Animal feed classification: synthetic Choline Chloride remains under Chapter 23 despite its chemical identity as a quaternary ammonium salt.

Choline Chloride was treated as classifiable under Tariff sub-heading 2302.00 as a preparation of a kind used in animal feeding, rather than under Chapter 29 as a quaternary ammonium salt. The controlling factor was the scope of Chapter 23 and its chapter note, which was read to cover animal-feeding preparations even if they are synthetic in origin. Applying the prior Larger Bench interpretation, the product's synthetic character did not exclude it from Chapter 23, and classification under Chapter 29 was rejected. The lower authority's classification was set aside.

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Issues: Classification of Choline Chloride, whether under Tariff sub-heading 2302.00 as a preparation of a kind used in animal feeding or under Chapter heading 29.23 as a quaternary ammonium salt.

Analysis: The product was claimed to fall under Chapter 23 as animal feed. The competing view was that its chemical identity as a quaternary ammonium salt placed it under Chapter 29. The decisive factor was the scope of Chapter 23 and its chapter note, which had been interpreted to include preparations used in animal feeding even where they contain synthetic material. The prior Larger Bench ruling supporting that interpretation was applied, and the synthetic origin of the product was held not to exclude it from Chapter 23.

Conclusion: The product was held classifiable under Tariff sub-heading 2302.00 and not under Chapter heading 29.23, in favour of the assessee.

Final Conclusion: The classification adopted by the lower authority was set aside and the appeal was allowed on the basis that the product is covered by Chapter 23 as an animal feed preparation.

Ratio Decidendi: A preparation used as animal feed does not cease to fall under Chapter 23 merely because it is synthetic, where the chapter note extends the heading to such preparations by inclusive language.

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