Animal feed classification: squid liver powder with plant ingredients falls under Heading 2309, not aquatic invertebrate meal.

Squid liver powder containing squid-derived material, soyabean meal and minor additives was treated as a preparation used in animal feeding under Heading 2309, rather than as flour, meal or pellet of aquatic invertebrates under Heading 2301. Heading 2301 was read as covering products obtained from the relevant animal material, while the inclusion of plant-origin ingredients took the goods outside that heading. Heading 2309 was applied broadly to feed preparations and ingredients used in complete or supplementary animal feeds. Prior practice, an earlier mistaken classification and an unserved test report did not prevent correction of the tariff classification.

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Issues: Whether squid liver powder, consisting of animal-origin and plant-origin ingredients, was classifiable under Heading 2301 as flour, meal or pellet of aquatic invertebrates, or under Heading 2309 as preparations of a kind used in animal feeding.

Analysis: The disputed goods were found to contain two principal ingredients, one derived from squid and the other from soyabean meal, with minor additives. Heading 2301 was held to cover flours, meals and pellets obtained from the relevant animal material, and the presence of plant-origin ingredients took the product outside that heading. Heading 2309 was interpreted broadly to include products used in animal feeding, including preparations used in making complete or supplementary feeds, and not only end products capable of direct feeding. On the facts, squid liver powder was treated as a preparation used in animal feeding, and the argument based on Rule 3(b) of the interpretation rules was held unnecessary because classification was possible on a plain reading of the tariff and the HSN notes. Prior assessment practice and earlier erroneous classification were held not to bar correction of the classification, and the disputed test report was disregarded for want of supply at the relevant stage.

Conclusion: The goods were correctly classifiable under Heading 2309 and not under Heading 2301.

Final Conclusion: The tariff classification adopted by the department was upheld, and the appeals failed.

Ratio Decidendi: A product made from animal and plant materials, if used as a feed ingredient or preparation in animal feeding, may fall under Heading 2309 even though it is not itself a complete feed and even though earlier practice suggested a different classification.

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