TaxTMI 
TaxTMI 
2005 (2) TMI 848
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....ty. The show cause notices added that these products are intermixture of vitamins and, therefore, correctly classifiable under C.S.H. No. 2936.00 and as such chargeable to duty at the rate of 15% advance (BED) + 5% BED (SED). 3. The Assistant Commissioner in his order dated 24-1-1991 held that the products Dailymix and Briplex were correctly classifiable under Chapter Sub-heading 2302.00. He, however, confirmed the demand of Rs. 2,04,129.18. In respect of 'RECOVIT' with which we are concerned in this appeal, he held that it is classifiable under Chapter Sub-heading 2936.00 as animal feed supplement. The conclusion of the Assistant Commissioner was arrived at on the basis of Dy. Chief Chemist's report which stated that Recovit may be considered as an organic chemical (intermixture of vitamins) marked as Annexure-P2. The assessee filed an appeal before the Commissioner (Appeals) who, by his order dated 27-7-1993, set aside the order of the Assistant Commissioner and held that Recovit was correctly classifiable under Chapter Sub-heading 2302.00 as animal feed. The revenue filed an appeal against the order of the Commissioner (Appeals) which has been decided by the CEGAT vide i....
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....ues and waste from the food industries, including bagasse, other waste of sugar manufacture and oil cakes 12% 23.02 2302.00 Preparations of a kind used in animal feeding, including dog and cat food Nil   XI  PROVITAMINS, VITAMINS AND HORMONES 29.36 2936.00 Provitamins and vitamins, natural or reproduced by synthesis (including natural concentrates), derivatives thereof used primarily as vitamins, and intermixtures of the foregoing, whether or not in any solvent" 15% 7. The assessee has declared these three products in that classification list which had been approved by the Assistant Collector. They are :- (a) Dailymix :- ...... (b) Recovit :- It is a mixture of vitamins but it contains stabilisers and anti-oxidants also, in addition to solvents. (c) Briplex :- ...... 8. According to the assessee, the classification list for these products has already been approved by the Assistant Collector and, therefore, the Assistant Collector is not competent to change his own decision. The assessee had claimed the classification of these products under C....
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.... reads as follows :- "OFFICE OF THE COLLECTOR OF CENTRAL EXCISE & CUSTOMS, PUNE PMC'S COMMERCIAL BUILDING, HIRABAUG, TILAK ROAD, PUNE - 2. ********** PUNE CENTRAL EXCISE & CUSTOMS, COLLECTORATE TRADE NOTICE NO. 34/1990 (1/Ch. 23/90) Sub :- Central Excise Classification of intermixtures of Vitamins used as animal feed supplements whether classifiable under Heading 23.02 or in Chapter 30 or Chapter 29 - Regarding. A doubt has been raised regarding the correct classification of products which consists of only different vitamins in definite proportions and no other ingredients except the solvents or stabilisers or anti-oxidants. Such products are generally used as animal feed supplements. The doubt raised is whether the such products which are mixtures of vitamins are classifiable under heading 23.02 or as medicaments under heading 30.03 or an intermixture of vitamins under heading 29.36. The matter has been examined and it is observed that such animal feed supplements which are just intermixture of vitamins only and that there are no other ingredients except solvents, stabilisers or anti-oxidants are specifically covered under heading....
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....however represented that animal feed supplements use vitamins, pro-vitamins, amino-acids, anti-biotics, 'Coccidiostats' etc. in very small quantities (micro-quantities) and that the feed supplements contain other organic and inorganic feed ingredients as well. They have also represented that such micro-nutrients do not have any independent identity as pure chemicals, that they cannot be easily separated into individual pure chemicals: nor do they conform to standard laid down for medicaments. As such, it is claimed that animal feed supplements cannot be classified under Chapter 29 or Chapter 30 of the Central Excise Tariff merely because they contain the said micro-nutrients. 4. The matter has been further examined by the Board in consultation with the Chief Chemist, Central Revenue Chemical Laboratory (CRCL), New Delhi. 5. Heading 23.02 of Central Excise Tariff i.e. "preparations of a kind used in animal feeding including dog and cat food" corresponds to Heading 23.09 "Preparations of a kind used in animal feeding" of the HSN. As per Explanatory notes under Heading 23.09 of the HSN, the said heading covers complete animal feeds, supplementary animal feeds and prepa....
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.... the Customs Tariff Act, 1975. Policy Circular No. 44 runs as follows :- "POLICY CIRCULAR No. 44(RE-99)/1997-2002 Dated 25th November, 1999 Attention is invited to Policy Circular No. 22(RE-99)/1997-2002 dated 27-7-99, regarding classification of animal feed supplements. In this regard it is further clarified that 'Pre-mixes' containing vitamins or pro-vitamins, aminoacids, coccidiostats etc. for use exclusively in animal feed as supplements continue to be classified under the Heading 23.09, as per Explanatory Notes to Harmonized Commodity Description and coding system. This issues with the approval of DGFT. Sd/- (O.P. Hisaria) Deputy Director General of Foreign Trade F.No. 01/89/180/00072/AM99/PC I-A Dated 25th November, 1999 Issued by: Ministry of Commerce Directorate General of Foreign Trade New Delhi." 13. It may also be relevant to point out that on 27-9-1990, the Central Excise Department has drawn a sample of the product Recovit and the same was sent for chemical analysis to the Deputy Chief Chemist at Mumbai. While drawing the sample, a test memo was prepared by the Inspector under F. No. BR II/CL/ABHI/90, dat....
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....tical Pvt. Ltd. Sd/- (Authorised signatory)" "CHEMICAL NATURE AND PERCENTAGE OF INGREDIENTS IN RECOVIT AS FOLLOWS : S.No. Name of ingredients Chemical nature % in product 1. Tween - 80 (Polysorbate) Brownish yellow oily liquid 34.97% 2. Bulytated Hydroxy Anisol Crystalline powder 0.02% 3. Bulytated Hydroxy Toulene Crystalline powder 0.02% 4. Vitamin A Palmitate Yellow oily substance 2.57% 5. Vitamin B3 White powder 0.01% 6. Vitamin B 12 Red orange powder 0.0026% 7. Vitamin E Acetate Pale yellow golden Viscuss liquid 4.37% 8. Glycerine Colourless viscuss liquid 26.85% 9. Sodium Ascorbate White crystalline powder 9.62% 10. Gracial Acetic Acid Colourless liquid 0.34% 11. Water 21.23% OUTLINE OF MANUFACTURING PROCESS Step 1. Mix Vit A, Vit E, Vit D3, BHA & BHT completely in vessel. Step 2. Warm Tween - 80 upto 40 degree C and add to it mixture No. 1 in a thin stream. Stirr it well. Step 3. Add Glycerine in a think stream with stirring in 2. Step 4. Take 60 Ltrs water (D'mineralised) add to it Sodium....