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TMI Blog2022 (7) TMI 1434X X X X Extracts X X X X X X X X Extracts X X X X ..... feed/supplements. The applicant intends to import the following products: Table: 1 Sr. No Product Name Composition Purpose, the form of import & manner of usage 1. Lucantin Red 10% Nxt Active ingredient- 10% canthaxanthin Inactive Ingredients: Organic substances-45%, Inorganic substances- 4%, antioxidants- 4%, preservatives -2%, others- 5% These are embedded in carbohydrates and gelatins, stabilized with butylhydroxytoluene Formulation: powder It has antioxidant properties and is a free radical scavenger It is used to pigment egg yolk and broiler shank Canthaxanthin has provitamin, a function in fish species 2. Lucantin Yellow 10% Nxt Active ingredient: 10% C-30 ester Inactive Ingredients: Organic substances-45%, Inorganic substances - 4%, antioxidants - 4%, preservatives -2% and others- 5% These are embedded in carbohydrates and gelatins, stabilized with butylhydroxytoluene Formulation: powder C-30 ester occurs in nature as a metabolic product of Apocarotenal, which can be extracted from grass, lucerne, green vegetables and citrus fruits. Pigmentation of egg yolks and broiler skin is due to the yellow pigments consumed in the feed. This is used as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the classification of animal feed supplements was clarified. According to the said circular, preparations containing active ingredients are classifiable under heading 2309. This circular also states that while deciding the classification of the products claimed to be animal feed supplements, it is necessary to ensure that the said animal feed supplements are ordinarily or commonly known in the trade as products for specific use in animal feeding. As per the applicant, heading 2309 read with HSN explanatory notes covers the preparations used in animal feeds- including products which contribute to the overall health of the animals and aid in the quality of eggs and other products produced by the animals. Therefore, these products can be classified under subheading 23099090 as 'Other'. The applicant also submitted a certificate issued by the German Government's certifying agency stating that these products are feed supplements and are of animal grade only along with test reports issued by Doctors Analytical Laboratories Pvt. Ltd. evidencing the fact that the imported products are compound preparations for use in animal feed. They have also referred to the instructions issu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... egg yolks, broiler skin, & fish. It has antioxidant properties & has provitamin A function. Lucantin Yellow 10% NXT Yes 10% C-30 ester 1. Organic substances 45% 2. Inorganic substances 4% 3. Antioxidants 4% 4. Preservatives 2% 5. Others 5% Carriar material & improves the stability of the product. C- 30 ester can be used in feed for pigmentation of egg yolks & broiler skin & has provitamin A function Lucantin pink Yes 10% Astaxanthin 1. Organic substances 45% 2. Inorganic substances 4% 3. Antioxidants 4% 4. Preservatives 2% 5. Others 5% Carriar material & improves the stability of the product. Astaxanthin stimulates immune function & increases the reproduction rate in fish. It is used as a feed additive to intensify the pigmentation of fish & crustaceans. The applicant submitted the manufacturing flowchart of Lucantin Red 10% NXT and Lucantin Yellow 10% NXT as below: 5. I have considered all the materials placed before me in respect of the subject products/preparations. I have gone through the submissions made by the applicant during the personal hearing. No comments have been received from the jurisdictional commissioners. Therefore, I proceed to pronounce my r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sed In Animal Feeding 3204 Synthetic Organic Colouring Matter, Whether Or Not Chemically Defined; Preparations As Specified In Note 3 To This Chapter Based On Synthetic Organic Colouring Matter; Synthetic Organic Products Of A Kind Used As Fluorescent Brightening Agents Or As Luminophores, Whether Or Not Chemically Defined Note to Chapter 23 states that "Heading 2309 includes products of a kind used in animal feeding, not elsewhere specified or included, obtained by processing vegetable or animal materials to such an extent that they have lost the essential characteristics of the original material, other than vegetable waste, vegetable residues and by-products of such processing". This chapter note is inclusive in nature and it is clear that the heading covers other items and also includes products obtained by processing vegetable or animal material, not elsewhere specified or included. This view is supported by the Tetragon Chemie (P) Ltd. vs. Collector of C. Ex., Bangalore, wherein it was held that there is no limiting factor in the said chapter note so as to restrict its meaning. 5.2 The HSN explanatory notes to the heading 2309 the heading covers sweetened forage and prep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch as antioxidants, minerals and stabilisers. The product composition is given in Table 4. 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. vs. CCE - 1985 (22) ELT 216 (Tribunal) 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. 5.3 For the identity of the products, the applicant has declared in their application that they were for animal use. The applicant in their submissions has categorically mentioned that the impugned products are exclusively used in animal feed and have no other use; that the impugned products contain active ingredient preparations; and that the impugned product ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ily or commonly known to the trade as products for specific use in animal feeding." According to the Board, the preparation containing active ingredient preparations used for animal feeding is classifiable under heading 2309. The Board has also clarified that while deciding the classification of the products claimed to be animal feed supplements, it is necessary to ensure that the said animal feed supplements are ordinarily or commonly known in the trade as products for specific use in animal feeding. 5.3.2 Similar clarification was issued vis Board Circular No. 80/54/2018-GST, dated 31.12.2018. The relevant paras are reproduced below: "5.2 As per the HSN, 2309 inter-alia covers reading vita s and provitamins which improve digestion and, more generally, ensure that the animal makes good use of the feeds and safeguards its health. On the other hand, HS code 2936 coves vitamins and provitamins which are medicinal in nature and have a much higher concentration of an active substance. 5.5 ... Thus, HS code 2309 would cover only such products, which in the form supplied, are capable of specific use as food supplements for animals and not capable of any general use...." 5.3.3 I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er and reliable test where the evidence of trade usage is not beyond doubt, then a reference to technical literature cannot be precluded. In regard to Niger Seed/Rice Bran extractions, we hold that they are animal feed." 5.3.4 The applicant has submitted that the impugned products are commonly known in the trade as products for specific use in animal feeding i.e. to manufacture animal feed. The safety data sheet provided by the manufacturer mentions the use of these products as feed additives. The manufacturer on their global website https://www.basEcomtglobal/en.htmlhas categorised these products as feed ingredients under animal nutrition products. A certificate issued by the German Government's certifying agency states that these products are feed supplements and are of animal grade. Further, test reports issued by Doctors Analytical Laboratories Pvt. Ltd. specify that the impugned products are compound preparations for use in animal feed. Therefore, on the basis of trade parlance and the opinion of experts, it appears that the said products are used for animal feed. These products are not covered under the exclusion list provided in the HSN explanatory notes. In the light ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s for printing textiles. They are normally in the form of pastes. (E) Other preparations based on synthetic organic colouring matter of a kind are used for colouring any material or used as ingredients in the manufacture of colouring preparations. However, the preparations referred to in the last sentence of Note 3 to this Chapter are excluded The various types of synthetic organic colouring matter classified here (whether as dyes or pigments) include... (15) Carotenoids obtained by synthesis (e.g., fl-carotene, 8 '- apofi-carotenal, 8 '-apofi-carotenic acid, ethyl 8 '-apofi-carotenate, methyl 8 '-apoficarotenate and canthaxanthin)." 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 substanc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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