Tribunal rules on imported goods classification dispute

The Tribunal ruled in favor of the appellants in a case involving the classification of imported goods as "Thiamine Mono (concentrate extract for animal feed)." The dispute centered on whether the goods should be classified under SH 2936.22 as Vitamin B1 or SH 2309.90 as "preparations of a kind used in animal feeding." The Tribunal found that the evidence, including supplier description and chemical analysis, supported the goods being intended for animal feed, leading to classification under SH 2309.90. The Commissioner's order was set aside, and the appeal was allowed based on a previous apex court decision supporting the appellants' position.

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Issues:
Classification of imported goods under SH 2309.90 or SH 2936.22 of the CTA Schedule.

Analysis:
The appellants imported goods described as "Thiamine Mono (concentrate extract for animal feed)" without an import license. The assessing authority believed the goods should be classified under SH 2936.22 and ITC EXIM Code 2936 2200 10, requiring a specific import license. The Commissioner of Customs classified the goods as "Thiamine mononitrate (Vitamin B1)" under SH 2936.22, leading to confiscation under Section 111(d) of the Customs Act. The Commissioner imposed a redemption fine for each Bill of Entry. The dispute centered on the classification of the goods imported by the appellants, with the department favoring SH 2936.22 as Vitamin B1 and the appellants arguing for SH 2309.90 as "preparations of a kind used in animal feeding."

The party claimed the goods were for animal feed based on the supplier's description, "Thiamine Mono (animal feed grade)," and the "Certificate of Analysis" showing a high vitamin content. The Chemical Examiner's report confirmed the presence of Thiamine mononitrate and additives, suggesting the goods were a mixture rather than solely Vitamin B1. The Chemical Examiner's inability to determine the actual use of the goods was noted, and the Customs authorities did not investigate further. The evidentiary materials supported the importer's claim that the goods were intended for animal feed, making classification under SH 2309.90 appropriate. The Chemical Examiner's report indicated the goods did not fall under SH 2936.22, which covers only pure organic chemicals.

Referring to a previous apex court decision involving a similar dispute over animal feed classification, the Tribunal found in favor of the appellants. Citing the apex court's decision, the Tribunal set aside the Commissioner's order and allowed the appeal.

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