TaxTMI 
TaxTMI 
2026 (1) TMI 796
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.... 13021919 of the Schedule to the Customs Tariff Act, 1975. The applicant in their application submitted as under : 1.1 APPLICANT'S ELIGIBLITY FOR ADVANCE RULING AND WHY IT IS MAINTAINABLE BEFORE THE HON'BLE CAAR: SI. No Requirement under the Customs Act How it is met in the present case 1. Section 28E(b) defining advance ruling The Applicant in the present case is 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 the product covered in the present application is not pending in the A....
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.... (10-20%) Linum usitatissimum [commonly known as Flax seed hulls] Ethanol d) Further, during the manufacturing process, carrier i.e., potato maltodextrin is added. Such potato maltodextrin is a white powder made from potato and aids in converting the active ingredient to powder form and transporting the same in the powder form, while also yielding powders with reduced stickiness. e) The product is thus an extract of vegetable origin, which is extracted by using a solvent. i.e., Ethanol. Form of import and End use of the product post import: a) The product in question is imported in the form of a brown-beige powder. b) After import, the product will be used as an ingredient in inter alia the manufacture and production of functional foods and dietary supplements. The Applicant will distribute to the industrial consumers on a B2B basis. Such industrial consumers use the product as a raw material to manufacture and formulate different types of nutraceutical applications like capsules, tablets etc., for promotion of well-being. Benefits of the product in question: a) The product is an advanced, standardized lignan extract from sel....
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....n 28H (2) of the Customs Act, an applicant may make an application for advance ruling in respect of questions relating to: Classification of goods under the Customs Tariff Act, 1975; 1.10 The present application is being made by the Applicant to confirm classification of the product LinumLife(r). Further, Applicant has not yet commenced import of the said products in India. 1.11 Therefore, it flows that in the present case, the Applicant is satisfying the following conditions required for filing the application for advance ruling, namely: 1.12 The Application is being made to confirm classification of the product LinumLife(r) proposed to be imported. 1.13 The Applicant have been granted a valid Importer-Exporter Code Number (IEC) under section 7 of the Foreign Trade (Development and Regulation) Act, 1992; 1.14 Application for advance ruling is in relation to clause (a) of Section 28H (2) of the Customs Act, 1962. Non-Applicability of Bar under Section 28I 1.15 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....
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....d from India are governed by the provisions of Customs Act. Section 12 of the Customs Act is the charging section, according to which basic customs duty ("BCD") is payable on all goods imported into India or exported out of India at such rates as may be specified under the Tariff. 1.19 In accordance with Section 2 of the Tariff, the rates at which BCD shall be levied are specified in First and Second Schedules to the Tariff Act. Accordingly, to determine the appropriate rate of BCD on goods imported in India, it is important to determine the classification of the imported goods under First Schedule of the Tariff. 1.20 The classification of the goods imported into India is to be determined based on the General Rules of Interpretation (hereinafter referred to as the "GRI") as set out in the Tariff. 1.21 As per Rule 1 of 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. 1.22 The Tariff is aligned, up to the 6-digit level, with the Harmonized System of Nomenclature (her....
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....ble material by solvents), provided that they are not specified or included in more specific headings of the Nomenclature (see list of exclusions at the end of Part (A) of this Explanatory Note). These saps and extracts differ from the essential oils, resinoids and extracted oleoresins of heading 33.01, in that, apart from volatile odoriferous constituents, they contain a far higher proportion of other plant substances (e.g., chlorophyll, tannins, bitter principles, carbohydrates and other extractive matter). Saps are usually thickened or solidified. Extracts may be in liquid, paste or solid form. "Tinctures" are extracts still dissolved in the alcohol by means of which they are extracted, the so-called "fluid extracts" are solutions of extracts in, for example, alcohol, glycerol or mineral oil. Tinctures and fluid extracts are generally standardised (for instance, pyrethrum extract may be standardised by adding mineral oil to produce commercial grades with a standard pyrethrins content of, e.g., 2%, 20% or 25%). Solid extracts are obtained by evaporating the solvent. Inert substances are sometimes added to certain extracts so that they can be more easily reduced ....
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.... vegetable extracts with other products (e.g., preparations which consist of a mixture of extract of O capsicum, spirits of turpentine, camphor and methyl salicylate, or of a mixture of tincture of opium, anise oil, camphor and benzoic acid) (heading 30.03 or 30.04). (iv) Intermediate products for the manufacture of insecticides, consisting of pyrethrum extracts diluted by addition of mineral oil in such quantities that the pyrethrins content is less than 2%, or with other substances such as synergists (e.g., piperonyl butoxide) added (heading 38.08). The heading also excludes vegetable extracts which have been mixed or compounded (without the addition of other substances) for therapeutic or prophylactic purposes. Such mixtures, and similar medicinal compound extracts made by treating a mixture of plants, are classified in heading 30.03 or 30.04. That latter heading also covers simple vegetable extracts (whether or not standardised or dissolved in any solvent) when put up in measured doses for therapeutic or prophylactic purposes or in forms or packings for retail sale for such purposes. The heading further excludes the following vegetable products, class....
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....es) for therapeutic or prophylactic purposes. The vegetable extracts i.e., generally raw materials for various manufactured products Natural gums, resins, gum-resins and oleoresins (heading 13.01). Malt extract (heading 19.01). (c) Extracts of coffee, tea or mate (heading 21.01). Vegetable saps and extracts constituting alcoholic beverages (Chapter 22). Tobacco extracts (heading 24.03). Camphor (heading 29.14) and glycyrrhizin and glycyrrhizates (heading 29.38). Extracts used as blood-grouping reagents (heading 38.22). Tanning extracts (heading 32.01). Dyeing extracts (heading 32.03). Natural rubber, balata, gutta-percha, guayule, chicle and similar natural gums (heading 40.01). 1.29 Linum life satisfies the inclusions list and also fall outside the purview of the exclusions list. The same is explained in detail below: The product is a vegetable extract classifiable under Heading 1302: The products in question are vegetable extracts. In this regard, it is essential to see the meaning of 'vegetable'. The definition of the same from various dictionaries are as follows: Source Definition https://dictionary.cambridge.org/dictio....
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....ned from clause (a) to clause (j). Note 1 to Chapter 13 is extracted below for ease of reference: "Heading 1302 applies, inter alia, to liquorice extract and extract of pyrethrum, extract of hops, extract of aloes and opium. The heading does not apply to: (a) liquorice extract containing more than 10% by weight of sucrose or put up as confectionery (heading 1704); (b) malt extract (heading 1901); (c) extracts of coffee, tea or mate (heading 2101); (d) vegetable saps or extracts constituting alcoholic beverages (Chapter 22); (e) camphor, glycyrrhizin or other products of heading 2914 or 2938; (f) concentrates of poppy straw containing not less than 50% by weight of alkaloids (heading 2939); (g) medicaments of heading 3003 or 3004 or blood - grouping reagents '[(heading 3822)]; (h) tanning or dyeing extracts (heading 3201 or 3203); (i) essential oils, concretes, absolutes, resinoids, extracted oleoresins, aqueous distillates or aqueous solutions of essential oils or preparations based on odoriferous substances of a kind used for the manufacture of beverages (Chapter 33); or ....
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....lements and functional foods, etc. by the industrial consumers to whom the product is distributed. 1.43 "Inert" substances/materials are not defined in the Tariff or HSN Explanatory Notes. The definition of the same from various dictionaries is as follows: Source Definition https://www.merriam-webster.com/dictionary/inert deficient in active properties especially lacking a usual or anticipated chemical or biological action https://dictionary.cambridge.org/dictionary/english/inert Inert substances do not produce a chemical reaction when another substance is added https://www.collinsdictionary.com/dictionary/english/inert An inert substance is one which does not react with other substances. 1.44 Thus, inert substances/materials permitted to added to the extracts are those which when added to the extracts do not chemically react with the extracts or change its chemical composition in any manner. That is, even after the addition the extracts continues to be essentially the extract alone and its nature is not altered by addition of the inert substance. 1.45 Before, explaining the addition of such inert materials, it is important to understand that such s....
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....rms spray dried extracts are easily transported, handled and reduced in bulk for delivering cost-effective and high quality ingredients. ..... Products intended for spray drying can be categorized into two major groups: sticky and non-sticky products [10]. Drying additives or carriers have been utilized to reduce the stickiness of food with high content of sugar, and/or to reduce the wall deposition problems [12]. Drying additives will also ensure the stability of the obtained product during storage. Each carrier has advantages and disadvantages in terms of properties, cost and process efficiency. Currently, maltodextrins, soluble modified starch derivates, used in food and herbal drug processing, have multifunctional properties: bulking and film formation, the ability to bind flavor and fat, and reducing the permeability of the wall matrix for oxygen [13]. In general, the usage of maltodextrins with higher water solubility can contribute to a significant reduction in the apparent viscosity of feed dispersion in favor of the atomization and drying of the liquid feed 1.47 As Bell Chem' (https://www.bellchem.com/news/maltodextrin-in-the....
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....ompound classes to a degree that cannot be achieved solely by means of initial solvent extraction.' The same is evident from the manufacturing process. 1.52 The product is not in the nature of a final manufactured product but serves as a raw material for further manufacturing. 1.53 Thus, from the above it is evident that: a) Linum life is extracted from the original/vegetable source by solvent i.e., Ethanol, and the same is not excluded from the list of exclusions at the end of Part (A) of the Explanatory Note b) The addition of inert substance i.e., potato maltodextrin does not alter the product's characteristic/nature, and it is only to convert the extract into solid form and retains the same in powder form c) The extract is in solid form d) The extract is a simple extract, obtained by the treatment of only one variety of plant e) The product is not itself a finished product but is a vegetable extract, which serves as a raw material for various manufactured products. 1.54 As far as the exclusions are concerned, the products in question do not form a part of the same as: a) There is no addition of substances which ....
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....ompacted tablet. b) Since the subject item viz. Ginseng tablet, was only an extract of the Ginseng plant, it was not excluded from Heading 1302. c) The Ginseng tablet did not contain any other active ingredients other than the extract of Ginseng. d) A perusal of open-source information available in public domain indicated that Ginseng extract was considered as a traditional medicine, and that 'extract' is widely used inter alia as a generic health supplement. e) Hence, the Department's classification under Tariff Item 21069099 was rejected as being completely out of context. 1.60 It is submitted that in terms of the above decision, the product is also an extract of flaxseed and popularly used as a traditional medicine. Therefore, the product is squarely covered under CTH 1302 by heading and description. CROSS Rulings have classified vegetable extracts akin to the product under heading 1302 1.61 Additional reliance is placed on the decision of the US Customs and Border Protection Authorities in the CROSS-Ruling No. H262217 dated 24.08.2016, wherein it was held that the term 'extract' in the context of botanical solvent....
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.... --- Sharbat 21069019 --- Other 21069020 --- Pan masala 21069030 --- Betel nut product known as "Supari" 21069040 --- Sugar-syrups containing added flavouring or colouring matter, not elsewhere specified or included; lactose syrup; glucose syrup and malto dextrine syrup 21069050 --- Compound preparations for making non-alcoholic beverages 21069060 --- Food flavouring material 21069070 --- Churna for pan 21069080 --- Custard powder --- Other: 21069091 --- Diabetic foods 21069092 --- Sterilized or pasteurized millstone 21069099 --- Other 1.67 It is also pertinent to reflect on Note 5 to Chapter 21 of the First Schedule to the Tariff: "5. Heading 2106 (except tariff items 2106 90 20 and 2106 90 30), inter alia, includes: (a) protein concentrates and textured protein substances; (b) preparations for use, either directly or after processing (such as cooking, dissolving or boiling in water, milk or other liquids), for human consumption; (c) preparations consisting wholly or partly of foodstuffs, used in the making of beverages of food preparations for human consumpt....
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....wder, etc.), for incorporation in food preparations either as ingredients or to improve some of their characteristics (appearance, keeping qualities, etc.) (see the General Explanatory Note to Chapter 38)." 1.71 From a perusal of the above, it is clear that only two categories of products are covered under Heading 2106 i.e., (A) Preparations which are for direct human consumption or consumption after processing and (B) Preparations which are mixed with foodstuffs and further used for the manufacture of food preparations. The product is not fit for direct human consumption 1.72 The product in question is an extract of vegetable and cannot be used directly for consumption or after processing such as cooking, dissolving or boiling in water, milk, etc. 1.73 The goods falling under Heading 2106, in addition to being a food preparation, should be edible in their as-imported form. Reliance in this regard is placed on the decision in Commissioner of Central Excise v. Tanmed Pharmaceuticals, 2018 (15) G.S.T.L. 276 (Tri. - Chennai), wherein it was held that the requirement of being 'edible' is a prime necessity for attracting classification under Chapter 21 viz. Heading 2....
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....herefore the grain in the form of flour is itself to be treated as a preparation, then the words "preparation with a basis of flour" would appear to be a tautological repetition. Therefore, in the context of the use of the words in the notification it appears to us that "preparations" as used in the said item 14 would have to be a product prepared by addition, mixing or other such similar process to the original commodity in order to derive a new commodity. In that sense mere grinding of barley grain to prepare barley flour or barley powder (as in the case of Purity Baley) would not appear to us to amount to a preparation. 1.80 A similar view has further been taken in the decision of Kothari Chemicals v. Union of India, 1996 (86) E.L.T. 209 (All.), where the Hon'ble Allahabad High Court described preparations as "products which are made from separate components". 1.81 The Applicant reiterates that the product has not been prepared by mixing or any similar process of the original commodity to derive a new commodity. It is not made from separate components since it is in the nature of merely an ingredient in its as-imported condition. The product becomes a new formulation o....
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...., 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 1.88 In this regard, reliance is placed on the definition of 'food supplement', as provided in Food Safety: The Science of Keeping Food Safe by Ian C. Shaw, 2nd ed. 2018. 'Food supplement' means foodstuffs the purpose of which is to supplement the normal diet, and which are concentrated sources of nutrients or other substances with a nutritional or physiological effect, alone or in combination, marketed in dose form, namely forms such as capsules, pastilles, tablets, pills and other similar forms, sachets of powder, ampoules of liquids, drops dispensing bott....
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....der the Customs Tariff of India? Applicant's Understanding: Not Applicable 2. Comments of The Port Commissionerate :- 2.1 The comments in respect of this application from the concerned port Commissionerate i.e. NS-1, JNCH, Nhava Sheva have been received Letter. vide No .CUS/APR/MISC/5516/2025-Gr(1And1)-O/o Commr-CUS-Nhava Sheva-1 dated 07.08.2025 are as below :- Para 2: Point 3 (i). Applicant is eligible in terms of section 28-E (c) of the Customs Act, 1962 to seek advance ruling. Point 3 (ii). As per available records in the assessment group, no other application on this subject is pending before any tribunal or Courts. Point 3 (iii). The claim of applicant regarding the nature of activity is that the products in question are extracts of vegetable origin. Such products are extracted by using a solvent i.e, Ethanol, the imported extracts are sold post import to manufacturers. The buyers, in turn, use the same to manufacture food and/or dietary supplements. The importer is a market leader in dealing with goods which serve the following markets. (i) Food and Beverage (ii) Home and personal care (iii) He....
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.... other products (e.g., preparations which consist of a mixture of extract of capsicum, spirits of turpentine, camphor and methyl salicylate, or of a mixture of tincture of opium, anise oil, camphor and benzoic acid) (heading 30.03 or 30.04). (iv) Intermediate products for the manufacture of insecticides, consisting of pyrethrum extracts diluted by addition of mineral oil in such quantities that the pyrethrins content is less than 2%, or with other substances such as synergists (e.g... piperonyl butoxide) added (heading 38.08). (v) The heading also excludes vegetable extracts which have been mixed or compounded (without the addition of other substances) for therapeutic or prophylactic purposes. Such mixtures, and similar medicinal compound extracts made by treating a mixture of plants, are classified in heading 30.03 or 30.04. That latter heading also covers simple vegetable extracts (whether or not standardised or dissolved in any solvent) when put up in measured doses for therapeutic or prophylactic purposes or in forms or packings for retail sale for such purposes. PARA B: Uses of these products as per submissions made by the importer in their ....
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....nts on the said classification of the said products. 4.4 Accordingly, the Applicant is filing the present submission in response to the comments of the department. The Applicant prays that the present submissions be treated as an addition to the submissions already made in Application No. 96 of 2025. Response to comments received from Deputy Commissioner of Customs (NS-I), Nhava Sheva on the Application filed: 4.5 Vide letter dated 07.08.2025, the Joint Commissioner of Customs (NS-I), Nhava Sheva has provided comments on the question raised. The comment is extracted below: PARA B: 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: Linum Life is a plant based extract which is an ingredient that is useful in promoting various aspects of health including men's health, prostate health, hair growth and maintenance of heathy hormone levels. The product is a seed extract of flax plant (Linum usitatissimum). The drug extract ratio is 8-12:1. Flaxseed has been recognized as the richest natural source of lignans, with a concentration mor....
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.... therapeutic benefits. It's most commonly used to relieve constipation and support colon and digestive health. The anthraquinones in cascara are also currently being studied for their potential use in cancer management and treatment. 13021913 Nuxvomica Nuxvomica is often recommended for individuals leading sedentary lifestyles with high levels of mental stress and work-related pressure. It is recommended for many other ailments, such as digestive issues, insomnia, liver conditions, migraine etc. 13021914 Ginseng (including powder) Ginseng has traditionally been used for a number of medical conditions. It can help build immunity, regulate blood sugar levels, reduce inflammation etc. 13021915 Agarose Agar contains a gel-like substance that bulks up in the gut. This stimulates the intestines and creates a bowel movement. This bulking effect is thought to make it useful as a laxative and for weight loss. 13021916 Neem Sometimes called "the village pharmacy," neem is a unique medicinal plant in that all of its parts - including its leaves, flowers, seeds, fruit, roots, and bark. Neem packs over 140 active compounds that may give it numerous antiox....
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.... submissions in application filed, that the product is rightly classifiable under Heading 1302. 4.14 The product is a pure extract and can be used in a wide range of applications. Thus, it is clear that the product is a mere raw material, which is purely extracted from the source plant and squarely covered under Heading 1302. Understanding the scope of Heading 3003/3004 covering 'Medicaments/medicinal preparations' for therapeutic and prophylactic uses 4.15 Heading 3003/3004 covers medicaments/medicinal preparations, obtained by mixing together two or more substances, for use in the internal or external treatment or prevention of human or animal ailments i.e., for therapeutic or prophylactic uses. If the same are not put up in measured doses or in forms or packings for retail, they fall under Heading 3003 and if put up in measured doses or in forms or packings for retail, they fall under Heading 3004. 4.16 Firstly, it is essential to note that what is covered under Heading 3003/3004 is a medicament. In order to understand whether a product is a medicament or not, it has to pass the common parlance test. For the said test, it will have to be first determined whet....
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.... common sense from the perception of a consumer ii. For therapeutic or prophylactic uses which is either precautionary or to treat an existing illness. Linum Life is not classifiable under Heading 3003/3004 4.23 Heading 3003 covers 'Medicaments which consists of two or more constituents which have been mixed together for therapeutic or prophylactic uses, not put up in measured doses or in packing for retail sale', whereas, Heading 3004 covers 'Medicaments consisting of Mixed or unmixed products for therapeutic or prophylactic uses, put up in measured doses or in packing for retail sale'. 4.24 As evident from the above, while both Heading 3003 as well as 3004 covers medicaments for therapeutic or prophylactic uses, the key differences are as follows: Heading 3003 covers: Heading 3004 covers: Medicaments of constituents 'mixed' together Medicaments of 'mixed' or 'unmixed' products Those not put up in me measured doses/in packing for retail sale Those put up in me measured doses/in packing for retail sale 4.25 Firstly, the product in question is not for retail sale and thus the same will fall out of the sco....
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....dated Extract of Lutein (20%) from a marigold flower with Maltodextrin Food supplement normally added to a tablets/capsule Annexure-1 600007019 11.10.2023 dated Beetroot extract Food supplement normally added to a tablets/capsule Annexure-2 600013184 dated 23.06.2025 Echinacea purpurea extract Botanical active ingredient in the manufacture of dietary supplements and herbal medicinal products Annexure-3 600008838 dated 03.10.2023 Extract of Zingiberis Rhizoma Chinese medicine for therapeutic remedies Annexure-4 600006168 06.04.2023 dated Dandelion extract Food supplement normally added to a tablets/capsules Annexure-5 600007015 12.06.2023 dated Ashwagandha extract with Maltodextrin Food supplement normally added to a tablets/capsules Annexure-6 US Cross Rulings US Cross Ruling No. and date Product in dispute and its composition Use Enclosed as N305404 dated 20.08.2019 Cranberry extract with Maltodextrin In dietary supplements Annexure-7 N060119 dated 20.05.2019 Lotus leaf extract containing water, protein, carbohydrate and alkaloids, all of which are left over from the original plan....
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....ive ingredient to powder form and transporting the same in the powder form, while also yielding powders with reduced stickiness. 5.4 They further submitted that the benefits of the product are as follows :- ○ The omega-3 fatty acids, in flaxseeds contribute to cardiovascular health by reducing inflammation and supporting healthy cholesterol levels; ○ Lignans in flaxseeds act as phytoestrogens, potentially helping balance hormones, particularly in postmenopausal women; ○ The high fiber content of flaxseeds has been studied for its effects on gastrointestinal health, promoting regular bowel movements and contributing to a healthy gut microbiome; ○ Potential hormonal effects, with research focusing on postmenopausal women and their impact on oestrogen levels; ○ Weight management, due to their combination of fiber, protein, and healthy fats may support satiety and weight loss Issue of classification 5.4 The applicant has sought an advance ruling on the classification of Linum Life(r) (hereinafter referred to as the "subject goods") and contended that the impugned goods merit classification under Tariff ....
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.... 210690 - Other: --- Soft drink concentrates: 21069011 ---- Sharbat 21069019 ---- Other 21069020 --- Pan masala 21069030 --- Betel nut product known as "Supari" 21069040 --- Sugar-syrups containing added flavouring or colouring matter, not elsewhere specified or included; lactose syrup; glucose syrup and malto dextrine syrup 21069050 --- Compound preparations for making non-alcoholic beverages 21069060 --- Food flavouring material 21069070 --- Churna for pan 21069080 --- Custard powder --- Other: 21069091 ---- Diabetic foods 21069092 ---- Sterilized or pasteurized millstone 21069099 --- Other 3003 and 3004 Tariff Item Description of goods 3003 MEDICAMENTS(EXCLUDING GOODS OF HEADING 3002,3005 OR 3006) CONSISTING OF TWO OR MORE CONSTITUENTS WHICH HAVE BEEN MIXED TOGETHER FOR THERAPEUTIC OR PROPHYLACTIC USES, NOT PUT UP IN MEASURED DOSES OR IN FORMS OR PACKINGS FOR RETAIL SALE 3003 10 00 - Containing penicillin's or derivatives thereof, with a penicillanic acid structure, or streptomycin's or their derivative....
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....t to decide the classification issue, these three entries require to be examined :- * Heading 1302- Vegetable saps and extracts (crude or concentrated extracts) * Heading 3003- Medicaments in bulk form (therapeutic or prophylactic preparations not in measured doses or in forms or packings for retail sale) * Heading 3004- Medicaments in measured doses or in forms or packings for retail sale 5.10 I find that the issue for consideration is the proper classification of the product under import, namely a preparation consisting of a single plant extract, presented in powder form with the aid of certain inactive ingredients which do not alter the nature of the extract. The applicant has urged that the product is not intended for direct retail sale, is not compounded with other active substances, and is therefore, appropriately classifiable under Chapter 13 of the Customs Tariff. First, I examine scope of entry CTH 3003 and CTH 3004 which is contended by the Department. 5.10.1 Examination of scope under Heading 3003: Heading 3003-Medicaments (Not in measured doses or in forms or packings for retail sale) Heading 3003 provides for "Medicaments (excludi....
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....chedule to the Customs Tariff Act, 1975 covers "Medicaments (excluding goods of heading 3002, 3005 or 3006) consisting of mixed or unmixed products, for therapeutic or prophylactic uses, put up in measured doses (including those in the form of transdermal administration systems) or in forms or in packings for retail sale". The statutory text makes it clear that presentation in measured doses or in forms or in packings for retail sale is a mandatory condition for classification under this heading". This interpretation is further supported by the HSN Explanatory Notes to Heading 3004. which explain that the heading is confined to medicaments in the form of tablets, capsules, ampoules, syringes or other measured doses, or retail packings bearinst dosage instructions and labels. Bulk intermediates and institutional packs are specifically excluded from this scope. In the present case, the impugned goods are admittedly not intended for retail sale, nor they are put up in measured doses. They are supplied in bulk powdered form. Consequently, the necessary condition for classification under Heading 3004 is not satisfied. I therefore hold that the product cannot be classified under Headi....
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....n any solvent, are to be treated as unmixed products. This provision affirms that the proper classification of such goods remains within Chapter 13, and not Chapter 30, unless compounded into active ingredients/medicaments. In the present case, the applicant's product is a single plant extract. The use of inert substance is confined only to converting the extract into a powdered form, and does not add to or alter the therapeutic quality or nature of the extract. Such incidental additions are specifically contemplated in the HSN Explanatory Notes to Heading 1302 and do not disturb its classification. Accordingly, in light of the heading text of 1302, the statutory clarification in Chapter Note 3 to Chapter 30, and the scope explained in the HSN Explanatory Notes, I hold that the impugned goods are correctly classifiable under Heading 1302 as vegetable extracts. 5.11 'On the basis of the above discussion, the broad scope of the entries may be summarized as below. From the foregoing analysis, I conclude that: * The goods cannot be classified under Heading 3004, as they are neither in measured doses nor in forms nor packing for retail sale. * The good....