Tariff classification of animal feed supplements applied the larger bench test and excluded chemical heading treatment.

Proper tariff classification of Phosphoryl-A and Phosphoryl-B turned on their composition, use, trade understanding and technical material. The products were accepted as being used as animal feed supplements, and the reasoning of the Larger Bench was applied that animal feeding preparations containing vitamins, nutrients and diluents fall under Heading 23.02 rather than the chemical heading. On that basis, the goods were treated as animal feed supplements and not as dicalcium phosphate under Heading 28.35, so the classification under Heading 23.02 was sustained.

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Issues: Whether the products Phosphoryl-A and Phosphoryl-B were classifiable as animal feed supplement under Heading 23.02 of the Central Excise Tariff Act, 1985 or as dicalcium phosphate under Heading 28.35 of the Central Excise Tariff Act, 1985.

Analysis: The decisive question was the proper tariff classification of the products on the basis of their composition, use, trade understanding and technical material. The evidence accepted by the lower authority showed that the goods were used as animal feed supplement. The same classification issue had already been examined by the Larger Bench, which held that animal feeding preparations containing vitamins and nutrients with diluents were classifiable under Heading 23.02 and not under the chemical heading. The present goods were found to fall within that reasoning and could not be treated as chemicals or as dicalcium phosphate for classification under Chapter 28.

Conclusion: The goods were correctly classifiable as animal feed supplement under Heading 23.02 and not under Heading 28.35.

Final Conclusion: The Revenue's challenge to the classification failed and the assessee's classification was sustained.

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