Circular No. 573/10/2001-CX
19th March, 2001
F. No. 385/979-1021/88-AU
Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise & Customs
Subject : Interpretation of Heading 21 of the second schedule of the Customs Tariff Act, 1975 — Scope and meaning of the term ‘Animal Feed’ —Question req.
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 Custom 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 Nos. 514-556/88-D, dated 8-8-1988 [1989 (39) E.L.T. 422 (Tribunal)] in the matter of C.C.E., Guntur v. 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 view point and agitated the matter before the Apex Court. The Apex Court vide its judgment dated 15-12-2000 in C.A. Nos. 3732-3760 & 3762-3774 of 1989 (with C.A. Nos. 1685-1691 of 1997) - CCE, Guntur v. M/s. Surendera 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 Custom Tariff Act. The Apex Court has thus upheld the judgment of the Tribunal in this case. The judgment is reported at 2001 (127) E.L.T. 3 (S.C.).