Fish meal exemption under customs notification upheld as aquatic feed or feed additive for additional duty relief

Imported fish meal was held to fall within Sl. No. 15 of Notification No. 20/2006-Cus. as aquatic feed or as additives for aquatic feed, so it qualified for exemption from additional duty under Section 3 of the Customs Tariff Act, 1975. The description in the notification was read broadly enough to cover fish meal, including where it was treated as an input for shrimp feed manufacture. Supporting HSN notes and related material also indicated that fish meal is used as animal feed, while the department produced no material to show that it was excluded from the notification.

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Issues: Whether imported fish meal was covered by Sl. No. 15 of Notification No. 20/2006-Cus. dated 01.03.2006 as aquatic feed or as additives for aquatic feed, so as to qualify for exemption from additional duty under Section 3 of the Customs Tariff Act, 1975.

Analysis: The description in the notification covered aquatic feed and also additives for such feed. The imported goods were admittedly falling under Chapter 23. Even on the department's case that the goods were an input for manufacture of shrimp feed, they could still fall within the expression "additives" used in the notification. On the assessee's later contention that the goods were directly usable as poultry and cattle feed, the material relied upon, including HSN notes and other references, supported the view that fish meal is used as animal feed. The department also failed to produce material to support its assertion that the goods were excluded from the notification.

Conclusion: The imported goods were eligible for the benefit of the notification. The appeal of the Revenue was liable to fail.

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