| Date: |
19-03-2001
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| Notification No: |
Central Excise Circular No 573/2001
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| Issuing Authority: |
Central Excise
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| Type: |
Circular
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| File No: |
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| Subject: |
Regarding interpretation of Heading 21 of the Second Schedule of the Customs Tariff Act, 1975 - Scope and meaning of the terms `Animal Feed' – Question
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Regarding interpretation of Heading 21 of the Second Schedule of the
Customs Tariff Act, 1975 - Scope and meaning of the terms `Animal Feed' �
Question
Circular
No. 573 dated 19th March 2001
As
you are aware, there has been a long dispute in regard to classification of
D-oiled rice bran extraction, Niger seed extraction of topioca chips and sesame
seed extractions as animal feed falling under Tariff Heading 21 of the second
schedule to the Customs Tariff Act, 1975. The core question thus related to the
factum of export duty being leviable thereon during the relevant period. The
Tribunal in its order No. 514-556/88-D dt. 8.8.1988 in the matter of CCE, Guntur
vs. M/s. Surendra Cotton Oil Mills & Fert. Co. Etc. etc. had answered that
since those products were only ingredients of animal feed `and not animal feed'
by themselves, the same would not come within the ambit of the term `animal
feed' as detailed in the status.
The
Department did not accept the CEGAT's viewpoint and agitated the matter before
the Apex Court. The Apex Court vide its judgement dt. 15.12.2000 in C.A.
Nos.3732-3760 & 3762-3774 of 1989 (with C.A. Nos. 1685-1691 of 1997) - CCE,
Guntur vs. M/s Surendra Cotton Oil Mills & Fert. Co. Etc. etc. has held that
oil cakes and rice bran as exported by the respondent cannot be termed to be
`animal feed' warranting invocation of Heading 21 of the Customs Tariff Act. The
Apex Court has thus upheld the judgement of the Tribunal in this case. The
judgement is reported at 2001 (127) ELT 3 (S.C.)
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