GLAXO INDIA LTD Vs. COLLECTOR OF CENTRAL EXCISE
CUSTOMS EXCISE AND GOLD(CONTROL) APPELLATE TRIBUNAL
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Jyoti Balasundaram, Member (J) -
(1.) THE dispute in these appeals relates to the classification of animal feeds manufactured by the appellants and marketed by them under the brand names of Vitablend and Vimeral - Whether under Chapter 23 CET, 1985 as "preparations of a kind used in animal feeding" as contended by the assessees or under Chapter 29 as held by the Department. The products are a mixture of Vitamins and minerals with the addition of other ingredients such as Calcium Phos -diabasic, Polythelene Glycol, Di -Sodium Edetate, Glycerine, Polysorbate, Propyl Gellate, Sorbital, Acetic Acid Glycial, Butyl Hydroxy Anisole, Butyl Hydroxy Toluene, Nijpaset, Sodium Acetate. As the Department was of the opinion that in order to qualify for classification under Heading 23.02 the product must be of a kind used in animal feeding which is obtained by processing vegetable or animal materials while the products were formulations of vitamins manufactured synthetically, the products were classified under Chapter 29. Hence these appeals.
(2.) THE issue is well settled by the order of the Tribunal in the case of Roche Products Ltd. v. C.C.E. - Order No. 1101/90 -C, dated 9 -10 -1990, classifying identical products marketed under the brand names of Rovimix, Rovibe, Rovisol under Heading 2303.00. The Tribunal observed as follows:
"On a careful consideration of the submissions made, we find that the Chapter Note to Chapter 23 states that Heading 23.02, "Preparations of a kind used in animal feeding, including dog and cat food", includes (emphasis supplied) products of a kind used in animal feeding obtained by processing vegetable or animal material. It is well settled that the word 'include' is a word of enlargement which is generally used in definitions and interpretation clauses in order to enlarge the meaning of the words and phrases occurring in the body of the statute and when it is so used, the word or phrases must be constructed as apprehending much more than things as they signify according to the natural import. Further there is also evidence of the Department's own understanding of the issue as reflected in the letter F. No. 9/4/89 dtd. 24 -11 -1989 CX of the Finance Ministry available on record which is a contemporaneous expositio to be taken note of in deciding the issue by the Tribunal. In that letter reference is made to the discussion on classification of animal feed supplements in the Collector's Tariff Conference and it is noted that Central Excise Tariff Heading 23.02 corresponds to HSN Heading 23.09 and that Heading 23.09 of HSN includes animal feed supplements which are devised to compensate deficiency of proteins, minerals and vitamins and to ensure balanced animal diet. The Board noted that these products are not fit for human consumption and opined that they are correctly classifiable under Heading 23.02 as preparations of kind used in animal feeding. Following it, the Collectorate had clarified this to the Trade in its Trade Note dtd. 12 -12 -1989 referred to above. Board's letter has followed the HSN Heading 23,09 which corresponds to Heading 23.02 of CETA, 1985 and it is now well recognised that the CETA, 1985 is broadly patterned on HSN and hence the HSN heading and Explanatory Notes provide a useful guide in determining issues of classification."
(3.) RESPECTFULLY following the ratio of the above decision, we set aside the impugned orders and allow the appeals with consequential relief.;
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