TaxTMI 
TaxTMI 
2023 (2) TMI 675
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....dicine for humans. The global desk of the applicant has been classifying the product as organic acids under HS Code 29.15. However, as per the applicant's understanding, on account of the fact that the product in question is used for a very specific purpose, i.e., preparation of animal feed, classification under Heading 23.09 of the Customs Tariff as premix for animal feed is also a possibility and the domestic industry is also classifying similar products under the Heading 23.09 of the Tariff. Thus, considering the difference in views between the applicant's global desk and the practice followed by the domestic industry, the present application is preferred. The applicant intends to import the said goods through the entry points of seaports/airports at Nhava-Sheva, Mumbai (Air Cargo Complex), Chennai (preventive Commissionerate) and Kolkata. Accordingly, comments from the jurisdictional Principal Commissioners/Commissioners of Customs were invited. 2. The applicant has submitted that the end use would only be in animal feed preparations and are labelled, marketed and considered by the trade as intended for use only in preparation of animal feed. This fact has also been cla....
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....d appetisers, etc. (2) Those designed to preserve the feeding stuffs (particularly the fatty components) until consumption by the animal : - stabilisers, anti-oxidants, etc. (3) Those which serve as carriers and which may consist either of one or more organic nutritive substances (manioc or soya flour or meal, middlings, yeast, various residues of the food industries, etc.) or of inorganic substances (e.g., magnesite, chalk, kaolin, salt, phosphates). 3.2 Therefore, Luprosil salt, used to preserve the feeding stuffs, cannot be accepted as animal feed/premix unless mixed with other additives, organic matters, carriers etc. Reliance has also been placed on the landmark Supreme Court judgment in the case of Dilip Kumar [2018 (361) E.L.T. 577 (S.C.)] (https:// www.cbic.gov.in/resources//htdocs-cbec/iegaiaffairs/Dilip_Kumar&Co.pdf) wherein it has held that even if the items are used in animal feed (vitamin E in that case) they have to be classified as per the provisions of Indian Customs Tariff, chapter notes, HSN explanatory notes, headings etc. 4. Personal hearing was held on 1-6-2022 in virtual mode alo....
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....described preparations as "products which are made from separate components". The applicant has also submitted the manufacturing flow chart as below : 6. I have considered all the materials placed before me in respect of the subject product. I have gone through the submissions made by the applicant during the personal hearing. I proceed to pronounce my ruling on the basis of information available on record as well as information gathered from other reliable sources. The product, Luprosil salt is either calcium propionate or calcium di-propionate. The composition of Luprosil salt is almost 98% of calcium propionate, which is equivalent to approx. 77% propionic acid and approx. 21% calcium. As per the applicant, the product is used for a very specific purpose, i.e., preparation of animal feed, which merit classification under Heading 2309. However, Luprosil salt, a salt of propionic acid, finds specific entry under sub-heading 2915 50 00 - "Propionic acid, its salts and esters". Therefore, Heading 2915, which is adopted by the global desk of the applicant, is the competing classification entry. The relevant entries for classifications are reproduced below : 2309 Prep....
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....alth : vitamins or provitamins, amino acids, antibiotics, coccidiostats, trace elements, emulsifiers, flavourings and appetisers, etc. (2) Those designed to preserve the feeding stuff (particularly the fatty components) until consumption by the animal : stabilisers, anti-oxidants, etc. (3) Those which serve as carriers and which may consist either of one or more organic nutritive substances (manioc or soy flour or meal, middlings, yeast, various residues of the food industries, etc.) or of inorganic substances (e.g., magnesite, chalk, kaolin, salt, phosphates). The concentration of the substances described in (1) above and the nature of the carrier are determined so as to ensure, in particular, homogeneous dispersion and mixing of these substances in the compound feeds to which the preparations are added. Therefore, premixes are compound compositions consisting of a number of substances, which include nutrient, preservative and carrier substances. In the instant case, the product only contains preservative. It neither has nutrient additive or carrier additive. Further, the percentage of active ingredient,....
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.... the applicant, the product contains 98% of Calcium Propionate, a separately defined chemical compound. As per the manufacturing flowchart, it contains distilled propionic acid, a separately defined chemical compound. No other ingredient has been added to the said product. 6.4 HSN explanatory notes to Chapter 29 state that "Separate chemically defined compounds containing other substances deliberately added during or after their manufacture (including purification) are excluded from this Chapter ...The separate chemically defined compounds of this Chapter may contain impurities [Note 1(a)]...The term "impurities" applies exclusively to substances whose presence in the single chemical compound results solely and directly from the manufacturing process (including purification). These substances may result from any of the factors involved in the process and are principally the following : (a) Unconverted starting materials, (b) Impurities present in the starting materials, (c) Reagents used in the manufacturing process (including purification), (d) By-products. It should be noted, however, that such substances are not in all cases regarded as "impurities" permitted under Note ....
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...., in the case of CCE, Calcutta v. Alnoori Tobacco Products reported at 2004-TIOL-85-SC-CX = 2004 (170) E.L.T. 135 (S.C.), held that : "13. Circumstantial flexibility, one additional or different fact may make a world of difference between conclusions in two cases. Disposal of cases by blindly placing reliance on a decision is not proper. 14. The following words of Lord Denning in the matter of applying precedents have become locus classicus : "Each case depends on its own facts and a close similarity between one case and another is not enough because even a single significant detail may alter the entire aspect, in deciding such cases, one should avoid the temptation to decide cases (as said by Cordozo) by matching the colour of one case against the colour of another. To decide therefore, on which side of the line a case falls, the broad resemblance to another case is not at all decisive." "Precedent should be followed only so far as it marks the path of justice, but you must cut the dead wood and trim off the side branches else you will find yourself lost in thickets and branches. My plea is to keep the path to justice clear of obstruct....