TaxTMI 
TaxTMI 
2026 (6) TMI 903
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....ngly registered under Serial No. 203/2025-26 dated 25.02.2026. The applicant proposes to import of goods namely 'B-Traxim 2C Mn-220', and requested for ruling on classification of the said imported goods under Customs Tariff Act, 1975. 1.1. The applicant in their application, submitted as follows: Statements of relevant facts having a bearing on the question(s) raised 1.2. Commercial name: B-Traxim Composition: B-TRAXIM 2C is one of the most concentrated organic trace mineral source in the market. It is produced under Iso-Fusion Technology - IFT that ensures purity and homogeneity in each particle for optimal use in premix and utilizing feed: * Homogenous particle size of 200-300um (average particle size) Dustless and free-flowing * Pure crystalline form, no carriers * Fully water soluble * Neutral odor and taste * Highly concentrated * Full stability at different PH 1.3. Production process Complex copper glycinate in micro-crystalline particle size. Minerals are essential for most metabolic processes; therefore, even a slight deficiency may cause reduced animal performance and well-being. Supplement....
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....e manganese sulfate and glycine are precisely formulated to provide an exact ratio between each component. 1.8. Although not legally binding, Explanatory Note 29(1) describes a Chemically Defined Compounds as "a substance which consists of one molecular species (e.g., covalent or ionic) whose (composition is defined by a constant ratio of elements and can be represented by a definitive structural diagram. In a crystal lattice, the molecular species corresponds to the repeating unit cell." 1.9. Given this composition, the product clearly falls within the scope of HS Code 292249, which covers: "Organic chemicals - Oxygen-function amino-compounds - Amino acids, other than those containing more than one kind of oxygen function, and their esters; salts thereof- Other - Other.' This heading specifically includes amino-acid derivatives and their salts, which directly describes the chemical nature of B- Traxim 2C Mn-220. Therefore, under GRI 1, the product is appropriately classifiable under HS Code 29224990 as a salt of the amino acid glycine. 2. Comments of the Port Commissionerate: 2.1 The comments of the Jurisdictional port Commissionerate have been received on 20.03....
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....ch the advance ruling is sought. The compositional variability is further evidenced by: (i) the presence of associated counter-ions such as bisulphate; (ii) a fluctuating molecular weight ranging between 227 and 326 Da; and (iii) a metal- to-amino acid ratio stated only broadly as 1:1. The resulting non-uniform composition is wholly inconsistent with the concept of a "separate chemically defined compound". B-TRAXIM 2C is, in substance, a mixture of metal-amino acid complexes of variable composition derived from hydrolysed protein, and therefore falls outside the scope of Chapter 29. 2.1.3 The Product Bears the Essential Character of a Preparation for Animal Feeding under Heading 2309: Heading 2309 covers "preparations of a kind used in animal feeding". The HSN Explanatory Notes to this Heading clarify that it encompasses not only complete and supplementary animal feed, but also preparations used in making such feed - commonly known as premixes - consisting of active substances such as vitamins, amino acids, trace minerals, and enzymes, with or without carriers, processed to facilitate their use in animal feeding. Critically, even prepara....
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.... ambit of Chapter 29 and is classifiable under the applicable use-based heading. End-use, though not invariably determinative, assumes particular significance where, as in the case of Heading 2309, the tariff entry is itself framed in terms of use. 2.1.5 Judicial Precedent: The legal position is conclusively settled by the Hon'ble Supreme Court of India in Commissioner of Customs (NS1) v. Venkateshwara B.V. Bio Corp. Pvt. Ltd. [Civil Appeal Diary No. 57701 of 2024, decided on 07-02-2025]. The Supreme Court dismissed the Revenue's appeal and affirmed the CESTAT (Mumbai) order that animal feed additives/premixes containing vitamins, minerals, and other active substances - including those that may in isolation constitute defined compounds under Chapter 29 - are classifiable under Tariff Item 23099090 when formulated, branded, and traded as feed-grade premixes or additives for animal nutrition. The Court held that where goods are commercially known and used as feed premixes/additives, their essential character is that of animal feed preparations, irrespective of their chemical constituents. This ratio applies with full force to B-TRAXIM 2C, which is a feed-grade formulati....
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....the nature of activity (ongoing/proposed) is correct: Verification of import records indicates that M/s ADM Agro Industries India Private Limited has previously imported the product "B-TRAXIM 2C" through Mundra Port and cleared the same under Customs Tariff Item CUS/APR/MISC/1660/2026-Gr 1-O/o Pr Commr-Cus-Mundra I/4225767/2026 23099090 by declaring the goods as animal feed additives. The applicant has, therefore, been engaged in the import of the subject goods prior to filing of the present application. Hence, the activity in respect of the subject goods appears to be an ongoing import activity of the applicant. 2.1.11 Whether the question raised is pending before any officer of Customs, the Appellate Tribunal or any Court As per records available with this Commissionerate, no such case of the applicant is pending with any officer of the Customs, other Appellate Tribunal or any Court. 3. Record of Personal Hearing: During the course of personal hearings on 29.04.2026 and 14.05.2026, the applicant reiterated the facts already mentioned in the application. They requested to file a rejoinder, which was allowed. Further, they were asked to submit export documents rel....
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.... detract from the existence of a chemically defined structure formed through chemical reaction. Accordingly, the conclusion here in para 6 (a) is incorrect and contrary to chapter 29. 4.1.3 Para 6 (b): The product's formulation, method of application, regulatory compliance, manufacturer's own description, and entire commercial identity establish its essential character as a preparation of a kind used in animal feeding, squarely covered by Heading 2309. It is our view that the Department's conclusion that the product is classifiable under Heading 2309 based on formulation, application, regulatory compliance, or commercial description is not in accordance with the Chapter heading of 2309. Chapter Heading 2309 applies to "preparations", which necessarily involve blending of multiple constituents, and/or use of carriers or fillers. B-TRAXIM 2C is imported as a single chemically defined compound, not as a premix or formulated feed preparation. End-use or regulatory classification cannot override chemical identity, particularly when classification under Chapter 29 is determined by chemical nature under GRI 1 and Chapter Notes, and not by use. The classificat....
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.... Hence, the rationale of the said judgment does not apply to the present case. B-TRAXIM(r) 2C is a range of organic trace minerals bound to glycine. Its patented formulation and well known chemical crystalline structure ensure high stability and increased bioavailability compared to inorganic sources and other less stable organic mineral sources commonly used in the feed industry. The aforesaid judgment rests entirely on circular No. 188/22/96-CX (issued by the Ministry of Finance, Department of Revenue, Central Board of Excise and Customs, New Delhi, 26-3-1996). After careful analysis ADM concludes that the said circular does not state that ALL GOODS "commonly known to the trade as products for a specific use in animal feeding" are to be classified under heading 2309. Such interpretation would lead to the incoherent conclusion that if a company were to market simple wheat flour as an animal feeding product, then, its appropriate classification would be 2309. This is not sustainable. It does state that "it may be NECESSARY to ensure that the said animal feed supplements are ordinarily or commonly known to the trade as products for a specific use in animal feeding". But it is ....
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....jective characteristics and properties prevail over marketing claims, always. If a product is an oxygen-function amino-compound, it is classified under heading 2922, even if it is marketed for a specific use in animal feeding. 4.1.6 Conclusion: In view of the foregoing submissions, it is respectfully requested that the Hon'ble Authority may be pleased to: a) Disregard the Departmental Comments; b) Hold that B-TRAXIM 2C is a separate chemically defined compound; c) Classify the product under Chapter 29, specifically under CTH 29224990 (or appropriate heading under 2922); In case your good self requires any further information/ clarifications in this regard, we would be glad to provide the same. Lastly, request you to acknowledge the receipt of this letter and take this letter on record. 5. Findings, Discussion & Conclusion: 5.1 Having examined the CAAR-I application, the comments received from the jurisdictional Customs Commissionerate, the record of personal hearing and the applicable legal framework, I find the application to be valid in terms of the Customs Act, 1962 and the CAAR Regulations, 2021. I, therefore, allow the application ....
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....GRI mandates that "classification shall be determined according to the terms of the headings and any relative Section or Chapter Notes". Only where the terms of the headings or the relevant Notes do not determine the classification, recourse is taken to the subsequent Rules. Accordingly, to determine the correct classification of the impugned goods, it is necessary to examine Tariff Headings 2922 and 2309 read with the relevant Section Notes, Chapter Notes, and Explanatory Notes. 5.7 The relevant tariff entries read as under: 2309 PREPARATIONS OF A KIND USED IN ANIMAL FEEDING 2309 10 00 - Dog or cat food, put up for retail sale 2309 90 - Other : 2309 90 10 --- Compounded animal feed 2309 90 20 --- Concentrates for compound animal feed --- Feeds for fish (prawn, etc.) : 2309 90 31 ---- Prawn and shrimps feed 2309 90 32 ---- Fish feed in powdered form 2309 90 39 ---- Other 2309 90 90 --- Other 2922 OXYGEN-FUNCTION AMINO- COMPOUNDS - Amino-acids, other than those containing more than one kind of oxygen function, and their esters; salts ....
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....lly pure sugars." 5.10 From the Explanatory Notes, it can be made out that a separate chemically defined compound is a substance: (i) which consists of one molecular species (e.g. covalent or ionic), (ii) whose composition is defined by a constant ratio of elements and (iii) can be represented by a definitive structural diagram. 5.11 The Explanatory note (D) to Heading 2922 states as follows :- (D) AMINO-ACIDS AND THEIR ESTERS; SALTS THEREOF These compounds contain one or more carboxylic acid functions and one or more amine functions. Anhydrides, halides, peroxides and peroxyacids of carboxylic acids are regarded as acid functions. These compounds contain as oxygen functions only acids, their esters or their anhydrides. halides, peroxides and peroxyacids or a combination of these functions. Any oxygen function found in a non- parent segment attached to a parent amino-acid is disregarded for classification purposes. The amino-acids classified under this heading with their esters, salts and substitution derivatives include : (1) Lysine (diamino-n-hexanoic acid). Colourless crystals. A cleavage product of si....
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....26 Da. A molecule whose ligand composition varies and whose molecular parameters fluctuate cannot be represented by a definitive structural diagram or a constant ratio of elements. Consequently, the product fails the mandatory criteria of Chapter Note 1(a) to Chapter 29. 5.13 The applicant claims that Iso-Fusion Technology creates a "pure crystalline form with no carriers" and argues that any structural or molecular weight fluctuations are just "permissible process- related variations or impurities" under Note 1(a). However, a fluctuating molecular weight (227 to 326 Da) caused by an intentional mixture of variable amino acids from hydrolysed proteins is not a mere "manufacturing impurity". It is a fundamental characteristic of the product's formulation, which disqualifies it from Chapter 29. 5.14 I find that the applicant's reliance on Chapter Note 3 to Chapter 29 and Part (D) of the HSN Explanatory Notes to Heading 29.22 is legally untenable and misplaced. While Chapter Note 3 provides the statutory mechanism for classifying organo-metallic compounds within Chapter 29 based on their organic structure, and Part (D) of Heading 2922 explicitly encompasses pure amino-ac....
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....tary feed is the preparations devised to compensate for deficiencies, to ensure a well balanced animal diet, consisting of proteins, minerals or vitamins plus additional-energy feeds. The preparations of the third category are also known as premixes and are used in making the complete feed or supplementary feed. 5.17 The HSN explanatory Note II (C) to heading 2309 further elaborates on premixes as below :- These preparations, known in trade as "premixes", are, generally speaking, compound compositions consisting of a number of substances (sometimes called additives) the nature and proportions of which vary according to the animal production required. These substances are of three types: (1) Those which improve digestion and, more generally, ensure that the animal makes good use of the feeds and safeguard its health : vitamins or provitamins, amino acids, antibiotics, coccidiostats, trace elements, emulsifiers, flavourings and appetisers, etc. (2) Those designed to preserve the feeding stuffs (particularly the fatty components) until consumption by the animal : stabilisers, anti-oxidants, etc. (3) Those which serve as carriers and which may con....