TaxTMI 
TaxTMI 
2026 (2) TMI 294
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....on of the goods in question under Tariff Item 2923 2090 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 th....
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....phospholipid as the predominant ingredient with remaining portion being Silicon Dioxide (SiO2) - an anticaking agent. Benefits of using Sharp PS i) Phosphatidylserine is a natural building block for tissues and plays a crucial role in the functioning of the brain, muscles and other tissues. j) Sharp PS offers the following benefits: i. Supports Cognition ii. Provides positive effects on mood iii. Provides positive effects on skin and muscle health APPLICANT'S ELIGIBLITY FOR ADVANCE RULING 1.4 In order to file an application before the Authority for Advance Ruling, the Applicant must satisfy the conditions prescribed under the Customs Act, 1962 (hereinafter referred to as 'Customs Act'). 1.5 Provisions relating to Advance Ruling are prescribed under Chapter VB of the Customs Act. Clause (c) of Section 28E of the Customs Act defines an "Applicant" as: In this chapter, unless the context otherwise requires, (c) "applicant" means- (i) holding a valid Importer-exporter Code Number granted under section 7 of the Foreign Trade (Development and Regulation) Act, 1992 (22 of 1992); 1.6 Th....
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...." 1.11 Thus, the conditions set out in Section 28I are satisfied as: a. the question raised in the present application regarding classification of 'Sharp PS' is not pending in the applicant's own case before any officer of customs, the Appellate Tribunal, or any Court; b. the question raised in the present application regarding classification of 'Sharp PS' is not a matter already decided by the Appellate Tribunal or any Court 1.12 Therefore, it flows that in the present case, the Applicant satisfies all the criteria required for filing the application for advance ruling, namely: (a) The Applicant has been granted a valid Importer-Exporter Code Number (IEC) under section 7 of the Foreign Trade (Development and Regulation) Act, 1992; (b) The Applicant is filing the Application in respect of goods prior to their importation into India; (c) The application for advance ruling is in relation to clause (a) of Section 28H (2) of the Customs Act, 1962; and (d) The application is not barred under Section 28I of the Customs Act, 1962. Thus, the present application must be allowed to be proceeded with. CLASSI....
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....eating unit cell. Separate chemically defined compounds containing other substances deliberately added during or after their manufacture (including purification) are excluded from this Chapter. Accordingly, a product consisting of saccharin mixed with lactose, for example, to render the product suitable for use as a sweetening agent is excluded (see Explanatory Note to heading 29.25). The separate chemically defined compounds of this Chapter may contain impurities (Note 1 (a)). An exception to this rule is created by the wording of heading 29.40 which, with regard to sugars, restricts the scope of the heading to chemically pure sugars. 1.19 Sharp PS's composition is defined by a constant ratio of elements and has a specific chemical formula. Therefore, the product is a separate chemically defined chemical, falling under the ambit of Chapter 29 of the Tariff. 1.20 Within Chapter 29, the product appears to fall under Heading 2923 as the same covers lecithins and other phosphoaminolipids. The relevant extract of Heading 2923 in the Tariff is extracted hereunder: Tariff Item Description of goods 2923 QUATERNARY AMMONIUM SALTS AND HYDROXIDES; LECI....
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....i. fatty acids ii. glycerophosphoric acid iii. an organic nitrogen base such as choline 1.23 In the present case, the product in question i.e. Phosphatidylserine consists of a glycerophosphate skeleton conjugated with two fatty acids, L-serine and a base of phosphatidylcholine. Therefore, the product satisfies the requirements for classification as a phosphoaminolipid and accordingly is classified under Heading 2923. 1.24 Further, phosphoaminolipids are defined as phospholipids containing a nitrogen base. From a perusal of the technical specifications for the product, it is understood that phosphatidylserine is a part of the Mixed Phospholipids chemical family. It is also clear from the chemical structure of phosphatidylserine that it is phospholipid with a nitrogen base. Thus, the fact that phosphatidylserine is a phosphoaminolipid is also evident from its chemical structure 1.25 The chemical structure of phospholipids and the chemical structure of the phosphatidylserine is reproduced below: 1.26 From a perusal of the above chemical structures, it is clear that Sharp PS is a phospholipid with a nitrogen base, and therefore it is a phosphoaminolipid. ....
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....d from the concerned port Commissionerate. 3. Personal hearing The personal hearing in the matter was conducted on 19.06.2025 wherein the authorized representative of the applicant attended and reiterated the facts which were already submitted with the application. Further, during the hearing the authorized representatives were conveyed that the concerned port comments are yet to be received. Once the comments are received, these will be shared with the applicant for rebuttal. However, no one appeared on behalf of the port Commissionerate i.e. Nhava Sheva-I, JNCH, Nhava Sheva. 4. Additional Submission: 4.1 The applicant has submitted additional submission vide mail dated 19.06.2025 The same is reproduced as under: 4.2 The present submission is being filed in connection with the Advance Ruling Application filed before the Ld. Customs Authority for Advance Rulings by the Applicant for the classification of 'Sharp PS' product. 4.3 We wish to make a correction in Para A.8 of the Application (at pg. no. 9) whereby it was submitted that the Sharp PS is a pure product. It is submitted that the product i.e. Sharp PS has phospholipid as the predominant ingredient w....
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.... (f) The products mentioned in (a), (b), (c), (d) or (e) above with an added stabiliser (including an anti-caking agent) necessary for their preservation or transport; (g) The products mentioned in (a), (b), (c), (d), (e) or (f) above with an added anti-dusting agent or a colouring or odoriferous substance or an emetic added to facilitate their identification or for safety reasons, provided that the additions do not render the product particularly suitable for specific use rather than for general use; (h) The following products, diluted to standard strengths, for the production of azo dyes : diazonium salts, couplers used for these salts and diazotisable amines and their salts. 4.8 Thus, as per Chapter Note 1(f) to Chapter 29, addition of stabilizers such as anti-caking agents for the preservation and transport of the product is permitted under Chapter 29. 4.9 Silicon Dioxide is used as an anticaking agent in various products, ranging from cosmetics, paints, rubbers, pesticides, etc. Article on usage of silicon dioxide in food and other industries as an anti-caking agent is enclosed herewith as 'Annexure-2'. 4.10 In light of the above, it is....
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....g Webex link to join the Personal Hearing on 19.06.2025, no one attended the PH from the concerned Port. Product description 5.2 As per applicant's submission Sharp PS (r) is a Phospholipid derived from soy lecithin. The chemical name of the product is 'Phosphatidylserine enriched soy lecithin' and its common name is 'Phosphatidylserine'. Sharp PS is suitable for use in fortified foods, tablets, gummies, etc. and functions as a nutrient. Soy Phosphatidylserine is obtained through enzymatic transphosphatidylation of phosphatidylcholine soybean lecithin with amino acid L-serine. Phosphatidylserine consists of a glycerophosphate skeleton conjugated with two fatty acids and L-serine. The product i.e. Sharp PS has phospholipid as the predominant ingredient with remaining portion being Silicon Dioxide (SiO2) - an anticaking agent. The staring material i.e. Soy-lecithin, L-serine, enzymes and anti-oxidants (Ascorbyl Palmitate and Tocopherols) are put through the process of Enzymatic trans-phosphatidylation. The resultant product is 'Phosphatidylserine'. Silicon Dioxide is then added to this as an anticaking agent. Silicon Dioxide is a moisture-absorbing a....
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.... requires, the headings of this Chapter apply only to : (a) separate chemically defined organic compounds, whether or not containing impurities;". The HSN Explanatory Notes to Chapter 29 state that "a separate chemically defined compound is a substance which consists of one molecular species (e.g. covalent or ionic) whose composition is defined by a constant ration of elements and can be represented by a definitive structural diagram. In a crystal lattice, the molecular species corresponds to the repeating unit cell. Separate chemically defined compounds containing other substances deliberately added during or after their manufacture (including purification) are excluded from this Chapter. Accordingly, a product consisting of saccharin mixed with lactose, for example, to render the product suitable for use as a sweetening agent is excluded (see Explanatory Note to heading 29.25). The separate chemically defined compounds of this Chapter may contain impurities (Note 1 (a)). An exception to this rule is created by the wording of heading 29.40 which, with regard to sugars, restricts the scope of the heading to chemically pure sugars." 5.5.2 Therefore, as per the e....
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...., more or less viscous form or, if the soya-bean oil has been extracted with acetone, in yellowish granules. Ovolecithin is used in medicine. Commercial soya-bean lecithin is used as an emulsifying, dispersing, etc. agent in the food and animal feed industries, in paints, in the petroleum industry, etc." 5.5.4 As per the HSN explanatory Notes to Heading 2923, lecithins and other phosphoaminolipids are esters resulting from a combination of (i) fatty acids (ii) glycerophosphoric acid and (iii) an organic nitrogen base such as choline. The applicant has submitted that the product i.e. Phosphatidylserine consists of a glycerophosphate skeleton conjugated with two fatty acids, L-serine and a base of phosphatidylcholine. It is a part of the mixed Phospholipids chemical family. It is phospholipid with a nitrogen base which is also shown by its chemical structure. 5.5.5 The applicant has submitted that the product has phospholipid as the predominant ingredient with the remaining portion being Silicon Dioxide (SiO2)- an anticaking agent. Silicon Dioxide is a moisture-absorbing anti-caking agent and protects or preserves the Phosphatidylserine fr....
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....Other". 5.6 The applicant has placed reliance on Cross Ruling No. N270760 dated 02.12.2015 whereby Phosphatidylserine was classified under Sub-Heading 2923 20 as "lecithins and other phosphoaminolipids: Other". While such rulings are not binding in India, they carry persuasive value and support a uniform interpretation under the Harmonized system. 5.7 In view of above, I hold that the product "Sharp PS" merits classification under heading 2923 and specifically under CTI 2923 2090. It is a separate chemically defined compound, is defined by a constant ratio of elements. has a specific chemical formula and consists of a glycerophosphate skeleton conjugated with two fatty acids, L-serine and a base of phosphatidylcholine. Accordingly, I hold that the subject product namely "Sharp PS" merits classification under Chapter 29, Heading 2923, Sub- Heading 2923 20, Tariff Item 2923 2090 of the First Schedule to the Customs Tariff Act, 1975. 6. In view of above, the answers to the questions raised by the applicant are as follows :- (a) Whether "Sharp PS" is classifiable under Customs Tariff Item 2923 2090 of the First Schedule to the Customs Tariff Act, 1975? Ans :-....