TaxTMI 
TaxTMI 
2025 (12) TMI 1563
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....incorporated under Indian law, with its registered office located at Gat No. 47, Datta Nagar, Lonikad, Pune, Maharashtra, Pin-412216, submitted that it is engaged in the import and sale of feed for various categories of pets including dogs, cats, birds, small animals, aquatics, and reptiles. These feeds, imported in bulk, are primarily in the form of pellets and liquids tailored to the nutritional needs of different pet categories based on their age and size. The Applicant holds a valid Importer-Exporter Code (IEC) bearing number AACCO9100C, a copy of which was enclosed as Exhibit-1. 2.2 The present application had been filed by the Applicant seeking an advance ruling on the classification of dog and cat feed imported in bulk packages/bags and the applicable rate of customs duty on the same. 2.3 It was stated that the products imported by the Applicant are designed with varying combinations of components such as dehydrated chicken, white rice, maize, peas, brown rice, dried beet pulp, coconut oil, and dried ginger, among others. The Applicant clarified that the proportions of these components differ depending on the breed, age, and size of the pet for which the feed is intend....
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....n support of past transactions were submitted as Exhibit-3. 2.8 Accordingly, the Applicant has sought an advance ruling on the question of whether the pet feed imported in bulk packages should be classified under CTH 23099010 of the First Schedule to the Customs Tariff Act, 1975, and what rate of customs duty would apply. 2.9 As for the Applicant's eligibility to seek the ruling, it was noted that Section 28E(c)(i) of the Customs Act defines "Applicant" to include anyone holding a valid IEC, which the Applicant satisfies. Additionally, the application pertains to the classification of goods-a question expressly permissible under Section 28H(2)(a) of the Act. It was submitted that the matter was not pending before any officer, Tribunal, or Court, and hence, the application is admissible under the provisions of Section 28-1(2)(a) of the Customs Act. 2.10 In interpreting the classification of goods, the Applicant submitted that classifications under the Customs Tariff Act are governed by the General Rules of Interpretation and the Harmonized System of Nomenclature (HSN) as per WCO guidelines. In light of this, it was contended that the goods in question fall under Heading....
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....would be under CTH 23099010, as their products clearly fall within the scope of "compounded animal feed", and CTH 23099010 is a more specific heading compared to the residuary 23099090. 2.17 Therefore, it was submitted that the Applicant's products, being nutritionally complete, imported in bulk, and repackaged for retail sale under a separate brand, merit classification under CTH 23099010 and are liable to Basic Customs Duty at the rate of 15%. 3. Comments from the jurisdictional Commissionerate. 3.1 The jurisdictional Commissionerate submitted its observations in response to the application for advance ruling dated 31.01.2025 filed by M/s. Orange Pet Nutrition Private Limited (hereinafter referred to as "the Importer"). The comments were offered as per the requisition made by the Customs Authority for Advance Rulings via email dated 04.02.2025, seeking the field formation's views under Section 28-1(1) of the Customs Act, 1962 read with Regulation 8(7) of the CAAR Regulations, 2021. 3.2 Upon detailed examination, the jurisdictional Commissionerate expressed the view that the correct classification of the goods should be under CTH 2309.10.00, not under CTH 2309.....
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....ased on intent and end-use is critical to safeguard revenue. 3.8 The Commissionerate also cautioned that the Importer's strategy raised genuine concerns of duty evasion, given the disparity between the applicable BCD rates-20% under 2309.10.00 and 15% under 2309.90.90. It was argued that such practices, if permitted, would undermine revenue and contravene the statutory framework of customs classification. 3.9 In conclusion, the Commissionerate recommended denial of the Importer's request for classification under CTH 2309.90.90. It was asserted that classification under CTH 2309.10.00 was correct, appropriate, and consistent with the legislative intent, judicial interpretation, and the imperative of preventing revenue leakage. 4 The Applicant further submitted a rejoinder in response to the comments filed by the jurisdictional customs authorities (JNCH) on its application for advance ruling. The Applicant contended that it was not in dispute that the imported goods consisted of pet food for dogs and cats, and that such goods were imported in bulk packaging without retail labelling such as MRP, expiry date, or batch number. Post-import, the goods were repackaged into....
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....tlon India Ltd. [2000 (121) ELT 675] * Tata Hydro Electric Power Supply [1996 (83) ELT 642] * Mukesh Kumar Agarwal & Co. [2004 (178) ELT 3] * Muller and Phipps (India) Ltd. [2004 (167) ELT 374] * LE Industries [2005 (180) ELT 409] 4.7 In regard to the department's reliance on Commissioner of Customs v. Sonam International Shop No.9 [2010 (10) LCX 0014], the Applicant submitted that the case was distinguishable as it dealt with misdeclaration of goods (Vitamin E powder) and did not involve interpretation of "retail sale" vis-à-vis packaging at the time of import. Therefore, the decision had limited relevance and could not be applied to the present factual matrix. 4.8 The Applicant submitted that it was accepted by the customs authorities that the product fell under Heading 2309, which is bifurcated into: * CTH 23091000 - Dog or cat food, put up for retail sale; and * CTH 230990 - Other 4.9 The customs department contended that, since the goods were eventually sold in the retail market, they should be classified under CTH 23091000, regardless of the packaging at the time of import. This interpretation was again....
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....s determined based on law and facts, there could be no allegation of evasion. The importer was well within its legal rights to adopt the correct classification for its goods, and there existed no estoppel in law against seeking such classification even if different treatment had occurred in the past. 4.17 The Applicant submitted a detailed rebuttal to the specific contentions raised by the Customs authorities. With respect to Point 1, the Applicant has refuted the argument that the "intent for retail sale" determines the appropriate tariff classification, reiterating the settled legal position-supported by judicial precedents cited earlier-that classification must be based solely on the form, nature, and presentation of the goods at the time of importation, rather than any subjective intent. In response to Point 2, the Applicant rejected the Department's assertion that packaging labels are irrelevant for classification purposes. It was emphasized that the imported products are in bulk packaging and do not bear declarations such as Maximum Retail Price (MRP) or expiry date, thereby disqualifying them from being treated as "retail packaging" under the Legal Metrology (Packaged....
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....gy rules - 2011 for differentiating retail sale and whole sale packages. He further relied upon HSN explanatory note to the chapter 23 and CTH 2309 and elaborated explanation of other Preparation/ complete feeds. He also relied upon an advance ruling issued by the authority in the matter of M/s Royal Canine India [2024(390) ELT 530 AAR Cus Mumbai]. Nobody appeared from the department side for personal hearing. DISCUSSION AND FINDINGS 6. I have taken into consideration all the materials placed before me in respect of the subject goods including all the submissions and citations made by the applicant during the personal hearing as well as the response received from the Jurisdictional Customs Commissionerate. Accordingly, I proceed to pronounce a ruling on the basis of information available on record as well as existing legal framework having bearing on the classification of the goods in question under the first schedule of the Customs Tariff Act, 1975, its corresponding Chapter notes, supplementary notes and relevant HSN explanatory notes. 6.1 The present matter pertains to the customs classification of dry dog and cat feed proposed to be imported by M/s Orange Pet Nutrition....
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....ysis of packaging, labelling, presentation and practically feasible. 6.5 The Harmonized System of Nomenclature (HSN) Explanatory Notes to Heading 2309 clarify that pet food qualifies under Subheading 230910 if: (i) it is prepared in a form suitable for direct sale to the consumer; (ii) it provides complete and balanced nutrition for pets; (iii) it is packaged in consumer-friendly units; and (iv) it carries consumer-oriented declarations, including usage instructions, manufacturer/importer details, 'batch number, and expiry date. Furthermore, under Rule 2(k) of the Legal Metrology (Packaged Commodities) Rules, 2011, a "retail package" is defined as "a package containing commodity which is produced, distributed, displayed, delivered or stored for sale through retail sales for the purpose of consumption by the individual or a group of individuals and includes the commodities packed for consumption by any institutional consumer or industrial consumer" and which is required to bear declarations in accordance with Rule 6(1). These declarations include, inter alia, the name and address of the manufacturer/importer, net quantity, month and year....
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...., feeding guidelines, instructions for use, batch number, expiry date, and the names and addresses of the manufacturer and importer. Paragraph A.5 of the Applicant's submission further reveals that the nutritional content is varied across products based on specific pet demographics. These features clearly satisfy the criteria outlined in the HSN Explanatory Notes for classification under Subheading 230910- specifically, that the goods are nutritionally complete, packaged for retail consumption, and carry essential consumer information. Additionally, in paragraph A-14 of its submission, the applicant has furnished the following sample copy of the label appearing on the bulk packaging of the subject goods. PUPPY SMALL & MEDIUM BREED 28/18 NET QTY 20KG- BULK PACKAGING Composition: Dehydrated chicken protein, maize, white rice, peas, chicken fat, hydrolyzed chicken protein, dried beet pulp, flax seed, minerals, salmon cil, dried brewer's yeast, dried chicory (a natural source of FOS and inulin), MOS & beta glucans, coconut oil, dried turmeric, dried basil, dried ginger. Analytical Constituents Analytical Constituents Crude Protein ....
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.... depends on whether the goods are "put up for retail sale", a phrase that has been consistently interpreted-as requiring an analysis of not only the packaging size but also the labelling, consumer-facing information, and intended market. The HSN Explanatory notes to Heading 2309 expressly clarifies that pet food falling under subheading 2309.10 must be in a form and package suitable for direct sale to the retail consumer, with accompanying declarations such as instructions for use, expiry date, and manufacturer/importer details. Therefore, where the product is packaged in a form that includes these details -- regardless of whether MRP is printed -- the objective indicators of retail packaging are clearly present. 6.12 Furthermore, the applicant's own submission reveals that the goods are fully formulated, dry pet food intended for direct feeding to dogs and cats, without any requirement for further processing. This strongly suggests that the product, even in 20 kg packs, is retail-ready and not a raw or intermediate input. It is incorrect to suggest that only goods bearing an MRP label or those in small-sized packs can be regarded as "put up for retail sale." The Legal Metro....
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....xplanatory Notes and the Legal Metrology Rules, requires that the goods be classified under Tariff Item 2309.10.00, given their packaging, completeness, and presentation as ready-to-consume pet food suitable for direct sale to the end consumer, will prevail. 6.16 The legal principle of "generalia specialibus non derogant" (the general does not override the specific) is applicable here. The Supreme Court in CCEx v. Wockhardt Life Sciences Ltd. [2012 (277) E.L.T. 299 (S.C.)] has affirmed that where a product clearly falls under a specific heading, classification under a general heading is impermissible. Applying this principle, classification under 23091000 is warranted. 6.17 The Applicant's reliance on decisions such as Dunlop India Ltd. [1983 (13) E.L.T. 1566 (SC)], Carrier Aircon Ltd. [2006 (199) E.L.T. 577 (SC)], and Hemant Subhas Teke [2024 (3) TMI 297 (Bom.)] is noted. These rulings affirm the principle that classification is based on the condition of goods at the time of import. However, that condition includes not only physical form but also packaging, labelling, and presentation. The 20 kg packs imported by the Applicant are fully formulated, ready-to-feed pet food....