2023 (6) TMI 960 - CESTAT CHENNAI

Classification of imported goods - squid liver powder - classifiable under CTH 2309 as Preparations of a kind used in animal feeding as finalized by Revenue, or under CTH 2301 as Flours, meals and pellets, of meat or meat offal, of fish or of crustaceans, molluscs or other aquatic invertebrates, unfit for human consumption; greaves, claimed by the appellants?

HELD THAT:- CTH 230120 preferred by the appellants covers ‘flours, meals and pellets, of fish or of crustaceans, molluscs or other aquatic invertebrates’. The heading does not cover products containing ingredients of plant origin. Since ‘squid liver powder’ contains a mix of ingredients both of molluscs and plant origin, from a plain reading of the heading, squid liver powder does not fall under the heading.

The heading 230990 covers preparations for used in making the complete feed or supplementary feed and need not be an end product in themselves. As per the notes ‘this heading covers sweetened forage and prepared animal feeding stuffs consisting of a mixture of several nutrients designed for use in making complete or supplementary feeds’. Further as stated by the appellants squid liver powder contains certain proteins, peptides and amino acids in it. They are in line with the HSN description, as being composed consisting of a number of substances, sometimes called additives, the nature and proportion of which vary according to the animal production requirement. As stated by appellants, squid liver powder is used in shrimp feed formulation as an attractant. It is common knowledge that feeding is the main way for fish to obtain nutrition for the survival, growth and reproduction of fish/ shrimp etc. Attractants are added to the feed to improve not only the feed palatability thereby reducing wastage but also to increase feed intake resulting in fish growth, and are mainly used in captive fish farms. It hence ensures that the fish/shrimp make good use of the feeds and safeguard its health - apart from a plain reading of the Customs Tariff the classification of squid liver powder under 2309 also satisfies the relevant notes (A) and (C) of II ‘Other Preparations’ given in the HSN. Hence squid liver powder merit classification under the CTH 2309. Since the product is described as being a high-quality feed ingredient for aqua feed and all type diet for animals, the product which is not for exclusive use for fish, prawn etc. has been correctly classified under CTH 23099090.

Also, Revenue has discharged this duty effectively and that the discussions made in the impugned orders show the correct classification of goods under CTH 2309.

Thus, the classification of the ‘Squid Liver Powder’ has been correctly done under CTH 23099090 and hence the impugned orders are upheld. The appeals stand rejected.