TMI Blog2014 (10) TMI 119X X X X Extracts X X X X X X X X Extracts X X X X ..... ultry feed supplement and cleared to DTA. The appellants who are fully aware of the new product and its usage and on their own given a specific name and description as HPPM as ‘poultry feed supplement’. Product HPPM is fully satisfies the description given under chapter note of heading 23 of CTA and chapter note of chapter 23 of CETA. Therefore, the product cannot be classifiable under Ch. 2301 of CETA, as a waste as claimed by the appellants. The product of a kind used in animal feeding cannot be covered under Ch. 2301 of CETA. By virtue of chapter note of chapter 23 of CETA read with Explanatory Note to sub-heading 2309 of HSN, we are of the considered view that the product HPPM is rightly classifiable under Ch. 2302 of CETA and Ch. 2309 of CTA. chapter heading 2301 includes the animal wastes such as meat and meat offals only other than bones and other materials. Whereas, as seen from the process, as explained by the appellants themselves before the lower authorities, it is very clear that the poultry wastes used by the appellants for preparation and manufacture of HPPM are intestines, feathers, heads, legs, blood and other offals. Poultry waste of heads, legs contains bones ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was extended. (viii) The appellants filed these appeals to the extent of challenging the classification of HPPM under Heading No. 2302.00 of CETA and 2309.90 of CTA. 3. The Ld. Advocate on behalf of the appellants submits that High Protein Poultry Mash (HPPM) is a waste product arising during the course of process of manufacture of Processed Frozen Whole Chicken Meat . Thus, it is a residue and waste from the food industry (i.e. preparation of Processed Frozen Chicken Meat) and rightly classifiable under 2301.00 of CETA and not under 23.02 of CETA as preparation of a kind used in animal feeding . Heading 23.01 of CETA corresponds to Ch. 23.01 to 23.08 of CTA and heading No. 23.02 of CETA corresponds to heading No. 23.09 of CTA. He further submits that as per the Environment Protection Act and the Manual of Solid Waste Management, it is mandatory to process the waste materials consisting of non-edible offals and animal tissue and organs etc., and to be disposed of by rendering. The process carried out by them for processing of poultry waste material is similar to the description provided under Chapter 23 of Explanatory Notes to HSN. Merely by carrying out, the process by s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder the specific sub-heading and (4) how the goods are commercially described, should be taken in to consideration. The appellants themselves cleared HPPM by describing as poultry feeder supplement. Therefore, it is rightly classifiable under 23.02 of CETA and 23.09 of CTA. HSN notes to Heading 23.01 covers Flours and meals, unfit for human consumption, obtained by processing either the whole animal (including poultry, marine mammals, fish or crustaceans, molasses or other aquatic invertebrates) or animal products (such as meat or meat offal) other than bones, horns, shells, etc. But, the product manufactured by the appellants contain poultry wastes like intestine, feathers, heads, legs, blood and other offals. Therefore, he submits that HPPM is not exclusively obtained from meat and meat offals and hence they are not covered under 2301 of HSN. He relied upon various case laws as under:- 1. Sonam International 2012 (275) ELT 326 (All.) 2. Tetragon Chemie (P) Ltd. Vs. Collector of CE. 2001 (138) ELT 414 (Tri.-LB) 3. CC, Mumbai Vs. Piramal Healthcare Ltd. 2004 (178) ELT 487 (Tri.-Mum.) 5. We have carefully gone through the various submiss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ious processes and the resultant product is described by the appellant as HPPM, which is in powder form. The appellants have cleared HPPM to DTA units by describing the product in their invoices as Poultry feed supplement . 5.3 The Ld. Advocate for the appellants mainly relied on the HSN Explanatory Notes to Heading 2301 and 2309. He argued that the processes are covered under the HSN explanatory notes as a waste. The relevant portion of the Tariff description of CETA, CTA and HSN and exemption notification are reproduced below:- a) Chapter 23 of CETA, 1985 RESIDUES AND WASTES FROM THE FOOD INDUSTRIES PREPARED ANIMAL FODDER Heading No. 23.02 includes products of a kind used in animal feeding elsewhere specified or included, obtained by processing vegetable or animal materials to such an extent that they have lost the essential characteristic of the original material, other than vegetable waste, vegetable residues and by product of such processing. Heading No. Sub-heading No. Description of goods 23.01 2301.00 Residues and waste from food ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are manufactured wholly from indigenous raw materials. 5.4 The Ld. Advocate relied on HSN Explanatory Notes of Heading 2301, which is reproduced as under:- 2301: Flours and meals, unfit for human consumption, obtained by processing either the whole animal (including poultry, marine mammals, fish or crustaceans, molasses or other aquatic invertebrates) or animal products (such as meat or meat offal) other than bones, horns, shells, etc. These products (obtained mainly from slaughter houses, floating factories which process fishery products, canning or packing industries etc.) are usually steam-heated and pressed or treated with a solvent to remove oil and fat. The resultant product is then dried and sterilized by prolonged hearing and finally ground. The heading also covers the above products in the form of pellets (see the General Explanatory Note to this Chapter) The flours, meals and pellets of this heading are used mainly in animal feeding, but may also be used for other purposes (e.g. as fertilizers). 6. We find that Chapter 23 covers the various residues and wastes from food industries also includes prepared animal fodder, certain products of an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... should have been obtained by processing of vegetable of animal material, and (iv) the said resultant product has lost the essential character of the original material. In the present case the HPPM meets all the above criteria. Further, we find that the explanation provided to the heading 2309 of HSN, is akin to Chapter note of 23 of CETA. It is further explained that the product obtained from vegetable materials those of which have been treated to such an extent that the character of cellular structure of the original vegetable material is no longer recognizable in the microscope. Sub-heading 2309 of HSN also covers interalia dog or cat food and other items and Sweetened forage and prepared animal feeding stuffs. It is evident from the above that the products classified under the heading can be composite food or supplementary food or for use in making composite or supplementary for using animal feed. 8. From the above, explanation to HSN explanatory note, it is evident that the products of this heading is not only covers preparation of a kind used in animal feeding but also includes products directly obtained from vegetable or animal or without addition of any nutrients. Theref ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion dated 30-6-1975. 87. Examining the preparations mentioned under Heading 23.09 of HSN, we note that these preparations contain minerals, carbo-hydrates, vitamins etc. In construing entries of goods in excise, customs, or Sales Tax Acts, resort should normally be had not to the scientific or technical meaning but to their popular meaning viz. the meaning attached to the expressions by those dealing in them. The justification of the rule that the words are to be understood in their natural, ordinary or popular sense is well expressed by Justice Frankfurter : After all legislation when not expressed in technical terms is addressed to common run of men and is, therefore, to be understood according to sense of the thing, as the ordinary man has a right to rely on ordinary words addressed. The Hon ble Supreme Court has consistently taken the view that, in determining the meaning or connotation of the words and expressions describing an article in a tariff schedule, one principle which is fairly well settled is that those words, and expressions should be construed in the sense in which they are understood in the trade by the dealer and consumer. The reason is that it is they who ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... idered view that the product HPPM is rightly classifiable under Ch. 2302 of CETA and Ch. 2309 of CTA. In the case of Laljee Godhoo CO., Jubilant Organosys Ltd. (supra) and other cases, the citations relied by the appellants are distinguishable and not applicable to the present case. 11. At this juncture, it is also relevant to see that the Ld. AR drew the attention of the explanatory note of HSN subheading 2301 (supra), which covers the products obtained by processing either whole animal or animal products (such as meat, meat offals) other than bones, horns, shells etc. By careful reading of the above explanation, we find that chapter heading 2301 includes the animal wastes such as meat and meat offals only other than bones and other materials. Whereas, as seen from the process, as explained by the appellants themselves before the lower authorities, it is very clear that the poultry wastes used by the appellants for preparation and manufacture of HPPM are intestines, feathers, heads, legs, blood and other offals. Poultry waste of heads, legs contains bones and other materials. It cannot be called as only meat and meat offals, as claimed by the appellants. Therefore, the produc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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