AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2025 (12) TMI 1018
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....ibers, Amino Acids and Improver systems falling under various Chapters of the Customs Tariff Act, 1975 and are registered as per the GST laws. The applicant submitted that they have an extensive portfolio of products which finds use in bakery, confectionary, culinary, dairy, fruit products and nutraceutical, among other industries. They intend to import MINERAL CONCENTRATE (with Calcium phosphates) (brand name VITALARMOR CA M10) through the sea port at Nhava Sheva Group-1 (NS-01), Mumbai. 2.2 The applicant submitted that VITALARMOR CA M10 is a form of MINERAL CONCENTRATE (with Calcium phosphates) which serves as dietary supplements and nutraceuticals targeting bone health. MINERAL CONCENTRATE (with Calcium phosphates) is a type of protein that is derived from filtered milk and is formed from whey and casein proteins. 2.3 The applicant submitted that the MINERAL CONCENTRATE (with Calcium phosphates) is a key ingredient in following forms: * Nutraceuticals & Supplements: MINERAL CONCENTRATE (with Calcium phosphates) powder is ideal for manufacturers of dietary supplements and nutraceuticals targeting bone health. Its bioidentical structure and enhanced bioavailability ....
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....ity and the most studied activity, the angiotensin-converting enzyme (ACE)-inhibitory activity, given the fact that lacto globulin is easily isolated from whey, this makes lacto globulin an interesting substrate for the production of peptides with vast potential of health benefits. 2.7 PREPARATION PROCESS OF MINERAL CONCENTRATE (with Calcium phosphates): Acid whey is heated to 72 degrees Celsius for minimum 15 seconds and then subjected to precipitation and then separated, cooled and stored for a period of few hours. It is converted to fine powder and passed through sieves to collect 1.4 mm size fines. This powder is packaged and then distributed to other sub-contractors for further re-packaging in smaller volumes. 2.8 Calcium is a major component of the milk that has shown antihypertensive activity. It has been reported that calcium, potassium and magnesium have an independent effect on blood pressure when fermented milk was consumed and that these minerals intensified the antihypertensive effects of IPP and VPP. Gonzalez-Gonzalez et al. investigated the effect of ionic calcium concentration on ACE activity which showed an activation of ACE (130%) at concentration between 0.....
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....ES) Subject to the exclusions mentioned in the introduction to this sub-Chapter, this heading includes phosphinates (hypophosphites), metal salts of phosphinic (hypophosphorous) acid (H3PO2) (heading 28.11). These are soluble in water and decompose on heating with evolution of hydrogen phosphide which ignites spontaneously. Alkali phosphinates are reducing agents. The most important are : (I) Sodium phosphinate (hypophosphite) (NaPH2Oz), in white tablets or crystalline powder, hygroscopic. (II) Calcium phosphinate (hypophosphite) (Ca(PH202)2), colourless crystals or a white powder (obtained by the action of white phosphorus on boiling milk of lime). Both these products are used in medicine as tonics or restoratives. (III) Ammonium, iron or lead phosphinates (hypophosphites). (B) PHOSPHONATES (PHOSPHITES) Subject to the exclusions mentioned in the introduction to this sub-Chapter, this heading includes phosphonates (phosphites), metal salts (neutral or acid) of phosphonic (phosphorous) acid (H3PO3) (heading 28.11). The most important phosphonates are those of ammonium, sodium, potassium or calcium, s....
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....g, etc. (b) Disodium hydrogenorthophosphate (dibasic phosphate) (Na2HPO4), anhydrous (white powder) or crystallised (with 2, 7 or 12 H2O). Soluble in water. Used as a size for silk (with tin chloride), for fire-proofing fabrics, wood or paper, as a textile mordant, in chrome-tanning, in the manufacture of optical glass, for glazing porcelain, in the preparation of baking powder, in the manufacture of colouring matters and soldering fluxes, in electro-plating, in medicine, etc. (c) Trisodium orthophosphate (tribasic phosphate) (Na3PO4.12H2O). Colourless crystals. soluble in water, releasing part of their water of crystallisation on warming. Used as a flux for dissolving metal oxides, in photography, as a detergent, for softening industrial water and descaling boilers, to clarify sugar and spirits, in tanning, in medicine, etc. (d) Sodium pyrophosphates (sodium diphosphates). Tetrasodium pyrophosphate (neutral diphosphate) (Na.P2O7). Non-hygroscopic white powder, soluble in water. Used in laundering, in the preparation of detergents, of mixtures to prevent the coagulation of blood, of refrigerating products and of disinfectants, in cheese manufacture, etc. ....
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....nly calcium phosphate soluble in water. Used in the preparation of baking powders, as a medicament, etc. (c) Tricalcium bis(orthophosphate) (neutral calcium phosphate) (Ca;(PO4)2). The heading covers precipitated calcium phosphate (i.c., ordinary calcium phosphate). Obtained by treating the tricalcium phosphate contained in bones, first with hydrochloric acid and then with sodium hydroxide, or by precipitating a solution of trisodium orthophosphate by means of calcium chloride in presence of ammonia. Amorphous white powder, odourless and insoluble in water. Used as a mordant in dyeing; to clarify syrups; for pickling metals; in the manufacture of glass or pottery; in the preparation of phosphorus and medicaments (e.g., lacto-phosphates, glycerophosphates), etc. Natural calcium phosphate is excluded (heading 25.10). (5) Aluminium phosphate. Artificial aluminium orthophosphate (AlPO4), prepared from trisodium orthophosphate and aluminium sulphate, occurs as a white, greyish or pinkish powder. Used as a flux in ceramics, for sizing silk (with tin oxide), and in the preparation of dental cements. Natural aluminium phosphate (wavellite) is excluded (h....
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.... Integrated Goods and Services Tax (IGST) 18% 2835 25 00 Agriculture Infrastructure and Development Cess (AIDC) 0.00% 4. Port of Import and reply from Jurisdictional Commissionerate 4.1 The applicant in their CAAR-1 indicated that they intend to import the subject goods i.e. "Mineral Concentrate (with Calcium phosphates) having Brand Name VITALARMOR CA M10" at the jurisdiction of office of the Pr. Commissioner of Customs, NS-I, JNCH, Nhava Sheva, Tal: Uran Distt: Raigad, Maharashtra-400707. In terms of Provisions of the Section 28-I(1) of the Customs Act, 1962 read with the Sub-regulation No. (7) of the Regulation No. 8 of the Customs Authority for Advance Rulings Regulations, 2021, the application was forwarded to the office of the Principal Commissioner of Customs, NS-V, JNCH, Nhava Sheva, Tal: Uran Distt: Raigad, Maharashtra- 400707 on 24.03.2025 as indicated by the applicant at Sr. No. 13 of their CAAR-1 Forms calling upon them to furnish the relevant records with comments, if any, in respect of the said application. Further reminders were also sent on 28.04.2025, 14.05.2025 and 09.06.2025 to the concerned jurisdictional Commissionerate's. However, no reply t....
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....ed as subject goods). The applicant submitted that the subject goods are versatile nutrient supplement premix designed to support bone health. It is a fine, white to off-white powder with a slightly hygroscopic nature, ensuring optimal absorption and utilization and having 10-micron size. The applicant further submitted that the starting ingredient in the manufacture of MINERAL CONCENTRATE (with Calcium phosphates) powder is acid whey. The applicant further submitted that this powder has high nutritional values and can be consumed by mixing with water/milk or can also be consumed with health drinks. Technical and factual understanding 6.4.1 Further, the technical data sheet submitted by the applicant describes the subject goods i.e. Mineral Concentrate (having brand name VitalArmor Ca M10) as Minerals Concentrate rich in milk calcium with suggested uses in nutritional reformulation, specifically the calcium fortification in dairy products (yoghurts, drinking yoghurts, cheese), biscuits and ice creams. 6.4.2 To further understand the subject goods, the website of the manufacturer Armor Proteines (S.A., France) (Home Page - Armor Protéines (https://www.armor-proteines....
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....he product is obtained from acid whey through precipitation, separation, spray-drying, sieving, and micronisation, resulting in a milk-mineral powder containing ~27 % Ca, 13 % P, and minor Mg, Na, K - not a protein concentrates or pure chemical compound. 6.5 Before deciding on the issue, let me deliberate on the legal framework prescribed in Customs Tariff Act, 1975, Chapter/Section notes along with HSN explanatory notes. Classification of goods in the Harmonized System of Nomenclature (HSN) is governed by the General Rules for the interpretations. Rule 1 of the General Rules for the Interpretation of the Import Tariff to the Customs Tariff Act, 1975 stipulate that for legal purposes, the classification of the import item shall be determined according to the terms of the headings and any relative Section or Chapter Notes. 6.6 The applicant has sought to classify these items under the heading 2835 which covers "Phosphinates (Hypophosphites), Phosphonates (Phosphites) and Phosphates; Polyphosphates, Whether or Not Chemically Defined" and more specifically under Tariff Item 2835 25 00 "Calcium hydrogenorthophosphate ("dicalcium phosphate")". The relevant excerpts of the heading ....
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.... and it is therefore said to be stoichiometric. Small deviations in the stoichiometric ratios can occur because of gaps or insertions in the crystal lattice. These compounds are described as quasi-stoichiometric and are permitted as separate chemically defined compounds provided that the deviations have not been intentionally created. 6.6.4 The HSN Explanatory notes stipulates two conditions for a substance to be classified as a separate chemically defined compound: one, its composition is defined by a constant ratio of elements and another, it can be represented by a definitive structural diagram. 6.6.5 Further, the HSN Explanatory Notes for Chapter 28 contains a list of products which remain classified in Chapter 28, even when they are not separate chemical elements nor separate chemically defined compounds, the relevant excerpts are as under: (C) Products which remain classified in Chapter 28, even when they are not separate chemical elements nor separate chemically defined compounds. There are certain exceptions to the rule that this Chapter is limited to separate chemical elements and separate chemically defined compounds. These exceptions incl....
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....ned compound in terms of Note 1 to Chapter 28 for classification under Heading 2835. 6.6.7 The subject goods are a Milk Mineral Concentrate which is a precipitate of acid whey containing 27% calcium, 13% phosphorus, as well as magnesium, sodium and potassium, and are not a separate chemical element or a separate chemically defined compound and therefore, by virtue of Note 1 to Chapter 28, are not classifiable under Heading 2835. 6.7 Since the subject goods are made using acid whey and are used as nutritional supplements, these can be classified under CTH 0404 "Whey, whether or not concentrated or containing added sugar or other sweetening matter; products consisting of natural milk constituents, whether or not containing added sugar or other sweetening matter, not elsewhere specified or included' or CTH 2106 "food preparations not elsewhere specified or included'. Before deciding the correct classification of the subject goods, it is important to understand the scope of both the headings and relevant Chapter Notes, HSN Explanatory Notes etc. 6.8 CTH 0404 - Relevant Heading Notes, Sub-heading Note 1 and HSN Explanatory Notes for Heading 0404 are as under: *....
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.....06). (c) Products obtained from whey, containing by weight more than 95 % lactose, expressed as anhydrous lactose, calculated on the dry matter (heading 17.02). (d) Food preparations based on natural milk constituents but containing other substances not allowed in the products of this Chapter (in particular, heading 19.01). (e) Albumins (including concentrates of two or more whey proteins, containing by weight more than 80 % whey proteins, calculated on the dry matter) (heading 35.02) or globulins (heading 35.04). From the above chapter notes, sub-heading notes and HSN Explanatory Notes for heading 0404, it emerges that this heading covers whey and modified whey products, as well as other milk-derived constituents in liquid, paste, powder, or frozen form, provided they remain essentially milk components and are not more specifically classified elsewhere. The subject goods would not be classified here, because milk mineral concentrates are separated mineral fractions from the acid whey rather than whey or modified whey. The subject goods i.e. VitalArmor(r) Ca M10 is a milk mineral concentrate, obtained by precipitating and micronizing ca....
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.... preparations, whether or not sweetened. ....... (16) Preparations, often referred to as food supplements or dietary supplements, consisting of, or based on, one or more vitamins, minerals, amino acids, concentrates, extracts, isolates or the like of substances found within foods, or synthetic versions of such substances, put up as a supplement to the normal diet. It includes such products whether or not also containing sweeteners, colours, flavours, odoriferous substances, carriers, fillers, stabilisers or other technical aids. Such products are often put up in packaging with indications that they maintain general health or well-being, improve athletic performance, prevent possible nutritional deficiencies or correct sub-optimal levels of nutrients. These preparations do not contain a sufficient quantity of active ingredients to provide therapeutic or prophylactic effect against diseases or ailments other than the relevant nutritional deficiencies. Other preparations with a sufficient quantity of active ingredient to provide a therapeutic or prophylactic effect against a specific disease or ailment are excluded (heading 30.03 or 30.04). From the above....
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....o food preparation. Further, the entry (16) of the HSN Explanatory Notes for heading 2106 clearly states that food or dietary supplements consisting of one or more vitamins, minerals, concentrates, extracts or isolates are covered under heading 2106 and more specifically under Tariff Item 2106 90 99 : Food preparations not elsewhere specified or included : Other : Other : Other. The relevant excerpts of Heading 2106 are as under: Tariff Item Description 2106 Food preparations not elsewhere specified or included 2106 10 00 - Protein concentrates and textured protein substances 2106 90 - Other:: -- Soft drink concentrates 2106 90 11 Sharbat 2106 90 19 - Other 2106 90 20 Pan masala 2106 90 30 --- Betel nut product known as "Supari" 2106 90 40 --- Sugar-syrups containing added flavouring or colouring matter, not elsewhere specified or included; lactose syrup; glucose syrup and malto dextrine syrup 2106 90 50 --- Compound preparations for making kg. 150% non-alcoholic beverages 2106 90 60 --- Food flavouring material 2106 90 70 --- Churna for pan 2106 90 80 -- - Custard powder - Other....