Amprolium HCL Classifiable Under Chapter 29 as Pure Chemical, Not under Animal Feed Premixes: CESTAT Upholds Demand [Read Order]

The Chennai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) ruled that Amprolium HCL is a pure chemical classifiable under Chapter 29 of the Customs Tariff and not under animal feed premixes. The tribunal upheld the demand raised by the department.

Vital Therapeutics Pvt. Ltd., the appellant, imported several consignments of feed additives and chemicals including Amprolium HCL. The department alleged misclassification of the product, claiming that it was declared under the entry for animal feed premixes to claim exemption from duty, whereas in reality it was a pure chemical falling under Chapter 29.

The adjudicating authority accepted the department’s view, confirmed the duty demand on Amprolium HCL, and imposed penalties. On appeal, the Commissioner (Appeals) upheld the order. The appellant then approached the CESTAT.

The appellant’s counsel argued that Amprolium HCL was used in the animal feed industry and that it should qualify as an animal feed premix, making it eligible for exemption under the relevant notification. They argued that the product was not marketed as a standalone chemical but as an input for feed formulations.

The revenue counsel countered that the chemical imported was Amprolium HCL in its pure form and not a mixture or formulation intended as a premix. They argued that the test results and import documents clearly showed that the item was a pure chemical and thus appropriately classifiable under Chapter 29 of the Customs Tariff.

The two-member bench comprising Ajayan T.V. (Judicial Member) and Vasa Seshagiri Rao (Technical Member) observed that Amprolium HCL was imported in its pure form without any evidence of it being part of a premix.

The tribunal pointed out that classification must be determined on the basis of the nature of the imported goods at the time of entry and not on their end use. The tribunal explained that the item was a pure chemical, so it could not be classified under animal feed premixes for the purpose of duty exemption.

The tribunal upheld the duty demand on Amprolium HCL while giving partial relief to the appellant on other products.

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