Animal feed classification turns on trade use and HSN scope, with vitamin-added supplements kept outside the competing vitamin heading.

Preparations used in animal feeding containing vitamins, provitamins, minerals, carbohydrates, proteins, carriers and similar additives were treated as falling within Heading 23.02 where trade usage, labels, expert material and HSN notes showed them to be animal feed supplements or premixes, and the broader wording of the heading was read as extending beyond materials obtained only by processing vegetable or animal matter. The materials were not classified under Heading 29.36 because the record did not establish that they were used primarily as vitamins. Niger seed extractions and rice bran extractions were likewise regarded as animal feed for tariff purposes, as technical and trade evidence showed they were used as feed ingredients and understood in commerce as feed materials.

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Issues: (i) Whether preparations used in animal feeding containing vitamins, provitamins, minerals, carbohydrates, proteins, carriers and similar additives were classifiable under Heading 23.02 or Heading 29.36 of the Central Excise Tariff Act, 1985. (ii) Whether niger seed extractions and rice bran extractions were classifiable as animal feed under Entry 21 of the Second Schedule to the Customs Tariff Act, 1975.

Issue (i): Whether preparations used in animal feeding containing vitamins, provitamins, minerals, carbohydrates, proteins, carriers and similar additives were classifiable under Heading 23.02 or Heading 29.36 of the Central Excise Tariff Act, 1985.

Analysis: Heading 23.02 corresponds to the HSN entry for preparations of a kind used in animal feeding, and the HSN explanatory notes describe complete feeds, supplementary feeds and premixes containing active substances such as vitamins, amino-acids, antibiotics and carriers. The inclusive wording in the Chapter note was held to enlarge the scope of the heading rather than confine it to materials obtained only by processing vegetable or animal matter. The evidence of trade usage, labels, expert opinions and technical literature showed that the products were known and used as animal feed supplements and premixes, and the Revenue did not establish that they were used primarily as vitamins for classification under Heading 29.36.

Conclusion: The preparations were classifiable under Heading 23.02 and not under Heading 29.36, in favour of the assessee.

Issue (ii): Whether niger seed extractions and rice bran extractions were classifiable as animal feed under Entry 21 of the Second Schedule to the Customs Tariff Act, 1975.

Analysis: The materials on record, including technical literature and trade evidence, showed that these extractions were used as ingredients in animal feed and were understood in commerce as feed materials. Applying the ordinary and trade meaning of animal feed, and relying on the supporting technical and judicial material, they were treated as falling within the animal feed entry for export tariff purposes.

Conclusion: The extractions were held to be animal feed and were classifiable under Entry 21, in favour of the assessee.

Final Conclusion: The reference was answered in favour of the assessees on the central classification controversy, while the matter was left to the respective Benches for disposal of any remaining issues.

Ratio Decidendi: For tariff classification, preparations known in trade and used as animal feed supplements or premixes, including mixtures containing vitamins and other nutritive additives, may fall under the animal-feeding heading where the heading and HSN notes show an expansive scope and the Revenue fails to establish primary classification under a competing vitamin heading.

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