Circular No. 573/10/2001-CX, dated 19th March, 2001

Scope and meaning of the term ‘Animal Feed’

Sub :

Interpretation of Heading 21 of the second schedule of the Customs Tariff Act,1975-scope and meaning of the term ‘Animal Feed’-

As you are aware, there has been a long dispute in regard to classification of D-oiled rice brand 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 & Fet. 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 view point 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.)

(K.K.JHA)
Director (Review)

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