AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2026 (1) TMI 728
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....69099 of the Schedule to the Customs Tariff Act, 1975. 1.1 The applicant in their application submitted as under : APPLICANT'S ELIGIBLITY FOR ADVANCE RULING AND WHY IT IS MAINTAINABLE BEFORE THE HON'BLE CAAR S. No. Requirement under the Customs Act How it is met in the present case 1. Section 28E(b) defining advance ruling The Applicants in the present case are seeking a written decision on the questions as referred to in Section 28H of the Customs Act, 1962, in terms of Section 28E(b). 2. Section 28E(b) read with Section 28H enabling the nature of questions for which answer is sought The present application is being made in prescribed format and the question on which advance ruling is sought is with respect to classification of goods under the Customs Tariff Act, 1975. 3, Section 28E[c] defining applicant The applicant holds a valid IEC Code granted under section 7 of the Foreign Trade (Development and Regulation) Act, 1992 (22 of 1992). 4. Section 28I(2) (proviso) baring in certain cases application is not maintainable The question of classification of product covered in the present application is not pending in the Appli....
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....te, stabilizing the microcapsules and avoiding the release of iron, The same is exhibited below. 1.9. The intake of iron every day is essential to avoid iron deficiency, the most prevalent nutritional deficiency. This can be prevented by increasing iron intake via food fortification. The biggest iron fortification challenges in food processing are metallic taste, high reactivity (oxidation) and unpleasant gastro-intestinal tract side-effects. 1.10. Form of import and use post import: A. The product in question is imported in the form of a brown fine powder. B. The product is imported for trading in as imported form to manufacturers in food and dietary supplements industry. The buyers use the product in question as an ingredient to manufacture food and/or dietary supplements. The safety data sheet also indicates the same. C Fortis is suitable for human consumption. This microencapsulated iron ingredient allows the fortification of foods with iron without changing the appearance, palatability or taste of these fortified foods. 1.11. Benefits of using AB Fortis A) A large number of studies stress the importance of iron during prenatal devel....
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....ay make an application for advance ruling in respect of questions relating to: (a) Classification of goods under the Customs Tariff Act, 1975; 1.18. The present application is being made by the Applicant to confirm classification of AB Fortis. Further, Applicant has not yet commenced import of AB Fortis in India. Non-Applicability of Bar under Section 28I 1.19. Section 28I of the Customs Act, 1962 is set out below: "SECTION 28-I. Procedure on receipt of application. - (1) On receipt of an application, the Authority shall cause a copy thereof to be forwarded to the [Principal Commissioner of Customs or Commissioner of Customs] and, if necessary, call upon him to furnish the relevant records : Provided that where any records have been called for by the Authority in any case, such records shall, as soon as possible, be returned to the [Principal Commissioner of Customs or Commissioner of Customs]. (2) The Authority may, after examining the application and the records called for, by order, either allow or reject the application : Provided that the Authority shall not allow the application [* * *] where the question raised in t....
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....f the GRI, classification of the imported products shall be determined according to the terms of the headings and any relative Section or Chapter Notes and, provided such headings or Notes do not otherwise require, according to the remaining Rules of the GRI. 1.26. As already mentioned above, AB Fortis a mixture, composed of ferric saccharate, calcium alginate, and water. 1.27. Ferric saccharate is basically 'iron sucrose', which is used to treat abnormally low levels of iron and the same is covered under Chapter 29 i.e., organic chemicals. 1.28. The other component i.e., Calcium alginate is a water-insoluble, gelatinous, cream-coloured substance that can be created through the addition of aqueous calcium chloride to aqueous sodium alginate. "Alginate" is usually the salts of alginic acid, but it can also refer to derivatives of alginic acid and alginic acid itself. The same is covered under Chapter 39 i.e., plastic and articles thereof. 1.29. Thus, AB-Fortis microcapsules are produced by gelation of alginate with calcium, entrapping the iron salt inside. Calcium displays a strong interaction with alginate, stabilizing the microcapsules and avoiding the untimely....
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....preparations. The imported products are fit for human consumption 1.35. Furthermore, it is submitted that AB Fortis are fit for human consumption. This is evident from the raw material questionnaire which provides a declaration that the product is suitable for human consumption. Relevant extract from the raw material questionnaire is hereunder: AB Fortis is fit for human consumption after processing 1.36. With respect to question of whether the imported products are for use for human consumption after processing, it is submitted that AB Fortis is in the nature of products that can be consumed by humans after simple processing. The type of processing that is envisioned under the ambit of Heading 2106 is "cooking, dissolving or boiling in water, milk, etc." 1.37. The above-mentioned processes illustrate that the processes covered under Heading 2106 are simple processes which can be undertaken at home by a consumer to consume the preparations. AB Fortis can be consumed after such simple processing such as dissolving in water etc. and is fit for direct human consumption. AB Fortis is a preparation consisting wholly or partly of foodstuffs 1.38. It is submitted that....
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....ndustries (including those consisting of mixtures of natural products), not elsewhere specified or included'. 1.45 However, Chapter Note 1(b) to Chapter 38 clearly states that Chapter 38 does not cover mixtures of chemicals with foodstuffs or other substances with nutritive value, of a kind used in the preparation of human foodstuffs and that the same generally fall under Heading 2106. The relevant extract of the same is hereunder: "1. This Chapter does not cover: (a) **** (b) mixtures of chemicals with foodstuffs or other substances with nutritive value, of a kind used in the preparation of human foodstuffs (generally, heading 2106);" 1.46 Therefore, even as per the above, AB fortis being a mixture having nutritive value and used for human consumption, the same falls outside the purview of Heading 3824 and within the scope of Heading 2106, which covers food preparations not elsewhere specified or included. ISSUES REQUIRING ADVANCE RULING AND APPLICANT'S UNDERSTANDING 1.47 In light of the aforementioned submissions, the Applicant's interpretation of the questions raised will be as under: a) Question: Whether the product in....
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....ic effect against a specific disease or ailment are excluded (heading 30.03 or 30.04). 2.5. Uses of these products as per submissions made by the importer in their CAAR Application and as per information available in open source are reproduced below: - AB Fortis Microencapsulated Iron is a microencapsulated iron (ferric saccharate) supplement for curing iron deficiencies. 2.6 Thus, the product is used as a supplement. As per the Explanatory notes of heading 2106, the said heading includes "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." Thus the products i.e. AB Fortis in the present application appears to be classifiable under heading 2106 of the Customs Tariff Act, 1975. 3. Record of Personal hearing: The personal hearing on the matter was held on 28.08.2025. During the course of virtual personal hearing, the aforementioned representatives reiterated the written submissions made in the application along with the counter reply submitted throu....
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....ssification goods under the Customs Tariff is governed by the General Rules for Interpretation (GIR) of the Harmonized System, read with relevant Section and Chapter Notes. 4.7 To ascertain the classification of the impugned goods, Heading 2106 (Food preparations not elsewhere specified or included) requires examination. Tariff Item Description 2106 FOOD PREPARATIONS NOT ELSEWHERE SPECIFIED OR INCLUDED 21061000 - Protein concentrates and textured protein substances 210690 - 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 maltodextrin syrup 2106 90 50 --- Compound preparations for making non-alcoholic beverages 2106 90 60 --- Food flavouring materia 2106 90 70 --- Churna for pan 2.106 90 80 --- Custard powder --- Other: 2106 90 91 ---- Diabetic foods 2106 90 92 ---- Sterilized or pasteurized millstone 2106 9099....
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....olours, 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)........... 4.10 It is observed that the Tariff Heading 2106 is, by its very title, a residual heading. It is a well-established principle of classification, as reiterated by the Hon'ble Supreme Court in cases such as Hindustan Poles Corpa. v. CCE [(2006 (196) ELT 400 (S.C.)] and Collector of Central Excise, Shillong v. Wood Craft Products Ltd. [(1995 (77) E.L.T. 23 (S.C.)], that a residuary entry can be resorted to only when the goods cannot, by any conceivable proces....
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....c taste and low reactivity makes it possible to fortify beverages and foodstuffs such as dairy products, cereals, bread, meat, vegetarian meat analogues, and many others. 4.15 I observe that supplements for general well-being are covered under Heading 2106. As per submissions made by the importer and as per information available in open source, AB Fortis Microencapsulated Iron is a microencapsulated iron (ferric saccharate) supplement for curing iron deficiencies. The product is used as a supplement. As per the Explanatory notes of heading 2106, the said heading includes "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." Thus the products i.e. AB Fortis in the present application appears to be classifiable under heading 2106 of the Customs Tariff Act, 1975. 4.16 The applicant has also discussed Heading 3824 which covers, 'Prepared Binders for Foundry Moulds or Cores; Chemical products and preparations of the chemical or allied industries (includin....