TaxTMI 
TaxTMI 
2023 (2) TMI 214
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.... for use in the manufacture of animal feed/supplements. Details of the vitamin premixes proposed to be imported by the applicant are as under :- TABLE-1 Sr. No. Product Name Composition Purpose, form of import & manner of usage 1 LUTA.CALPA N 98% Active ingredient Minimum 98% Calcium D Pantothenate Inactive ingredient - Less than 2% water Formulation : Granulate * It is an animal feed supplement required for protein, carbohydrate and fat metabolism in the body. * It is imported in the form of granules. * In the as imported form, the product is directly mixed into animal feed and given to the animals 2 LUTA.E 50 Vitamin E Acetate (DL - alpha tocopheryl acetate) min 50% Inactive ingredient-silicic acid 50% (an absorbent which acts as a carrier) Formulation : Powder It is a powder formulation to be used in animal feed in the form in which it is 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 compon....
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....elled, marketed and considered by the trade is for use only in preparation of animal feed. That these products can be used only for animal feed purpose has also been clarified by the Department of Animal Husbandry, Dairying and Fisheries. Clarifications have also been issued by the Drug Controller General (India) in this regard. 3.3 The global desk of the applicant has been classifying all the products mentioned in the preceding table as vitamin premixes under HS Code 29.36. However, as per the applicant's understanding, on account of the fact that the products in question are used for a very specific purpose i.e. preparation 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....
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....ny general use. If the vitamins, pro vitamins are supplied in a form in which they are capable of general use, i.e. in the form in which it could be used as inputs or raw materials for further processing, instead of being ready to use, then these would be classifiable under heading 2936." 3.5 Considering the difference in views of the applicant's global desk, and the practice followed by the domestic Industry, the applicant has filed the present application to seek clarification on the classification of these products. 4. The applicant, in their CAAR-1 form, declared that they intend to import the impugned goods from the seaports of Nhava Sheva, Mumbai, Chennai and Kolkata and Air Cargo Complex, Mumbai. Their application, 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 dat....
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.... nature and proportions of which vary according to the animal production required. These substances are of three types : (1) Those which improve digestion and, more generally, ensure that the animal makes good use of the feeds and safeguard its health : vitamins or provitamins, amino-acids, antibiotics, coccidiostats, trace elements, emulsifiers, flavourings and appetisers, etc. (2) Those designed to preserve the feeding stuffs (particularly the fatty components) until consumption by the animal: stabilisers, anti-oxidants, etc. (3) Those which serve as carriers and which may consist either of one or more organic nutritive substances (manioc or soya flour or meal, middlings, yeast, various residues of the food industries, etc.) or of inorganic 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....
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.... vitamins, of provitamins or of concentrates, such as, for instance, natural concentrates of vitamins A and D in various proportions, to which an additional quantity of vitamin A or D has been added subsequently. (d) The above products diluted in any solvent (e.g., ethyloleate, propane-! ,2-diol, cthanediol, vegetable oils). The products of this heading may be stabilised for the purposes of preservation or transport: by adding anti-oxidants, by adding anti-caking agents (e.g., carbohydrates),by coating with appropriate substance (e.g., gelatin, waxes or tats), whether or not lasticised, or by adsorbing on appropriate substances (e.g., silicic acid). provided that the quantity added or the processing in no case exceeds that necessary for their preservation or transport and that the addition or processing does not alter the character of the basic product and render 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 compou....