Tribunal classifies Coxidot & Coxigard as animal feed supplements, not medicaments

The Tribunal upheld the classification of products Coxidot powder and Coxigard powder under Heading 23.02 of the Central Excise Tariff Act as animal feed supplements, rejecting the Revenue's argument to classify them as medicaments under Heading 3003.10. The decision was based on the Explanatory Notes of the Harmonized System of Nomenclature (HSN), a circular by the Central Board of Excise and Customs, and a precedent set by the Larger Bench of the Appellate Tribunal, establishing that products used in addition to animal feed for specific results are classified under Heading 23.02.

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Issues: Classification of products Coxidot powder and Coxigard powder under Heading 23.02 as Animal Feed Supplement or under sub-heading 3003.10 as medicament.

In this case, the primary issue revolves around the classification of two products, Coxidot powder and Coxigard powder, under the Central Excise Tariff Act. The Revenue argues that these products should be classified as medicaments under Heading 3003.10 due to their medicinal function in preventing coccidiosis in poultry. The Revenue contends that the active substances in the products, such as DOT and Clopidol, are present in medicinal amounts in the finished feed, justifying their classification as medicaments. The Revenue relies on the Extra Pharmacopoeia and the purpose of preventing coccidiosis to support their argument.

On the other hand, the Respondent relies on a circular issued by the Central Board of Excise and Customs, Circular No. 188/22/96-CX, which states that preparations containing active substances like vitamins, amino-acids, and coccidiostats fall under Heading 23.02 if used in animal feeding. The Respondent argues that the impugned products are used as animal feed supplements and are not medicaments. The Respondent also cites the Explanatory Notes of the Harmonized System of Nomenclature (HSN) to support their classification argument, emphasizing that the impugned products fall under the category of feed supplements based on their composition and purpose.

After considering the submissions from both sides, the Tribunal notes that the Commissioner (Appeals) had classified the products under Heading 23.02 of the Central Excise Tariff Act, in line with the Explanatory Notes of the HSN. The Tribunal acknowledges the circular issued by the Central Board of Excise and Customs, which clarifies the classification of products containing coccidiostats under Heading 23.02 for animal feeding purposes. The Tribunal rejects the Revenue's argument that the products are not feed supplements due to the meagre quantity of active substances, emphasizing that coccidiostats are recognized in the Explanatory Notes as falling under Heading 23.02 for animal feed preparations.

Furthermore, the Tribunal refers to a previous decision by the Larger Bench of the Appellate Tribunal in Tetragon Chemie (P) Ltd. & Others v. C.C.E., Bangalore, which established that preparations given in addition to the animal's ration for specific results are classified under Heading 23.02. Based on the Board's circular, the precedent set by the Larger Bench, and the nature of the impugned products as feed supplements for specific animal health purposes, the Tribunal concludes that the products Coxidot powder and Coxigard powder are correctly classifiable under Heading 23.02 of the Central Excise Tariff Act, rejecting the Revenue's appeal.

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