COMMISSIONER OF CENTRAL EXCISE, PUNE versus ABHI CHEMICAL & PHARMACEUTICALS PVT. LTD.

Citation: [2005] 2 S.C.R. 210 · Decided: 21-02-2005 · Supreme Court of India · Bench: S.N. VARIAVA · Disposal: Dismissed

Judgment (excerpt)

A 
COMMISSIONER OF CENTRAL EXCISE, PUNE 
v. 
ABHI CHEMICAL & PHARMACEUTICALS PVT. LTD. 
FEBRUARY 21, 2005 
B 
(S.N. VARIA VA, DR. AR. LAKSHMANAN AND S.H. KAPADrA, JJ.] 
Central Excise Tariff Act, 1985; Tariff Headings 23.02 and 29.36; Trade 
Notice No.3411990/Policy Circular No.9911997 issued by Central Board of 
C Excise and Customs : 
Classification-Recovit and Daily Mix-Levy of exCise duty under Tariff 
Headings 23.02 or 29.36-Held: Chemical test report reveals that the product 
in question is a mixture df vitamins and oxidants etc., thus cannot be called 
as only intermixture of vitamins classifiable under Tariff Heading 29.36-
D Issuance of Circular by the Board clarifying that a product like the product 
in question would fall under Tariff Heading 23. 02 provided it is used exclusively 
as animal feed supplements-In a similar matter Supreme Court held the 
product in question as animal feed supplement-Hence, the product classifiable 
under Tariff Heading 23.02. 
E 
The question which arose for determination in this appeal was as to 
whether the product Dailymix/Recovit is classifiable under Tariff Heading 
23.09 as animal feeding as claimed by the Assessee-manufacturer or under 
Tariff Heading 29.36 as intermixture of vitamins as classified by the 
Revenue for the purpose of levy of excise duty. 
F 
It was contended for the appellant-Revenue that both the 
Commissioner (Appeals) and the CEGA T have totally ignored the 
chemical test report in respect of the product in question to determine its 
classifiability; that the product in question should be treated as animal 
feed supplement containing vitamins and minerals; that both the 
G Commissioner (Appeals) and the CEGAT have erred in placing total 
reliance on the judgment in the case of Tetragon Chemie (P) Ltd.*; since 
the product in that case consists of a mixture of vitamins, minerals and 
various other ingredients classifiable under Chapter Sub-heading 2936.00 
but the product in question consists of only intermixture of vitamins. 
H 
210 
' --
L 
C.C.E. r. ABHI CHEMICAL & PHARMACEUTICALS PVT.LTD. 
211 
Assessee submitted that since the classification list classifying the A 
products under Tariff Heading 23.02 has been approved by the Revenue 
Authorities, they are not allowed to change their own decision later on; 
that the product in question was used as animal feed only and as such 
classifiable under Tariff heading 23.02; that the product basically consists 
of mixture of vitamins, minerals, anti-oxidants and stabilisers and thus 
· 
B 
the Revenue has wrongly classified the product Ui1der Chapter 29 as 
intermixture of vitamins. 
Dismissing the appeal, the Court 
HELD : 1.1. The products in question which have mixture of C 
vitamins and minerals with addition of other ingredients and which are 
used for animal feed are not fit for human consumption. Hence, they 
should be classified as animal feed supplement under Chapter Heading 
2302 and not under Chapter 29. (215-A) 
1.2. The Central Board of Excise and Customs issued a Circular r:;> 
clarifying that when premix contains in addition to active substances, 
stabilizers, anti-oxidants etc. and if such preparations are of a kind used 
in animal feeding the same is classifiable under Heading 23.02. Similarly, 
the Dy. Director General of Foreign Trade vide its policy Circular No.44 
has re-confirmed that if such pre-mixes are for use exclusively for animal E 
feed as supplements, the same continued to be classified under Heading 
23.09 of the Customs Tariff Act, 1975. (216-G; 219-A-Bl 
1.3. The Chemical test memo revealed that the product Recovit had 
in addition to the intermixture of vitamins other ingredients such as anti-
oxidants, solvents and stabilisers and that the product prepared cannot, F 
therefore, be called as only intermixture of vitamins. (219-G-H) 
2. A larger Bench of the CEGAT in the case of Tetragon Chemie (P) 
ltd. and Ors. v. CCE, Bangalore and Ors., (1999) 82 ECR 98 has laid down 
the principle and also the classification in regard to the subject-matter of 
controversy. This Court upheld the view taken by the Tribunal and held G 
that the products in question are animal feed supplements, thus they were 
rightly included in Tariff Item 23.02 being preparation of a kind used in 
animal feeding; and that even food supplements which are used in animal 
feeding would fall under Heading 23.02. (222-E-Fl 
H 
212 
SUPREME COURT REPORTS 
(2005] 2 S.C.R. 
A 
Collector of Central Excise, Ban

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