AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2026 (4) TMI 1805
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.... and sold under the name "Pelaforce EMA1170". 2. Applicant's Submissions: 2 The applicant submitted that the said Powdered Extract from the Root of the Plant, Pelargonium Sidoides will be imported in bulk and will be supplied to manufacturers for use as raw material/ ingredient in the manufacture of tablets / capsules / syrups meant for prevention and treatment of viral colds, flu and respiratory tract infections. 3. About Pelaforce EMA 1170- Pelaforce is a soluble vacuum dried powdered extract derived from the root of the plant Pelargonium Sidoides, originating throughout Eastern Cape and Free state of the Republic of South Africa and is obtained using the hydro-ethanolic extraction method. Below is the composition and description of the product: Product name: Pela forceTM Ema1170(tm)M Pelargonium Sidoides Extract Product Description Soluble vacuum dried Pelargonium Sidoides root powdered extract Extraction Solvent Hydro-ethanolic extraction. Ethanol 11% (m/m) and water for preparation of extracts Geographical origin of the product Occurs throughout Lesotho and the Eastern Cape and Free State of the republic of South Africa. Produced in South A....
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....World Customs Organization ('WCO'). It has been held by the Hon'ble Supreme Court in the case of Collector of Customs, Bombay Vs. Business Forms - 2002 (142) ELT 18 that the HSN Explanatory Notes aid in the interpretation of the Headings of the Tariff and may be used as a safe guide for the same. 5.4 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") set out in the Tariff. 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. 5.5 The product is a soluble vacuum-dried powder extract which is derived from the root of the plant i.e., Pelargonium Sidoides by using hydro-ethanolic extraction method. Plant extracts are specifically, covered under Heading 1302. Tariff heading 1302 of the Customs Tariff covers vegetable saps and extracts; pectic substances, pectinates and pectates; agar-agar and other mucilages and thickeners, whether or not modified, derived from vegetable products. The said heading, to the extent relevant for extracts, is reproduced below....
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....res of different varieties of plants. Compound extracts (whether in the form of alcoholic tinctures or in any other forms) therefore contain the constituents of several kinds of plant; they include compound jalap extract. compound extract of aloes, compound extract of cinchona, etc. 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. They are also excluded from the heading when they are highly refined or purified, e.g., by means of chromatographic purification, ultrafiltration, or additional extraction Cycles (eg. liquid-liquid extraction) following initial extraction.) 7. The explanation provided for Tariff Heading 13.02 in the HSN Explanatory Notes clarifies that extracts are covered under this heading, provided they are not specified or included in more specific headings of the nomenclature. It is also mentioned that extracts under this heading (1302) are usually obtained by extraction using solvents. Further, as per Notes, Extracts may be simple or compound. Simple e....
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....onium Sidoides plant by using simple initial extraction process i.e., the hydro-ethanolic extraction method, which involves using a solvent mixture of water and ethanol to extract compounds from plant materials. Therefore, the product in question meets this condition, as no additional extraction process/ ultra purification/ chromatographic purification is carried out after the initial extraction. 12. Reliance is placed on the decision in Cachet Pharmaceuticals (P) Ltd. Versus Commr. Of Customs, New Delhi 2017 (356) E.L.T. 300 (Tri. - Del.), in which, it is held that Ginseng extract powder is correctly classifiable under Heading 13.02 and also placed on US Customs Ruling N241904 dated 4th June 2013, in which Corn Silk extract powder, to which Maltodextrin was added as Carrier, is held to fall under Heading 13.02. 13. In view of the above discussion, as the product in question is a plant extract used as raw material for manufacturing an end product, the product clearly merits classification under CTH 13021919 of the Customs Tariff Act. Further, all goods of Heading 1302 19, other than vegetable seeds and extracts of pyrethrum or of the roots plants containing rotenone, are elig....
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....ted with 30-50% Maltodextrin and optimization condition was Maltodextrin content of 40.83%. * Extract from the article appearing on website https://www.sciencedirect.com/science/article/pii/S2772502223000963 bearing the title "The effect of maltodextrin and drying temperature on the characteristics of Aloe-bignay instant drink", which shows concentration of maltodextrin of 30% to be the best. 14.5 Further, reliance is placed on the following US Customs Ruling which holds that the presence of inert carrier such as Maltodextrin in the Vegetable Extract powders does not affect their classification under Heading 13.02 irrespective of the percentage of the Carrier: US Customs Ruling HQ H225004 dated 10 Nov 2015: In particular, attention is drawn to the following para appearing in the said ruling: "However, we note that the EN carves out exceptions for products that. after simple extraction, have been mixed with other simple extracts to form so-called compound extracts or have been supplemented with inert materials. With regard to the latter, moreover, the EN does not cap the quantity of inert materials that may be added to a particular extract. It ....
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....ct. The subject goods are to be used in manufacturing of supplements having medicinal properties. He further contented that the benefit of Sr. No. 37 of the Notification. No. 45/2025 - Customs dated 24.10.2025. He in support of their claim relied upon case laws: US Customs ruling - N241904 dated 04.06.2013, Catchet Pharmaceuticals (P) Ltd. Vs. Commissioner of Customs, New Delhi (Tri. - Del.). Nobody appeared for Personal Hearing from the department side. 17. Discussion and findings: - 17.1 I have considered all the materials placed before me in respect of the classification of subject goods. I have gone through the submissions made by the applicant during the personal hearing on 23.02.2026. Therefore, I proceed to pronounce a ruling on the basis of information available on record as well as existing legal framework. The issue before me pertains to the classification of " Powdered extract derived from the root of the plant Pelargonium Sidoides, marketed as Pelaforce EMA1170" and exemption from customs duty in excess of 15% under Sr. No. 37 of Notification No. 45/2025-Cus dated 24.10.2025. 17.2 At the outset, I find that the issue raised by the applicant squarely fa....
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....levant tariff provisions. * Relevant Tariff Heading 1302 covers: "Vegetable saps and extracts; pectic substances, pectinates and pectates; agar-agar and other mucilages and thickeners derived from vegetable products". Subheading 1302.19 covers other vegetable extracts. * The HSN Explanatory Notes state that Heading 1302 covers: "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 to powder (e.g. belladonna extract, to which powdered gum Arabic is added) or to obtain a standard strength (for instance, certain quantities of starch are add....
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.... 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 purpose. 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. 17.6 I observe that extracts of this chapter heading are generally raw material for various manufactured products. They are excluded from this heading when, due to the addition of other substances, they attain the character of foods preparation,....
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....0.03 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. " 17.7 Furthermore, the product is a hydro-ethanolic extract of Pelargonium sidoides root in vacuum-dried powder form, standardized and purest form with 70% active extract and 30% maltodextrin (carrier). The subject product is imported in bulk and supplied exclusively to pharmaceutical manufacturers for used in preparation of medicaments for viral cold, influenza and respiratory tract infections. It is cleared that the imported product is not a crude extract but a standardized therapeutic extract, obtained through controlled hydro-ethanolic extraction, concentration and drying and addition of maltodextrin as pharmaceutical carrier. This results in pharmaceutically usable intermediate, not a mere botanical extract. The product is not sold for general use, exclusively supplied to pharmaceutical manufacturers and has a specific therapeutic application. Thus, it possesses the essential character of a medicament. Further, the P....
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....10% 10% 3003 90 13 ---- Of Siddha system kg . 10% 10% 3003 90 14 ---- Of Homoeopathic system kg . 10% 10% 3003 90 15 ---- Of Bio-chemic system kg . 10% 10% --- Menthol crystals and milk of magnesia : 3003 90 21 ---- Menthol crystals kg . 10% 10% 3003 90 22 ---- Milk of magnesia kg . 10% 10% --- Bovine albumin and drugs of animal origin, merbromine national formulary XII (mercurochrome), calcium sennoside, anaesthetic agents used in human or veterinary medicine or surgery, aluminium hydroxide gel : 3003 90 31 ---- Bovine albumin and drugs of animal origin kg . 10% 10% 3003 90 32 ---- Merbromine national formulary XII (mercurochrome) kg . 10% 10% 3003 90 33 ---- Calcium sennoside kg . 10% 10% 3003 90 34 ---- Anaesthetic agents used in human or veterinary medicine or surgery kg . 10% 10% 3003 90 35 ---- Aluminium hydroxide gel kg . 10% 10% 3003 90 36 ---- Ketamine kg . 10% 10% 3....
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....virtue of their being used primarily in pharmacy, does not necessarily imply that they may be regarded as medicaments of heading 30.03 or 30.04 when they are mixed, or unmixed but put up in measured doses or in forms or packings for retail sale. While the term "medicaments" within the meaning of heading 30.03 or 30.04 refers only to products which have therapeutic or prophylactic uses, the broader term "pharmacy" has reference both to medicaments and to products having no therapeutic or prophylactic uses (e.g. tonic beverages. fortified foods. blood-grouping reagents). 19. I observe that the subject goods are not in natural form, it is processed, treated and manufacture goods. Heading 1211 covers only dried herbs, roots (raw or cut) and plant materials in natural or minimally processed form. Heading 1211 applies only when goods are whole/cut/dried plant parts, crushed or powdered (simple processing only), not chemically extracted or processed. In the present case, the subject good are hydro ethanolic extraction performed, active compounds separated and concentrated, further underwent vacuum drying and added with maltodextrin. Maltodextrin is used as a carrier only. Hence, the....
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....nder Notification No. 45/2025-Cus dated 24.10.2025. This product is classified under HISN 3003 (Chapter 30), it will not be eligible for concessional duty under the said notification. In view of the forgoing facts and discussion it can safely be concluded that the product, though derived from a plant, has evolved through processing and standardization into a medicamen intermediate, and therefore merits classification under Chapter 30 (HSN 3003) rather than under Chapter 13. Further, the applicant has relied upon the ratio of the above case laws which is irrelevant in as much as the product in the instant case is not a crude extract. It is rather standardized extract and is possessing specific therapeutic qualities and is well recognized in the market for the same. 23. I also find through various open sources/scientific platforms (i.e. PubMed, ScienceDirect, WebMD) and ResearchGate etc.) that the subject product is standardized, pharmacologically characterized extract with consistent therapeutic qualities and is a clinically proven medicinal substance. Some such references are given below: i) As per PubMed.com: Pelargonium sidoides DC. (Geraniaceae), a popular medicin....
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....ons. v) As per EBSCO.com: Therapeutic Uses "An alcohol extract made from P. sidoides has become popular in Germany as a treatment for various respiratory problems, including acute bronchitis, the common cold, sinusitis, pharyngitis (sore throat), and tonsillitis. Fairly large studies have been performed to substantiate some of these uses. 24. It is gathered through the open sources that Eps 7630 in particular, is not a general scientific abbreviation rather is a manufacture internal code, for example, it is proprietary designation used by the German Company Dr. Wilmer and refers to the specific standard extract batch/process. It is to be underlined that EMA117, as available in open sources, is a pharma grade commercial extract name (e.g. Pelaforce) and is manufactured according to European Medicines Agency (EMA) herba! nomograph standards. 25. I observe that, General Rule of Interpretation, GRI 1 provides that classification of goods shall be determined according to the terms of "the headings of the tariff schedule and any relative section or chapter notes. In the event that the goods cannot be classified solely on the basis of GRI I and if the section notes....