TMI Blog2023 (2) TMI 214X X X X Extracts X X X X X X X X Extracts X X X X ..... ing as Chapter Note I to Chapter 23 says that the Heading 2309 includes products of a kind not elsewhere specified or included, whereas chapter sub-heading 2936 is a specific heading for vitamins and provitamins. As per the Rule 3(a) of General Interpretation Rules, the 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 all the products in this case has high concentration of vitamins ranging from 40% to 98%. Even though, the applicant in their application has stated that these products which they are importing are going to be used in the manufacture of animal feed, as discussed in the preceding paragraphs, vitamin products intended for use in animal feed preparations are not excluded from the ambit of the Chapter 29. Therefore, when confronted with a specific classification entry vis-a-vis a residuary classification entry, one must favour the specific entry. In fact, that the mandate of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... imported. It is used for vitaminization of all kinds of feed. It acts as an antioxidant which is required for cellular metabolism in the body of the animals. The formulation has absorbate and with silica as the carrier forms a compound which is complex and Vitamin E cannot be extracted as independent component. 3 LUTA.0A/D3 1000/200 PLUS Vitamin A Acetate (retinyl acetate) min 1 miu IU/gm/Vitamin D3 (Cholecalciferol) 0.2 miu IU/gm, approx. 40.5% Inactive Ingredients : Gelatin Glucose/Fructose (Organic matrix), Silica (Inorganic matrix), Phosphoric acid and disodium salt (preservatives), Butylhydroxytoluene antioxidants) and water. Formulation : Powder It is required for development, protection and re-generation of skin and mucosa. It is a matrix of carbohydrates, gelatins and antioxidants. It forms a compound which can t be reformulated to suit any other use and the product is used post importation, by directly mixing into animal feed. It is suitable as a supplement for all types of animal feed. The Vitamin A: Vitamin D3 ratio of 5:1 permits the product ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion of animal feed, classification under Heading 23.09 of the Customs Tariff as premix for animal feed is also a possibility. Further, the domestic industry is also classifying similar products under the Heading 23.09 of the Tariff. 3.4 This classification adopted by the domestic industry is also supported by the Circular No. 80/54/2018-GST, dated 31-12-2018 issued by Ministry of Finance, Department of Revenue (Tax Research Unit) to clarify the applicable GST rates and classification of certain products. In this circular, it has been stated that if the vitamin premixes are supplied in a form ready to be used in animal feed and are incapable of being used for other purposes then the same will be classified under Heading 23.09. The relevant portion of the circular is as under :- 5. Applicable GST rate on Animal Feed Supplements/feed additives from drugs : 5.1 Representations have been received seeking clarification regarding GST rate applicable on Animal Feed Supplements/feed additives from drugs. The dispute is in classification of Animal Feed Supplements/feed additives from drugs between tariff heading 2309 and 2936. 5.2 As per the HSN, 2309 inter alia covers vitamins ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... plication, therefore, was forwarded to all the jurisdictional commissioners of customs for comments. However, no reply has been received, though reminders have also been sent. 5. The application along with the other 4 applications of the applicant was listed for hearing on 1-6-2022. Sh. T. Vishwanathan and others appeared on behalf of the applicant. No one appeared on behalf of the Commissioners of Customs. Sh. Viswanathan explained the technical/safety data sheets, manufacturing process, composition, and product labels of each item for which advance ruling has been sought. The applicant also submitted a compilation containing, inter alia, notifications/circulars, cross-rulings, case laws, etc. My attention was specifically drawn to the decisions of the Hon ble Tribunal in the case of Lalchand Bhimraj [2007 (220) E.L.T. 189 (Tri. - Chen.)] Tetragon Chemie [2001 (138) E.L.T. 414 (Tribunal)] and the C.B.I. C. Circular of 26-3-1996. Shri Vishwanathan gave assurance to submit detailed compositions along with a manufacturing flow chart of the products. 6. I have considered all the materials placed before me in respect of the subject products. I have gone through the submission ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anic substances (e.g., magnesite, chalk, kaolin, salt, phosphates). The concentration of the substances described in (1) above and the nature of the carrier are determined so as to ensure, in particular, homogeneous dispersion and mixing of these substances in the compound feeds to which the preparations are added . Therefore, these preparations may contain vitamins, however, they are accompanied by a carrier/s to ensure homogeneity. In other words, if the feed additive is mixed with an animal grade carrier then it would be classifiable under Heading 2309. 6.3.1 As per the exclusion list provided in explanatory notes, vitamins are excluded from the said heading under conditions mentioned below : (e) Vitamins, whether or not chemically defined or intermixed, whether or not put up in any solvent or stabilised by the addition of antioxidants or anticaking agents, by adsorption on a substrate or by applying a protective coating of, for example, gelatin, waxes, fats, etc., provided that the quantify of such additives, substrate or coating does not exceed that required for preservation or transport and provided that such additives, substrates or coating do not alter the character o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder it particularly suitable for specific use rather than for general use. 6.5 While Chapter 29 talks about separate chemically defined compounds, the explanatory notes to HSN provides for products which remain classified in Chapter 29, even when they are not separate chemically defined compounds. There are certain exceptions to the rule that Chapter 29 is limited to separate chemically defined compounds. These exceptions include provitamins and vitamins (including concentrates and intermixtures), whether or not in a solvent. 6.6 I further find that Chapter Heading 2309 is in the nature of a residuary heading as Chapter Note I to Chapter 23 says that the Heading 2309 includes products of a kind not elsewhere specified or included, whereas chapter sub-heading 2936 is a specific heading for vitamins and provitamins. As per the Rule 3(a) of General Interpretation Rules, the specific heading shall prevail over the general heading. In this regard, the Hon ble Supreme Court in the case of Dunlop India Ltd. Madras Rubber Factory Ltd. v. Union of India and Others reported in 2002-TIOL-647-SC-CUS-LB = 1983 (13) E.L.T. 1566 (S.C.), has held as follows : When an article has, by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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