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14. Reference can also be made to McGraw-Hill Encyclopeadip of Science and Technology, Vol. I, Page 457 under the heading 'Animal-Feed Composition'. It has been there pointed out that the chemical of animal feeds can be considered as falling into three categories; water content (moisture), certain groups of natural organic compounds and inorganic or mineral elements. A group of essential but unrelated organic compounds, occuring in smaller concentration, consists of Vitamins. At Page 458. under the heading 'Feed Supplements' it has been observed that the manufacture of commercial mixed feeds has become a very important industry in the United States. Prior to 1949, the principal feed additives used in these mixed feeds were minerals and protein concentrates. Since that date, there has been enormous expansion in large sale manufacture of vitamins, antibiotics, hormones and essential aminoacids. These substances have been added to mixed feeds as supplements having either direct action or metabolism and growth or indirect action through control of bacterial growth and infection. Although an ample supply of all vitamin requirements of livestock usually can be made up through the use of common feeds, vitamins are becoming more general as feed additives in commercial feeds. Various kinds of vitamins are added to commercially mixed feeds for poultry, swine and, to a limited extent, for calves, Increasing amounts of fat soluble vitamin A are being produced for all types of livestock. This vitamin, which formerly was supplied as a fish liver oil to be fed separately because of the rapid destruction of the vitamin on oxidation, is available in a stabilised form with small particles of the covering of a synthetic wax, gelatin, or other material.

20. S/Shri V. Lakshmikumaran, V.S. Nankani, J.S. Patel. P.C. Anand and R.G. Sheth, Advocates appeared for the Assessees whereas Shri B.K. Gupta, the Id. Joint Chief Departmental Representative appeared for the Revenue.

21. It was argued for M/s. Tetragon Chemie (P) Ltd., that since there is no appeal filed by the Department on the issue of limitation, arguments are being adduced only on classification of the products manufactured by the Appellants.

22. It was contended by the Id. Counsels for the Assessees that animal feed' has not been defined in the Tariff or the rules made there under. Therefore, reliance has to be placed on the technical literature on the subject and general understanding of the trade who deal in the goods or who purchase the goods, in addition to the case law on the subject. It was contended that affidavits from experts and their opinions were produced before the lower authorities indicating that the product manufactured by them was known in common paralance as concentrates, premix, feed additives and feed supplement. A reference was made to the decision of the Hon'ble Gujarat High Court in the case of M/s. Glaxo Laboratories (India) Limited 1979 (43) STC 386 wherein the Hon'ble High Court held that feed consists not only of that constituent which is essential for maintenance of life, but also other constituents which provide energy require for production, be it the production of calf or milk or output of work and that vitamins are considered essential for the proper nutrition of livestock and such vitamins A & D have to be supplied to the Animal through their feeds. The Hon'ble Gujarat High Court further observed that this study of animal feed composition and feed supplements brings out clearly the fact that in the manufacture of commercially mixed feeds, several feed additives are used and that amongst them, are included vitamins A & D. It was also observed: The Tribunal had there taken the view that those two products supplied mineral deficiencies in the normal feed for animals and poultry and that they promoted growth, production, health and breeding; that those products, therefore, were meant to serve as tonics for the animals or poultry. According to the view of the Tribunal in that case, the word 'feed' meant that the food especially for livestock or a mixture or preparation used for feeding livestock. Having regard to the said meaning of the word 'feed' according to the Tribunal, the two products in question could not be said to be cattle feed or poultry feed as the case may be. This view of the Tribunal was based on the narrow meaning which it assigned to the word "feed' which according to it, meant, in substance, ration for maintenance. This view, as earlier pointed out, is not correct'. It was contended that the cattle feed and poultry feed must include not only that food which is supplied to the domestic animals or birds as an essential ration for the maintenance of life but also that feed which is supplied over and above the maintenance requirements for growth etc.

71. We have considered the extensive arguments adduced by both the sides. We have also perused the case law on the subject. We have also examined the technical literature, the opinions expressed by various experts and affidavits filed by users. We have also perused the evidence on record.

72. The entire controversy centres round the contention whether Chapter 23 of CETA 1985 covers preparations of a kind used in animal feeding which contain minerals or synthetic active ingredients. Detailed arguments have been adduced on Note to Chapter 23. Revenue contended that Chapter 23. according to the Note covers only products of a kind used in animal feeding obtained by processing vegetable or animal materials. They supported this contention by citing and relying upon the decision of this Tribunal in the case of M/s. Ranbaxy Laboratories. It was contended for the Revenue that the word 'includes' used in the Chapter Note should be read as covers and does not extend the scope of the Chapter, whereas the Assessee's Counsels argued at length and submitted that the use of the word 'includes' extends the scope of the words used in the Chapter Note. We have perused the detailed arguments. On careful consideration of the submissions made and the case law cited and relied upon by both sides, we find that there is no limiting factor in the Chapter note so as to restrict its meaning. On the contrary, we find that Heading 23.02 of CETA 1985 corresponds to Heading 23.09 of HSN. Explanatory Notes under Heading 23.09 of HSN speak of various preparations which contain minerals, vitamins, carbohydrates, proteins etc. These explanatory Notes of HSN clearly speak of feed additives and feed supplements. According to these Notes, animal feed additives and animal feed supplements are preparations meriting classification under heading 23.09 of HSN which corresponds to Heading 23.02 of the CETA 1985. We further note that this aspect of animal feed additives and feed supplements was noted by the Tribunal in its judgment in the case of Aries Agro-Vet Industries (P) Limited and observed that 'We think, however, that the right direction is the one in which an animal feed is understood to be a complete feed or as complete a feed as such feeds can be made to be by human ingenuity and that feed can never be only one or another of the various ingredients, elements, substances that an animal needs in a balanced feed.

94. From what has been stated above, it becomes clear that even in its popular sense, that is to say, the sense in which people conversant with livestock farming and poultry raising and those dealing in cattle-feed or poultry feed would attribute to those words, ration for production, such as feed additives or supplements like proteins, minerals, vitamins etc. In such a context, it is clear that feed additives or animal feed supplements are added to the animal feed, which is termed 'ration which is necessary for maintaining the" life of the livestock. These additives/supplements comprise of proteins, minerals, vitamins etc.