2011 (3) TMI 105

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..... t acid) contains calcium and phosphorous present in the bones in the form of mono phosphate. Spent acid is neutralized with milk of lime solution to separate the inorganic matter in powder form and this material finds use as animal feed supplements. In 1996, the department held the view that the above product was classifiable under Chapter heading 28.35 (covering inorganic chemicals and chemical compounds) attracting 20% BED and show-cause notice dt. 31.10.96 was issued proposing classification under the above mentioned heading; adjudication order held that the product was classifiable under CET sub-heading 2302.00 and is entirely different from the one obtained from chemical reaction and not covered as Di-Calcium Phosphate derived from che .....

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..... cation of animal feed grade Di-Calcium Phosphate manufactured by the assessees under CET subheading 2302.00 was settled.   2. The issue was reopened by a SCN dt. 5.12.2007 covering the period from 1.3.2005 to 31.3.2007 and SCN dt. 26.3.2008 covering the period April 07 to Jan 08 raising demands of Rs.3,00,30,126/- and Rs.27,53,680/- respectively on the ground that Di-Calcium Phosphate i.e. Calcium Hydrogenoorthophosphate is a separate well defined compound, specifically mentioned under CET sub heading 2835 25 00 in the 8 digit tariff introduced w.e.f. 1.3.2005, which is classifiable thereunder w.e.f. 1.3.2005. The Commissioner of Central Excise dropped the proceedings vide impugned order dt. 30.10.2008; hence this appeal by the Revenu .....

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..... (SC).   4. In the 8 digit tariff introduced on 28.2.05, Heading 23.09 covers products of a kind used in animal feeding, not elsewhere specified or included, obtained by processing vegetable or animal materials to such an extent that they have lost the essential characteristics of the original material, other than vegetable waste, vegetable residues and by-products of such processing . Thus, the coverage under the erstwhile Heading 23.02 and the present Heading 23.09 are the same. As regards Heading 28.35 prior to 28.2.2005, it covered Phosphinates (hypophosphites), Phosphonates (Phosphites), phosphates and poly-phosphates whether or not chemically defined . Di-Calcium Phosphate falls under the category of phosphates. All the items cov .....

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