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of <h1>Tribunal Confirms Vitamin-E Adsorbate Classified as Animal Feed Additive, Emphasizes End-Use in Tariff Classification.</h1> <h3>COMMISSIONER OF CUSTOMS, CHENNAI Versus LALCHAND BHIMRAJ</h3> COMMISSIONER OF CUSTOMS, CHENNAI Versus LALCHAND BHIMRAJ - 2007 (220) E.L.T. 189 (Tri. - Chennai) Issues: Classification of imported goods under Customs Tariff Heading (CTH) 29.36 and 23.09Classification under CTH 29.36:The case involved the classification of imported goods declared as 'Vitamin-E 50% Adsorbate' under CTH 29.36 by the Customs authorities, attracting a basic Customs duty of 35% and Countervailing Duty (CVD) at 16%. The Chemical Examiner's report indicated that the goods contained Vitamin-E and silica, with silica acting as a filler. The Customs authorities believed that the goods fell under CTH 29.36. The importer contested this classification, arguing that the goods were a preparation for animal feed under CTH 23.09 and not a well-defined chemical under Chapter 29. The adjudicating authority upheld the classification under CTH 29.36, relying on various sources like Hawley's Condensed Chemical Dictionary and HSN Explanatory Notes.Appeal and Classification under CTH 23.09:The appellate Commissioner of Customs (Appeals) set aside the lower authority's decision and classified the goods under CTH 23.09 and SH 2309.90, considering the end-use of the goods as additives in animal feeds. The Department appealed this decision, leading to the present case before the Appellate Tribunal CESTAT, Chennai.Analysis and Decision:After examining the records, the Tribunal focused on the key issue of classifying the imported goods. The Tribunal noted that the goods, containing Vitamin-E and silica as a carrier, were specifically intended for animal feed use and not for human consumption. The Tribunal considered arguments from both sides, with the SDR relying on Chapter Note 1(f) in Chapter 29 and HSN Explanatory Notes to support the classification under CTH 29.36. The Consultant, however, pointed out the end-use of the goods as confirmed by the Chemical Examiner's report, emphasizing that the goods were used as animal feed additives.Legal Precedents and Decision:The Tribunal reviewed legal precedents, including the Supreme Court's decision setting aside a previous Tribunal ruling and classifying similar preparations under Heading 23.02 instead of 29.36. The Tribunal also referenced a Larger Bench decision classifying animal feed supplements under Heading 23.02. Ultimately, the Tribunal upheld the appellate Commissioner's classification under CTH 23.09 and SH 2309.90, in line with the intended use of the goods as animal feed additives. The Tribunal dismissed the Revenue's appeal, aligning with the decisions in previous relevant cases.Conclusion:The Tribunal's detailed analysis and consideration of legal precedents led to the dismissal of the Revenue's appeal, affirming the classification of the imported goods under CTH 23.09 and SH 2309.90 as animal feed additives. The decision highlighted the importance of considering the end-use and intended purpose of goods in determining their classification under the Customs Tariff.
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