeals) had not provided clear reasons for rejecting the appellant's classification under Heading 2302, especially considering previous Tribunal and Supreme Court decisions favoring this classification. Ultimately, the Tribunal ruled in favor of the appellant, holding that di-calcium phosphate (animal feed grade) should be classified under Heading 2302 of the Central Excise Tariff Act. The appellant's appeal was allowed, while the department's appeal was rejected.In conclusion, the judgment resolved the issue of classification of di-calcium phosphate (animal feed grade) under the Central Excise Tariff Act and the application of Notification No. 442/86. The Tribunal upheld the appellant's classification under Heading 2302, emphasizing previous legal precedents supporting this classification and dismissing the department's arguments based on IS specification non-conformance. The decision provided clarity on the classification issue and confirmed the entitlement to the notification's benefits based on the correct classification.