2025 (3) TMI 585 - AT - Customs

Squid Liver Powder classified under CTH 2309 90 90 not CTH 2301 20 11 under Customs Tariff Act

M/s. Avanti Feeds Limited Versus Commissioner of Customs (Import) Custom House, Chennai

M/s. Avanti Feeds Limited Versus Commissioner of Customs (Import) Custom House, Chennai - TMI 1. ISSUES PRESENTED and CONSIDEREDThe Tribunal considered the following core legal questions:(A) Whether the hearing and decision in the present appeal should be kept pending until the resolution of a related case before the High Court of Madras.(B) Whether the imported product, Squid Liver Powder, should be classified under Customs Tariff Heading (CTH) 2301 20 11 as claimed by the appellant.(C) Whether the imported product falls under CTH 2309 90 90 as determined by the Revenue.(D) Whether the classification of the goods should be determined by the essential character of the mixture under Rule 3(b) of the General Rules of Interpretation of the Tariff (GRI).2. ISSUE-WISE DETAILED ANALYSIS(A) Request to keep the hearing and decision pendingThe Tribunal referred to the Supreme Court's decision in UNION TERRITORY OF LADAKH & ORS. Vs JAMMU AND KASHMIR NATIONAL CONFERENCE & ANR, which established that courts should decide matters based on the current law and not await outcomes from other pending cases unless specifically directed by the Apex Court. Thus, the Tribunal proceeded with the case, finding it advantageous for the appellant to address the additional point of law raised.(B) Classification under CTH 2301 20 11The appellant argued that Squid Liver Powder should be classified under CTH 2301 20 11, which covers flours, meals, and pellets of fish or crustaceans, molluscs, or other aquatic invertebrates. The Tribunal examined the Customs Tariff and noted that CTH 2301 20 11 does not cover products containing plant-origin ingredients. Since Squid Liver Powder contains both animal and plant-origin ingredients, it does not fall under this heading.(C) Classification under CTH 2309 90 90The Tribunal considered whether Squid Liver Powder should be classified under CTH 2309 90 90, which includes preparations used in animal feeding. The Tribunal noted that CTH 2309 covers products used in animal feeding, including feed ingredients that are not end products themselves. Squid Liver Powder, being a preparation used for aqua feed and animal diets, fits this classification. The Tribunal also referenced the Harmonized System Nomenclature (HSN) to support this interpretation.(D) Application of Rule 3(b) of GRIThe appellant contended that the classification should be based on the essential character of the mixture under Rule 3(b) of GRI. The Tribunal found that Rule 3(b) applies only if classification under Rule 1 and 2 is ambiguous, which was not the case here. The classification under CTH 2309 was clear based on the Customs Tariff and HSN, making the application of Rule 3(b) unnecessary.3. SIGNIFICANT HOLDINGSThe Tribunal upheld the classification of Squid Liver Powder under CTH 2309 90 90, aligning with previous decisions and the HSN. The Tribunal emphasized that products used in animal feeding, including feed ingredients, fall under this heading. The Tribunal rejected the appellant's arguments regarding the application of Rule 3(b) and the need to wait for the High Court's decision, citing legal precedents that support proceeding with the current law.The Tribunal also addressed the appellant's reliance on previous classification practices and test reports, stating that wrong classifications cannot be perpetuated, and test reports not provided at the Show Cause Notice stage cannot be relied upon. The Tribunal found that the Revenue had effectively demonstrated the correct classification under CTH 2309.Ultimately, the Tribunal rejected the appeal, affirming the classification under CTH 2309 90 90, and upheld the orders of the lower authorities.