TaxTMI 
TaxTMI 
2025 (12) TMI 1260
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....e and produced and processed in large quantities. Its by-products such as wheat seed can be used to obtain value added products. Oil obtained from wheat seed is found to be a good source of various nutritionally beneficial constituents and carry important health benefits and functional properties. 2.3 The product is a valuable by-product from wheat grain which is a good source of important nutraceuticals such as a- and -tocopherol. Extraction of this oil from wheat seed is important for the effective utilization of its various potential nutraceuticals that have reported health benefits. 2.4 The composition of the product in question is as follows: Ingredient Composition Wheat extract 100% 2.5 Wheat seed oil contains phytoceramides and digalactosyl diglycerides (DGDG) which naturally helps with issues like dryness, wrinkles, etc. They help to restore the skin barrier and promote optimal hydration and plumpness. Reliance in this regard is placed on publication titled "A Functional Medicine Doctor's Guide To The Essential Supplements for Optimal Skin, Hair, And Nail Health".1 3.1 Form of import and use post import: a The product in question is impo....
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....tion of goods 1302 VEGETABLE SAPS AND EXTRACTS; PECTIC SUBSTANCES, PECTINATES AND PECTATES; AGAR- AGAR AND OTHER MUCILAGES AND THICKENERS, WHETHER OR NOT MODIFIED, DERIVED FROM VEGETABLE PRODUCTS - Vegetable saps and extracts: **** 130219 - Other --- Extracts: 13021911 --- of belladonna 13021912 --- of cascara sagrada 13021913 --- of nuxvomica 13021914 --- of ginseng (including powder) 13021915 --- of agarose 13021916 - of neem 13021917 --- of gymnema 13021918 --- of garacenia and cambodge 13021919 Other 6. It is evident on perusal of Heading 1302, that various extracts are covered therein. Further, HSN Explanatory Notes to Heading 1302 elaborates the scope of what is included and what is excluded from the Heading. The relevant extract of the same is as follows: (A) Vegetable saps and extracts. The heading covers vegetable saps (vegetable products usually obtained by natural exudation or incision) and extracts (vegetable products extracted from the original vegetable material by solvents), provided that they are not specified or included in more spe....
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....ions and exclusions of extracts under The heading further excludes the following vegetable products, classified under more specific headings of the Nomenclature : (a) Natural gums, resins, gum-resins and oleoresins (heading 13.01). (b) Malt extract (heading 19.01). (c) Extracts of coffee, tea or maté (heading 21.01). (d) Vegetable saps and extracts constituting alcoholic beverages (Chapter 22). (e) Tobacco extracts (heading 24.03). (f) Camphor (heading 29.14) and glycyrrhizin and glycyrrhizates (heading 29.38). (g) Extracts used as blood-grouping reagents (heading 38.22). (h) Tanning extracts (heading 32.01). (ij) Dyeing extracts (heading 32.03). (k) Natural rubber, balata, gutta-percha, guayule, chicle and similar natural gums (heading 40.01). Heading 1302: HEADING 1302 Inclusions Exclusions * Vegetable extracts from the original material by solvents, provided that they are not specified or included in one or more specific headings of the Nomenclature (see list of exclusions at the end of Part (A) of this Explanatory Note * Extracts when because of addi....
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....ource Definition https://dictionary.cambridge.org/dictionary/english/vegetable a plant that is used as food, or the part of a plant, such as a root, stem, or flower, that is used as food a plant, root, seed, or pod that is used as food, especially in dishes that are not sweet made or obtained from a plant, or growing in the form of a plant: vegetable matter/dye https://www.dictionary.com/browse/vegetable any plant whose fruit, seeds, roots, tubers, bulbs, stems, leaves, or flower parts are used as food, as the tomato, bean, beet, potato, onion, asparagus, spinach, or cauliflower. the edible part of such a plant, as the tuber of the potato. any member of the plant kingdom; plant. https://www.collinsdictionary.com/dictionary/english/vegetable Vegetable matter comes from plants. [formal] ... compounds, of animal, vegetable or mineral origin. ... decayed vegetable matter. 9. As evident from the above, the term vegetable refers to plants or parts of plants. 10. Further, Section II of the Customs Tariff is titled as "Vegetable Products". Relevant extract from the HSN Explanatory Notes is set out below: Section II VEGETABLE PRODUCTS ....
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.... compound classes to a degree that cannot be achieved solely by means of initial solvent extraction.' The same is evident from the manufacturing process. The product is used as a raw material for further manufacturing 17. As per the HSN Explanatory Notes to Heading 1302 (extracted above), vegetable extracts are generally raw materials for various manufactured products. 18. As mentioned above, the product in question serves as raw materials for further manufacturing of food and/or dietary supplements. 19. Thus, from the above it is evident that: a. The product is extracted from the original /vegetable source by solvent i.e., Ethanol, and the same are not excluded from the list of exclusions at the end of Part (A) of the Explanatory Note, b. The extract is a simple extract, not subject to any further extraction or purification. c. The product is a raw material for various manufactured products and is not a finished product itself. UK Rulings and US Cross Rulings in respect of classification of extracts of plants 20. The issue on classification of 'plant extracts' has been analyzed by other countries such as the UK and USA as we....
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....t 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 25. From a perusal of the above, the Applicant understand that supplements for general well-being are covered under Heading 21.06. It is submitted that the product is akin to the food and dietary supplements above mentioned and its purpose is to maintain the general well-being of the consumer. Further, the product has various benefits, it is especially high in ceramides. Ceramides play a key role in barrier function for the skin and the hair. 26 Port of Import and reply from jurisdictional Commissionerate: Comments were received from the jurisdictional Commissionerate Viz. Principal Commissioner of Customs (Import), Air ....
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....at the heading applies only to simple extracts of vegetable origin which have not been mixed or compounded, and which retain the character of raw plant material. The relevant portion of Explanatory Notes is as below: "The vegetable saps and extracts of this heading are generally raw materials for various manufactured products. They are excluded from the heading when, because of the addition of other substances, they have the character of food preparations, medicaments, etc." The same Note further provides that the heading excludes: 1. "Vegetable extracts mixed or compounded for therapeutic or prophylactic purposes" (classifiable under Chapter 30); 2. "Extracts which, because of addition of other substances, have the character of food preparations or medicaments" (classifiable under Chapter 21 or 30); and 3. Extracts subjected to purification processes as quoted above. In the present case, the applicant's own literature and FSSAI licence confirm that Ceramosides^TM is standardized, fractionated, and intended as an ingredient in nutraceuticals or dietary supplements to promote skin hydration, reduce wrinkles, and strengthen ha....
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.... in skin hydration, reduction of wrinkles, and enhancement of hair growth. These are physiological or cosmetic claims relating to human well-being and appearance, rather than industrial or technical applications. Consequently, the product's intended end-use corresponds more closely with food supplement preparations classifiable under Chapter 21 of the Customs Tariff, rather than with crude vegetable extracts of Chapter 13. Further, the brochure indicates that: 1. the product is marketed in retail-type packs of 5 kilograms each, suggesting that it is supplied in a ready-to-use standardized form rather than as a bulk raw extract. 2. the recommended daily dosage of the product is specifically mentioned, implying that the preparation is designed for controlled oral consumption in nutraceutical formulations. From the above, it can be concluded that the borderline between crude vegetable extracts (Chapter 13), edible food or dietary preparations (Chapter 21), and medicinal or cosmetic preparations (Chapter 30) depends not merely on the product's origin but on its actual composition, degree of processing, form of presentation, dosage, and declared end-us....
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.... 27. Details of Personal Hearing: - Personal hearing was held on 26.11.2025 at 12:30 PM, Ms. Srinidhi Ganeshan Advocate appeared online for Personal Hearing on 26.11.2025 in the matter. She reiterated the contention filed with the application. She submitted that the subject goods are Pure Wheat Extract-100% and merit classification under ceramosides oil under CTH 1302. She submitted that the said product is used as dietary supplements/Active Ingredients and is to be imported in liquid form, it is to be used for Skin and Hair benefits. The daily dose reflated in the literature 30mg powder or 70mg oil per day. It was specifically asked as how the oil is extracted from the wheat and what is the details of production mechanism. She sought some time to provide the same. It was also asked in what condition/state the production to be imported i.c. in bulk liquid or in pouch or in bulk powder or in a small packet and whether these products can be directly taken or otherwise. She alternatively sought that if the product does not merit classification under CTH 1302, it may fall under CTH 2106. No body appeared for Personal Hearing on behalf of department. 28. Further, the applicant ....
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....r Notes. I proceed to examine these issued sequentially. 32. Based upon the literature/ information provided by the applicant, I find that subject goods i.c. Wheat Seed Oil- Ceramosides is derived from wheat seed/ wheat flour, which contains bioactive lipids such as phytoceramides and digalactosyl diglycerides (DGDG). These components are claimed to have various health benefits, particularly for skin and hair health. The product is a vegetable extract derived from wheat seed vide solvent driven extraction process in the presence of 75-80% Ethanol at 40-70ºc temperature in steel tank for specified time. Then the resulting product is further undergone liquid fraction /filtration, then evaporation and concentration process and then the final product is emerged in form of Ceramosides(tm). The product helps improving skin hydration, reducing wrinkles, preserving the collagen network, and promoting hair growth and density. As claimed by the applicant, the product has to be used as an intermediate ingredient in finished formulations such as tablets, capsules, and powders. It has to be imported under the FSSAI license as a functional ingredient under Category 99.7. The pro....
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....upplement. 35. Analysis under Heading 2106 HSN Note 2106 includes: (16) Preparations referred to as food supplements consisting of or based on extracts or isolates of substances found in foods, put up as supplements to the normal diet. The product's functional characteristics dosage recommendation, structured concentration, nutraceutical end-use align squarely with the above description. As per the literature, it further lacks therapeutic or prophylactic claims required for classification under Chapters 30 or 33. The product is used solely as a functional ingredient in nutraceutical formulations, not as a raw plant extract in industrial or non-food applications. Relevant extract of Heading 2106 from the Customs Tariff is as under: Tariff Item Description 2106 FOOD PREPARATIONS NOT ELSEWHERE SPECIFIED OR INCLUDED 21061000 - Protein concentrates and textured protein substances 210690 - Other 21069099 - Other This product "Wheat Seed Oil - Ceramosides ^TM" is not a crude or simple vegetable extract under Heading 1302. It is a standardized, functional, nutraceutical ingredient, intended for oral consumption throug....