TaxTMI 
TaxTMI 
2022 (7) TMI 1434
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....s for use in the manufacture of animal feed/supplements. The applicant intends to import the following products: Table: 1 Sr. No Product Name Composition Purpose, the form of import & manner of usage 1. Lucantin Red 10% Nxt Active ingredient- 10% canthaxanthin Inactive Ingredients: Organic substances-45%, Inorganic substances- 4%, antioxidants- 4%, preservatives -2%, others- 5% These are embedded in carbohydrates and gelatins, stabilized with butylhydroxytoluene Formulation: powder It has antioxidant properties and is a free radical scavenger It is used to pigment egg yolk and broiler shank Canthaxanthin has provitamin, a function in fish species 2. Lucantin Yellow 10% Nxt Active ingredient: 10% C-30 ester Inactive Ingredients: Organic substances-45%, Inorganic substances - 4%, antioxidants - 4%, preservatives -2% and others- 5% These are embedded in carbohydrates and gelatins, stabilized with butylhydroxytoluene Formulation: powder C-30 ester occurs in nature as a metabolic product of Apocarotenal, which can be extracted from grass, lucerne, green vegetables and citrus fruits. Pigmentat....
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....supplement for animals and not capable of any general use. The applicant also referred to circular No.188/22/95-CX. dated 26.03.1996 wherein the classification of animal feed supplements was clarified. According to the said circular, preparations containing active ingredients are classifiable under heading 2309. This circular also states that while deciding the classification of the products claimed to be animal feed supplements, it is necessary to ensure that the said animal feed supplements are ordinarily or commonly known in the trade as products for specific use in animal feeding. As per the applicant, heading 2309 read with HSN explanatory notes covers the preparations used in animal feeds- including products which contribute to the overall health of the animals and aid in the quality of eggs and other products produced by the animals. Therefore, these products can be classified under subheading 23099090 as 'Other'. The applicant also submitted a certificate issued by the German Government's certifying agency stating that these products are feed supplements and are of animal grade only along with test reports issued by Doctors Analytical Laboratories Pvt. Ltd. evid....
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....s 4% 3. Antioxidants 4% 4. Preservatives 2% 5. Others 5% Carriar material & improves the stability of the product Canthaxanthin can be used in feed for pigmentation of egg yolks, broiler skin, & fish. It has antioxidant properties & has provitamin A function. Lucantin Yellow 10% NXT Yes 10% C-30 ester 1. Organic substances 45% 2. Inorganic substances 4% 3. Antioxidants 4% 4. Preservatives 2% 5. Others 5% Carriar material & improves the stability of the product. C- 30 ester can be used in feed for pigmentation of egg yolks & broiler skin & has provitamin A function Lucantin pink Yes 10% Astaxanthin 1. Organic substances 45% 2. Inorganic substances 4% 3. Antioxidants 4% 4. Preservatives 2% 5. Others 5% Carriar material & improves the stability of the product. Astaxanthin stimulates immune function & increases the reproduction rate in fish. It is used as a feed additive to intensify the pigmentation of fish & crustaceans. The applicant submitted the manufacturing flowchart of Lucantin Red 10% NXT and Lucantin Yellow 10% NXT as below: 5. I have considered all the materials placed before me in respect of the s....
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....e event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, GR1s 2 through 6 may be applied in order. The relevant headings for classifications are reproduced below: 2309 Preparations Of A Kind Used In Animal Feeding 3204 Synthetic Organic Colouring Matter, Whether Or Not Chemically Defined; Preparations As Specified In Note 3 To This Chapter Based On Synthetic Organic Colouring Matter; Synthetic Organic Products Of A Kind Used As Fluorescent Brightening Agents Or As Luminophores, Whether Or Not Chemically Defined Note to Chapter 23 states that "Heading 2309 includes products of a kind used in animal feeding, not elsewhere specified or included, obtained by processing vegetable or animal materials to such an extent that they have lost the essential characteristics of the original material, other than vegetable waste, vegetable residues and by-products of such processing". This chapter note is inclusive in nature and it is clear that the heading covers other items and also includes products obtained by processing vegetable or animal material, not elsewhere specified or included. This vie....
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....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. 5.2.2 The impugned products are a combination of active ingredients and other ingredients such as antioxidants, minerals and stabilisers. The product composition is given in Table 4. These goods consist of active ingredients, preservatives, anti-oxidants and carriers. As per HSN explanatory notes, active ingredients (vitamins, pro vitamins, amino acids, etc) with a suitable carrier along with additives required for preservation and transport is a premix, which is added to the complete animal feed or supplementary animal feed. The Hon'ble Tribunal in Reckitt and Colman of India Ltd. vs. CCE - 1985 (22) ELT 216 (Tribunal) has held that to qualms as a preparation the said product should be prepared by addition, mixing or such other similar process to the original commodity in order to derive a new commodity. From the above, it is clear that the products under consideration are preparations, also known as premixes. 5.3 For the identity of the products,....
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....parations are of a kind used in animal feeding. It may however be noted that Heading 23.09 of the HSN excludes products of Chapter 29 and medicaments of Heading 30.03 or 30.04. Hence, while deciding the classification of the products claimed to be animal feed supplements, it may be necessary to ensure that the said animal feed supplements are ordinarily or commonly known to the trade as products for specific use in animal feeding." According to the Board, the preparation containing active ingredient preparations used for animal feeding is classifiable under heading 2309. The Board has also clarified that while deciding the classification of the products claimed to be animal feed supplements, it is necessary to ensure that the said animal feed supplements are ordinarily or commonly known in the trade as products for specific use in animal feeding. 5.3.2 Similar clarification was issued vis Board Circular No. 80/54/2018-GST, dated 31.12.2018. The relevant paras are reproduced below: "5.2 As per the HSN, 2309 inter-alia covers reading vita s and provitamins which improve digestion and, more generally, ensure that the animal makes good use of the feeds and safeguards its....
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....e notes particularly those under Heading 23.09 also throw light on the question that pre-mixes including those containing mineral substances and vitamins or provitamins, trace elements, appetisers, soya flour or meal, yeast, etc. are covered by it. We think that the test laid down by the Hon'ble Bombay High Court in the case of Chemical Fibres [1982 E.L.T. 917] is a safer and reliable test where the evidence of trade usage is not beyond doubt, then a reference to technical literature cannot be precluded. In regard to Niger Seed/Rice Bran extractions, we hold that they are animal feed." 5.3.4 The applicant has submitted that the impugned products are commonly known in the trade as products for specific use in animal feeding i.e. to manufacture animal feed. The safety data sheet provided by the manufacturer mentions the use of these products as feed additives. The manufacturer on their global website https://www.basEcomtglobal/en.htmlhas categorised these products as feed ingredients under animal nutrition products. A certificate issued by the German Government's certifying agency states that these products are feed supplements and are of animal grade. Further, test report....
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....thetic rubbers, plasticisers or other media. These dispersions are usually in the form of small plates or lumps and are used as raw materials for colouring rubber, plastics, etc., in the mass. (D) Mixtures of synthetic organic colouring matter with relatively large quantities of surface-active products, or with organic binders, which are used for colouring in the mass plastics, etc., or as ingredients in preparations for printing textiles. They are normally in the form of pastes. (E) Other preparations based on synthetic organic colouring matter of a kind are used for colouring any material or used as ingredients in the manufacture of colouring preparations. However, the preparations referred to in the last sentence of Note 3 to this Chapter are excluded The various types of synthetic organic colouring matter classified here (whether as dyes or pigments) include... (15) Carotenoids obtained by synthesis (e.g., fl-carotene, 8 '- apofi-carotenal, 8 '-apofi-carotenic acid, ethyl 8 '-apofi-carotenate, methyl 8 '-apoficarotenate and canthaxanthin)." It is to be noted that the active ingredient presents in the impugned goods, i.e., carotenoid....