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2022 (7) TMI 1434 - CUSTOMS AUTHORITY FOR ADVANCE RULINGS, MUMBAIClassification of goods intended to be imported - carotenoid products, namely Lucantin Red 10% NXT, Lucantin Yellow 10% NXT and Lucantin Pink - to be classified under heading 3204 of HSN or not? - HELD THAT:- The impugned products are a combination of active ingredients and other ingredients such as antioxidants, minerals and stabilisers - These goods consist of active ingredients, preservatives, anti-oxidants and carriers. As per HSN explanatory notes, active ingredients (vitamins, pro vitamins, amino acids, etc) with a suitable carrier along with additives required for preservation and transport is a premix, which is added to the complete animal feed or supplementary animal feed. The Hon'ble Tribunal in RECKITT AND COLMAN OF INDIA LTD., CALCUTTA VERSUS COLLECTOR OF CENTRAL EXCISE, CALCUTTA [1985 (4) TMI 306 - CEGAT NEW DELHI] has held that to qualms as a preparation the said product should be prepared by addition, mixing or such other similar process to the original commodity in order to derive a new commodity. From the above, it is clear that the products under consideration are preparations, also known as premixes. It is observed that heading 2309 is an end-use-based heading. In this regard, reliance may be placed on the decision of the large bench of the Hon'ble tribunal in the case of TETRAGON CHEMIE (P) LTD. VERSUS COLLECTOR OF C. EX., BANGALORE [1998 (9) TMI 390 - CEGAT, NEW DELHI], wherein it was held that end-use assumes importance in determining the classification of goods under heading 2302 of CETA, 1985. The same is because the description of the goods under heading 2302 reads as 'Preparations of a kind used for animal feeding including cat and dog food'. The heading specifically states that the preparations must be used for animal feeding. Therefore, heading 2302 is an end-use-based heading. It is to be noted that the active ingredient presents in the impugned goods, i.e., carotenoid, does not exceed 10% by composition (Table 4). Further, it can be observed that heading 3204 pertains to synthetic organic colouring matter or preparations based on synthetic organic colouring matter. However, the impugned goods are not simple colouring matters, rather they are compound preparations used for animal feed as additives having active ingredients such as carotenoids. HSN explanatory notes state that certain of these substances are also used as laboratory reagents or for medical purposes - The impugned products are not used for their dyeing properties. They are specifically used as animal feed for improvement in the quality of eggs and skin due to pigmentation after consumption. Therefore, the said products do not merit classification under heading 3204. The 3 products, i.e., Lucantin Red 10% NXT, Lucantin Yellow 10% NXT and Lucantin Pink are classifiable under heading 2309 and more specifically, under subheading 23099090 of the first schedule to the Customs Tariff Act.
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