Squid Liver Powder Classifiable as Other Preparations of Animal Feeding under Customs Tariff Act: CESTAT [Read Order]

The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) ruled that the Squid liver powder is classifiable as other preparations of animal feeding under the head Preparations of a kind used in animal feeding in the Customs Tariff Act, 1975 (CTA).

Squid Liver Powder is a raw material used in the manufacture of shrimp feed formulation and is derived from internal organs of squid.

The supplier in their website have stated that the product is made from fresh by-product of squid and consists of squid liver paste 50% and the well-fine soyabean meal 50%. While the appellants, M/s. Avanti Feeds Limited, claim the classification of the goods under Customs Tariff Heading (CTH) 2301 2011, the same was reclassified by the department under CTH 2309 9090 and duties were demanded accordingly.

B.V. Kumar counsel appearing for M/s Avanti Feeds Ltd stated that the squid liver powder imported by them is not a premix much less with additives but it is used for the manufacture of prawn / shrimp feed falling under Chapter Heading 2309 9031 of Customs Tariff Act, 1975. Hence cannot be classified under Heading 2309 of CTA and are correctly classifiable under Heading 2301 2011.

Rohan Muralidharan, counsel appearing on behalf of M/s. Godrej Agrovet Ltd stated that the imported goods are correctly classifiable under CTH 2301. The counsel explained the Harmonized System of Nomenclature (HSN) Explanatory Notes to Heading 2301 and 2309 and stated that HS Code 2309 would cover only products which are in the form supplied for capable of specific use as feed supplement for animals and not capable of any general use.

The Authorized Representatives, R. Rajaraman and S. Balakumar reiterated the findings in the impugned orders and have stated that since the import product is not purely made out of squid and is a mixture of animal and plant material, its classification would be rightly under CTH 2309.

A Two-Member Bench of the Tribunal comprising CS Sulekha Beevi, Judicial Member and M Ajit Kumar, Technical Member observed that “We find that the classification of the ‘Squid Liver Powder’ has been correctly done under CTH 23099090 and hence the impugned orders are upheld.”

To Read the full text of the Order CLICK HERE

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