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2022 (7) TMI 1435 - CUSTOMS AUTHORITY FOR ADVANCE RULINGS CUSTOMS, MUMBAIClassification of goods intended to be imported - 17 enzyme products - to be classifiable under heading 3507 or under heading 2309? - HELD THAT:- The impugned products are a combination of active ingredients and inactive ingredients such as antioxidants, minerals and stabilisers - These goods consist of active ingredients, preservatives, stabilisers and carriers. As per HSN explanatory notes, active ingredients 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 Hon'ble 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 must be noted that heading 2302 of CETA, 1985 is akin to Heading 2309 of the Customs Tariff Act, 1975. As per the HSN explanatory note, the heading 2309 excludes protein substances of Chapter 35. However, the impugned products contain these protein substances, i.e. enzymes in very small quantities. They can't be considered as protein only product, rather they are products containing enzymes among other substances like stabilisers, solvents, preservatives and carriers. Therefore, the impugned goods do not appear to be hit by the above-mentioned exclusion clause. It is to be noted that the active ingredient present in the impugned goods is in the range of 1.2% to 17%. The products, apart from enzymes, also include stabilisers, solvents, preservatives and carriers. The inclusion of such additives makes the impugned products suitable for specific use. Therefore, while classifying the product as a whole need to be considered rather than only the active ingredient present in the specific product. The products, are specifically used to enhance nutrient digestibility and help in enhancing the nutritive value of the animal feed. Therefore, the said products do not merit classification under heading 3507. The 17 products listed in Table 1 are classifiable under heading 2309 and more specifically, under subheading 23099090 of the first schedule to the Customs Tariff Act, 1975.
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