TaxTMI 
TaxTMI 
2026 (8) TMI 428
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...., 1 reach to conclusion that the subject goods Pelaforce EMA1170, described as powdered extract derived from the root of the plant Pelargonium Sidoides as per the given process (para 3 above). is Classifiable under Customs Tariff Heading 3003. specifically under HS Code 3003 90 90 --- Other of the First Schedule to the Customs Tariff Act. 1975. in terms of General Rule of Interpretation. GIR Rules (specific Heading) and GIR-3Bcessential character of the goods. it is implicit that the relevant regulatory mechanism pertaining to the import of the said goods is to be complied with, if any. 26.1. The subject good Pelaforce EMA1170 is not eligible for the benefit of concessional rate of' duty under Notification No. 45/2025-Cus dated 24.10.2025. 3. The applicant has mentioned the following grounds for modification and rectification of the said advance ruling: i. The applicant, vide additional submissions on dated 22.06.2026, reiterated that Pelaforce EMA1170 is a simple vegetable extract obtained by hydro-ethanolic extraction of the roots of Pelargonium Sidoides and merits classification under CTH 1302 19 19. It was further submitted that the addition of 30% Malt....
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.... Customs Act, 1962. This Authority is a statutory authority constituted under Chapter V-B of the Customs Act, 1962, and derives its powers solely from the provisions of the said Act and the Rules and Regulations framed thereunder. Section 28M (1) of the Customs Act, 1962 provides that the Authority shall exercise such powers and follow such procedure as may be prescribed. In exercise of the powers conferred under the Act, the Central Board of Indirect Taxes and Customs has notified the Customs Authority for Advance Rulings Regulations, 2021, vide Notification No. 01/2021- Customs (N.T.) dated 04.01.2021, as amended. 4.3 Subsequently, upon examination of the records and the applicable legal provisions, it has been found that the said advance ruling was pronounced under a mistake of law/fact within the meaning of Rule 21 of the Customs Authority for Advance Rulings Regulations. Accordingly, this Authority has initiated proceedings for modification of the said advance ruling. After affording the applicant and the jurisdictional Principal Commissioner/Commissioner of Customs a reasonable opportunity of being heard and considering the submissions made, this Authority is satisfied tha....
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....ardise potency, and such addition does not alter their tariff classification. Therefore, the mere presence of Maltodextrin cannot, by itself, exclude the goods from Heading 1302. 7. I also find that whether the manufacturing process excludes Heading 1302. The exclusion contained in the HSN Explanatory Notes relates to extracts subjected to high refinement or purification, such as chromatographic purification, ultrafiltration or additional extraction cycles resulting in selective concentration or removal of constituents beyond normal solvent extraction. From the process flow chart placed on record, it appears that the manufacturing process comprises milling, hydro-ethanolic extraction, filtration, vacuum drying, recovery of solvent and addition of Maltodextrin. There is no evidence of chromatographic purification, ultrafiltration or liquid-liquid extraction after the initial extraction stage. Mere evaporation of solvent to obtain a solid extract is specifically recognised by the HSN Explanatory Notes as a normal method of producing solid extracts and cannot be equated with an additional extraction cycle. 8. Further, heading 3003 covers medicaments consisting of two or more con....
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....to remain classifiable as vegetable extracts notwithstanding their medicinal properties. Reference may also be made to various United States Customs rulings, including N241904 dated 04.06.2013, wherein plant extracts containing substantial quantities of Maltodextrin as inert carrier continued to be classified under Heading 1302, since the carrier did not alter the essential character of the extract. Although the said foreign ruling is not binding on the Customs authorities in India, it has persuasive value, particularly as the Indian Customs Tariff is also based on the Harmonized System of Nomenclature (HSN). The reasoning adopted therein, therefore, lends support to the conclusion independently reached under the provisions of the Customs Tariff Act, 1975, that the impugned goods are appropriately classifiable under Heading 1302. 12. Furthermore, the HSN Explanatory Notes to Heading 1302 clarify that vegetable extracts may be presented in liquid, paste or solid form and that solid extracts are obtained by evaporation of the solvent. Therefore, the process of removal of the extraction solvent by vacuum drying is an integral part of obtaining a solid extract and cannot, by itself,....