TMI Blog2023 (2) TMI 675X X X X Extracts X X X X X X X X Extracts X X X X ..... heading for propionic acid, its salts and esters. As per the Rule 3(a) of General Interpretation Rules, a specific heading shall prevail over the general heading. The Hon ble High Court of Allahabad in the case of COMMISSIONER OF CUSTOMS CGO. VERSUS SONAM INTERNATIONAL SHOP NO. 9 [ 2010 (10) TMI 120 - ALLAHABAD HIGH COURT ] , held that vitamins of high concentration used for manufacture of animal feed will be classified under 2936. Admittedly, the product in this case has a very high concentration to the tune of 98%. Even though, the applicant in their application has stated that the product which they propose to import is going to be used in the manufacture of animal feed, as discussed in the preceding paragraphs, propionic acid and its salts are not excluded from the ambit of the Chapter 29 - On the contrary, there is a very specific tariff entry for this very product. Therefore, when confronted with a specific classification entry vis- -vis a residuary classification entry, one must favour the specific entry. In fact, as per the mandate of Rule 3A of the General Rules of Interpretation of Customs Tariff, the specific heading prevails over the general heading. Thus, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... letter written to the Drug Controller by the Department of Animal Husbandry also states the same. 3. The customs preventive Commissionerate of Chennai, in their comments, has stated that there is no clarity about the preparation process of the item Luprosil salt except that it is chemically named as calcium propionate or calcium di-propionate and prepared by using calcium hydroxide and propionic acid. Since, it is basically a salt of propionic acid, as per the Indian Customs Tariff, it has to be classified under the sub-heading 2915 50 00. As per the HSN explanatory notes, Chapter 23.09 includes 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. But, Luprosil salt is not obtained from any animal or vegetable materials. Moreover, it can be classified under the Heading 2309 only when it is not mentioned or specified anywhere else. Calcium Propionate is basically used as food preservative and cannot form a complete feed for th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... no one was present for the department/jurisdictional Commissionerates. Shri Vishwanathan and his colleagues explained the technical/safety data sheets, manufacturing process, composition and product label of the products. They have also submitted a compilation containing, inter alia, notifications/circulars, cross rulings, case laws etc. My attention was specifically drawn to the decision of Hon ble Tribunal in the case of Lalchand Bhimraj Tetragon Chemie as well as the C.B.E. C. Circular of 26-3-1996. Shri Vishwanathan was informed that comments have been received from one jurisdictional Commissioner which has been sent to them and they should expedite their rejoinder. Shri Vishwanathan promised to expedite the same and stated that they would be submitting another compilation at the earliest. 5. The applicant additionally submitted an excel sheet containing the end use of the product and its inactive ingredients. TABLE 1 Product name Whether the product contains additives (Yes/No) Active Ingredients Inactive ingredients Usage of inactive ingredients End-use of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Preparations of a kind used in animal feeding 2915 Carboxylic acids and their anhydrides, halides, peroxides and peroxyacids and their halogenated, sulphonated, nitrated or nitrosated derivatives; saturated acyclic monocarboxylic acids and their anhydrides, halides, peroxides and peroxyacids; their halogenated, sulphonated, nitrated or nitrosated derivatives 29155000 Propionic acid, its salts and esters 6.1 Note to Chapter 23 states that Heading 2309 includes 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 . As per HSN explanatory notes to the Heading 2309 the heading covers three types of animal feedstuff. First, complete feed, contains energy nutrients, bodybuilding protein nutrients or minerals and function nutrients. The second type of animal feedstuff, i.e., secondary feed, is the preparations devised to compensate for defi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nic acid/calcium propionate is very high (98%-100%). Propionic acid and calcium propionate, has applications in, both, food and feed industry as preservatives. From the composition of the product, it does not appear to have specific use as feed additive only. Therefore, it appears that the said product is not a premix for animal feedstuff. Thus, the product does not merit classification under Heading 2309. 6.3 Propionic acid or calcium propionate find specific entry under Heading 2915. Chapter 29 covers organic chemicals. Note 1 to said chapter states as below : 1. Except where the context otherwise requires, the headings of this Chapter apply only to : (a) Separate chemically defined organic compounds, whether or not containing impurities; (b) Mixtures of two or more isomers of the same organic compound (whether or not containing impurities), except mixtures of acyclic hydrocarbon isomers (other than stereoisomers), whether or not saturated (Chapter 27); (c) The products of headings 29.36 to 29.39 or the sugar ethers, sugar acetals and sugar esters, and their salts, of heading 29.40, or the products of heading 29.41, whether or not chemically defined; ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a product consisting of methyl acetate with methanol deliberately left in with a view to improving its suitability as a solvent is excluded (Heading 38.14). For certain compounds (e.g., ethane, benzene, phenol, pyridine), there are specific purity criteria, indicated in Explanatory Notes to Headings 29.01, 29.02, 29.07 and 29.33. In the present case, the starting material, as provided in the product brochure, is propionic acid. Luprosil salt based on propionic acid does not appear to have any impurity. The 2% unexplained component in Luprosil salt could have resulted from the manufacturing process, having no stated specific utility. Therefore, the product can be classifiable under Chapter 29 and specifically under Heading 2915. 6.5 I further find that Heading 2309 is in the nature of a residuary heading as Note I to Chapter 23 says that the Heading 2309 includes products of a kind not elsewhere specified or included, whereas sub-heading 2915 50 00 is a specific heading for propionic acid, its salts and esters. As per the Rule 3(a) of General Interpretation Rules, a specific heading shall prevail over the general heading. In this regard, the Hon ble Supreme Court in the cas ..... X X X X Extracts X X X X X X X X Extracts X X X X
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