In re Generex Pharmassist Private Limited (CAAR Mumbai)

The Customs Authority for Advance Rulings, Mumbai considered an application filed by M/s Generex Pharmassist Private Limited seeking an advance ruling on the classification of “Keranat”, an imported yellowish oil-form product used as a raw material for manufacturing hair-care nutraceutical tablets. The application was received on 07.04.2026 under the relevant provisions of the Customs Act, 1962. Keranat comprises approximately 60% millet seed extract, 29.93% sunflower seed oil, 10% wheat seed extract and 0.07% rosemary extract. The product is manufactured through extraction of millet and wheat constituents, followed by blending and standardisation with cold-pressed sunflower seed oil and addition of rosemary extract. It is imported in bulk packs and supplied to third-party manufacturers for further processing into tablets; it is not imported as a finished tablet, measured dose or ready-to-consume nutraceutical. The applicant initially claimed classification under CTI 1302 19 19 and, following tariff restructuring effective from 01.05.2026, amended the claim to CTI 1302 19 39 — “Other” extracts. The jurisdictional Commissionerate proposed classification under CTI 2106 90 99 as a food preparation not elsewhere specified or included. The applicant contended that Heading 1302 specifically covers compound and standardised vegetable extracts, that sunflower oil functions only as a carrier/standardising medium, and that the downstream use of Keranat cannot determine its classification at importation. The Authority examined Heading 1302 and the alternative classifications under Chapters 15, 21, 30, 33 and 38. It found that the botanical extracts remained the substantive components of Keranat, while sunflower seed oil performed the supporting functions of carrying, diluting and standardising the extracts; rosemary extract, present at approximately 0.07%, functioned as an antioxidant. The Authority also considered that the HSN Explanatory Notes recognise liquid, fluid and compound extracts and permit standardisation without necessarily changing their character, while excluding extracts where additions give them the character of food preparations or medicaments or where they undergo specified further purification processes. The material on record did not establish that the additions transformed Keranat into a food preparation, medicament or other specifically covered preparation. Classification under Chapters 15, 30, 33 and 38 was therefore not accepted. The Authority further held that Heading 2106 is residual, whereas CTI 1302 19 39 is a residual tariff item specifically within the “Extracts” branch of Heading 1302. Since Keranat was not covered by the specifically enumerated extract entries under CTI 1302 19 11 to 1302 19 38, the appropriate tariff item was CTI 1302 19 39. Accordingly, the Authority ruled that Keranat is classifiable under CTI 1302 19 39 of the First Schedule to the Customs Tariff Act, 1975, and not under CTI 2106 90 99 as proposed by the jurisdictional Commissioner.

FULL TEXT OF THE ORDER OF CUSTOMS AUTHORITY OF ADVANCE RULING, MUMBAI

M/s Generex Pharmassist Private Limited (II 0307001717) (hereinafter referred to as “the applicant”) has filed an application in Form CAAR-1 before the Customs Authority for Advance Rulings, Mumbai (hereinafter referred to as “CAAR” or “the Authority”). The application, along with the prescribed fee and supporting documents, was received in the Secretariat of CAAR, Mumbai on 07.04.2026 in terms of Section 28-11 (1) of the Customs Act, 1962. The applicant is engaged in the import of a product namely “Keranat” and has sought an advance ruling under Section 2811 (2) of the Customs Act, 1962 on questions relating to the classification of the product described as “Keranat”.

2. Submission by Applicant–

2.1 Statement of relevant facts having a bearing on the question on which advance ruling is required

2.1.1 The applicant deals with in-license clinically backed, patented ingredients from around the world and serve the Indian pharmaceutical, nutraceutical, OTC and D2C sectors. The applicant has been importing the product namely “Keranat” from Roberta SA, France under Customs Tariff Item (CTI) 1302 19 19 from Air Cargo Complex, Mumbai & 1GI Air Cargo, Delhi.

2.1.2 Keranat is imported in a yellowish oil form in 25 kg, 5 kg and 1 kg bottles packed in bulk cartons and is used as an ingredient to manufacture tablets to support hair growth and prevent hair loss. The Applicant does not process, repack or label the product imported into the country and sells the same in as is form to third parties where it is further processed in the form of tablets. with added supplements such as vitamins, zinc etc., before being sold to end consumers through other marketing companies.

2.1.3 Keranat is a vegetable extract derived from millet and wheat, dissolved or carried in sunflower oil, and not subjected to further purification or additional extraction cycles.

2.1.4 The Applicant is the sole and exclusive importer of Keranat into India, as there may be a similar product with similar composition imported into India. The Applicant has been importing Keranat under CTI 1302 19 19 and there is no dispute or objection pending with the authorities with respect to its classification or valuation till date.

2.1.5 The applicant, however, desires to obtain a binding legal determination from CAAR to ensure certainty, uniformity, and future compliance in line with the statutory framework and. hence this application.

2.2 Applicant’s eligibility for Advance Ruling:

The applicant holds a valid 11X2 No. 0307001717 and therefore qualifies as an “applicant” under Section 28E(c) of the Customs Act’ 1962. The question on which the advance ruling is sought is in respect of classification of goods under the Customs Tariff Act’ 1975 which is admissible under Section 281-1(a).

The activity involved pertains to proposed/fixture imports as contemplated under Section 2811 of the Customs Act, 1962, though the applicant has also stated that certain consignments have already been imported earlier under cu 1302 1919. The applicant has declared that no proceedings involving the same issue are pending before any Customs authority, Appellate Tribunal or any Court of Law. Accordingly, the application appears admissible under Section 28­I (2) of the Customs Act, 1962.

2.3 Question(s) on which Advance Ruling is required:

In light of the aforementioned, the Applicant seeks to enter the following questions for Advance Ruling, and its interpretation of the question will be as under:

Question No. 1: “Whether the product in question i.e. Keranat which is in the nature of a compound vegetable extract when imported into India is classifiable under Customs Tariff Item (CTI) 1302 of the First Schedule to the Customs Tariff Act, 1975 (the Tariff)”

Question No. 2: “Should the product in question in the present application i.e. Keranat be classifiable as ‘animal, vegetable or microbial fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes’ in CTH 1512 or 1515.”

Question No. 3: “Should the product in question be classified under CTI I 2106 as miscellaneous edible preparation.”

Question No. 4: “Should the product in question be classified as pharmaceutical products under CTH 3003 or 3004.”

Question No. 5: “Should the product in question be classified under CTITs 3301 (Essential Oils). 3305 (preparation for use on the hair) or 3307 (perfumery, cosmetic or toilet preparation)”

Question No. 6: “Should the product in question be classified under Cl’! I 3824 as (chemical products and preparation of the chemical or allied industries (including those consisting of mixtures of natural products).”

Question No. 7: If the product mentioned above is not classifiable under the CTI Is / CTIs as mentioned above, then what would be the correct classification of the above product under the Tariff’?

2.4 Whether Kcranat which is in the nature of a compound vegetable extract classifiable under CTII 1302

2.4.1 The composition of Keranat is as follows:

Sr. No.	Ingredient	Composition (%)
1.	Millet seed extract	60
2.	Sunflower seed oil	29.93
3.	Wheat seed extract	10
4.	Rosemary extract	0.07

2.4.2 Kcranat is manufactured by crushing millet seeds into millet flour and its standardization by adding cold pressed sunflower seed oil. Thereafter, wheat extract is extracted from wheat seed with ethanol and filtration and thereafter ethanol is removed by way of vacuum concentration. This wheat extract is thereafter added to standardized Millet seed extract. Finally, Rosemary leaves extract is added to the mixture along with cold pressed sunflower seed oil for standardization to get the final “Kcranat”. The flow chart of manufacturing of Kcranat is provided below.

2.4.3 The manufacturing process of Kcranat involves the following steps:

> Crushing of whole millet seeds to millet flour.

> Addition of cold-pressed sunflower oil by CO2 extraction to millet flour to get

> standardized millet seed extract.

> Extraction of wheat extract from wheat seed by way of ethanolic extraction (i.e. extraction with ethanol), and filtration (i.e. removal of ethanol by vacuum concentration).

> Addition of wheat seed extract to standardized millet seed extract.

> Standardization of the mixture of millet and wheat extract with cold-pressed sunflower oil and addition of CO2 rosemary leaves extract.

> Final product — Kcranat

2.4.4 Given the above, Keranat is a compound vegetable extract derived from millet and Wheat and standardised / carried in sunflower oil and has not been subjected to further purification or additional extraction cycles. The sunflower oil merely functions as a carrier / standardising medium. Further, after the initial extraction process, the product has not been subjected to any further purification, chromatographic, ultrafiltration or additional extraction cycles which would alter the essential character of the product as a vegetable extract classifiable under I leading 1302.

The product derives its essential character from the underlying vegetable extracts of millet and wheat and not from sunflower oil as such. The sunflower oil merely functions as a. carrier / standardising medium and does not impart the character of a vegetable oil or fat falling under Chapter 15 of the Customs Tariff. In commercial understanding, as well as having regard to its composition, manufacturing process and intended usage, Keranat continues to remain a vegetable extract and not a preparation of vegetable fats or oils. Further, even if Keranat appears as an oily liquid, the same does not alter the essential character of the product as a vegetable extract.

‘l’licrefore, Keranat is classifiable under Customs Tariff Heading (‘CTI I’) 1302 which covers ‘vegetable saps and extracts; pectic substances, pectinates and pectates; agar-agar and other mucilage’s and thickeners, whether• or not modified, derived from vegetable products’, and specifically under tariff item 1302 19 39, i.e. the residual entry ‘Other’ extracts under I leading 1302. The said entry appropriately covers vegetable extracts which arc not specifically enumerated under tariff items 1302 19 11 to 1302 19 38.

It is respectfully submitted that the 11SN Explanatory Notes to I leading 1302 specifically recognise that vegetable extracts may be simple or compound extracts, and may contain added inert substances or carrier media for standardisation or stability purposes, without losing their classification as vegetable extracts. In the present ease, sunflower oil merely acts as a carrier / standardising medium and does not alter the fundamental character of the product as a vegetable extract. Further, the product remains identifiable in trade and commerce as a plant / vegetable extract preparation and not as sunflower oil or a preparation of vegetable oils.

2.4.5 Chapter 13 falls under Section II of the Import Tariff titled ‘lac: gums, resins and other vegetable saps and extracts’. CT111302 under Chapter 13 covers the following sub-headings and tariff items:

HSN Code	—	Description
1302		VEGETABLE SAPS AND EXTRACTS; PECTIC SUBSTANCES, PECTINATES AND PECTATES; AGAR-AGAR AND OTHER MUCILAGES AND THICKENERS, WHETHER OR NOT MODIFIED, DERIVED FROM VEGETABLE PRODUCTS
	–	Vegetable saps and extracts:
1302 11 00	—	Opium
1302 12 00	—	Of liquorice
1302 13 00	—	Of hops
1302 14 00	—	Of Ephedra
1302 19	—	Other:
	—	Extracts:
1302 19 11	—-	Of belladonna
1302 19 12	—-	Of cascara sagrada
1302 19 13	—-	Of nuxvomica
1302 19 14	—-	Of ginseng (including powder)
1302 19 15	—-	Of agarose
1302 19 16	—-	Of neem
1302 19 17	—-	Of gymnema
1302 19 18	—-	Of garacenia and cambodge
1302 19 21	—-	Of Withania somnifera
1302 19 22	—-	Of Bacopa monnieri
1302 19 23	—-	Of Berberis aristata
1302 19 24	—-	Of Boswellia serrata
1302 19 25	—-	Of Emblica officinalis
1302 19 26	—-	Of Ocimum sanctum
1302 19 27	—-	Of Capsicum annuum
1302 19 28	—-	Of Phaseolus vulgaris
1302 19 31	—-	Of Piper nigrum
1302 19 32	—-	Of Pterocarpus marsupium
1302 19 33	—-	Of Punica granatum
1302 19 34	—-	Of Salacia reticulata
1302 19 35	—-	Of Tagetes erecta
1302 19 36	—-	Of Terminalia bellirica
1302 19 37	—-	Of Curcuma longa
1302 19 38	—-	Of Zingiber officinale
1302 19 39	—-	Other
1302 19 50	—	Cashew shell liquid (CNSL), crude
1302 19 60	—	Purified and distilled CNSL (Cardanol)
1302 19 90	—	Other
1302 20 00	–	Pectic substances, pectinates and pectates
	–	Mucilages and thickeners, whether or not modified, derived from vegetable products:
1302 31 00	—	Agar-agar
1302 32	—	Mucilages and thickeners, whether or not modified, derived from locust beans, locust bean seeds or guar seeds:
		Guargum:

2.4.6. Further, note to Chapter 13 states that:

“Heading 1302 applies, inter alia, to liquor ice extract and extract of pyrethrum, extract of hops, extract of aloes and opium.

The heading does not apply to:

(a) liquor ice extract containing more than 10% by weight of sucrose or put up as confectionery (heading 1704);

(b) malt extract (heading 1901);

(c0 extracts of coffee, tea or mate (heading 2101);

(d) vegetable saps or extracts constituting alcoholic beverages (Chapter 22);

(e) camphor, glycyrrhizin or other products of heading 2914 or 2938;

(f) concentrates of poppy straw containing not less than 50% by weight of alkaloids (heading 2939);

(g) medicaments of heading 3003 or 3004 or blood-grouping reagents (heading 3822);

(h) tanning or dyeing extracts (heading 3201 or 3203);

(i) essential oils, Concretes, absolutes, retinoids, extracted oleoresins, aqueous distillates or aqueous solutions of essential oils or preparations based on odoriferous substances kind used_. the manufacture of beverages (Chapter 33); or

(j) natural rubber, balance, gutta-percha, guayule, chicle or similar natural gums (heading 4001).”

Except for the exclusions mentioned above, where Keranat does not fall, the above Chapter Notes do not appear to help in classification of the said good.

2.4.7 Heading 1302 is broadly classified into three groups, namely:

Group	Description
First Group	Vegetable Saps and Extracts
Second Group	Pectin substances, pectinates and pectates
Third Group	Mucilages and thickeners, whether or not modified, derived from vegetable products

2.4.8 The sub-headings and tariff items below Chapter 13 under the single dash (-) entry are:

Tariff Item	Description
1302	VEGETABLE SAPS AND EXTRACTS; PECTIC SUBSTANCES, PECTINATES AND PECTATES; AGAR-AGAR AND OTHER MUCILAGES AND THICKENERS, WHETHER OR NOT MODIFIED, DERIVED FROM VEGETABLE PRODUCTS
—	Vegetable saps and extracts:
1302 11 00	Opium
1302 12 00	Of liquorice
1302 13 00	Of hops
1302 14 00	Of Ephedra
1302 19	Other:
—	Extracts:
1302 19 11	Of belladonna
1302 19 12	Of cascara sagrada
1302 19 13	Of nuxvomica
1302 19 14	Of ginseng (including powder)
1302 19 15	Of agarose
1302 19 16	Of neem
1302 19 17	Of gymnema
1302 19 18	Of garcinia and cambodge
1302 19 21	Of Withania somnifera
1302 19 22	Of Bacopa monnieri
1302 19 23	Of Berberis aristata
1302 19 24	Of Boswellia serrata
1302 19 25	Of Emblica officinalis
1302 19 26	Of Ocimum sanctum
1302 19 27	Of Capsicum annuum
1302 19 28	Of Phaseolus vulgaris
1302 19 31	Of Piper nigrum
1302 19 32	Of Pterocarpus marsupium
1302 19 33	Of Punica granatum
1302 19 34	Of Salacia reticulata
1302 19 35	Of Tagetes erecta
1302 19 36	Of Terminalia bellirica
1302 19 37	Of Curcuma longa
1302 19 38	Of Zingiber officinale
1302 19 39	Other
1302 19 50	Cashew shell liquid (CNSL), crude
1302 19 60	Purified and distilled CNSL (Cardanol)
1302 19 90	Other
1302 20 00	Pectic substances, pectinates and pectates
—	Mucilages and thickeners, whether or not modified, derived from vegetable products:

2.49. The composition breakdown of Keranat is as follows:

Ingredients	Role / Component	Function
Standardized millet seed extract – 89.8%	Millet seed extract – 60%	Active ingredient
Standardized millet seed extract – 89.8%	Sunflower seed oil – 29.80%	Excipient
Wheat Extract – 10%	Wheat extract – 10%	Active ingredient
Rosemary extract – 0.2%	Rosemary extract – 0.07%	Antioxidant
Rosemary extract – 0.2%	Sunflower seed oil – 0.13%	Excipient

2.4.10 Millets arc a highly varied group of small-seeded grasses, widely grown around the world as cereal crops or grains for fodder and human food. Most millets belong to the tribe Panacea. (https://en.wikipedia.org/wiki/Millet). Further, Wheat is a group of wild and domesticated grasses of the genus Tritium. They are cultivated for their cereal grains, which are staple foods around the world (https://en.wikipedia.org/wiki/Wheat). Millet seed extract and Wheat extract form the active ingredients of Keranat along with excipient (sunflower seed oil) and antioxidant (rosemary extract). The rosemary extract acts as an antioxidant in the composition of Keranat and does not change the essential characteristics or the product. Thus, Keranat qualifies as ‘vegetable saps and extracts’ under CHI 1302.

2.4.11 Further, a combined reading of the double dash (–) entries from 13021100 to 13021400 below single dash (-) heading ‘vegetable saps and extracts’ below Cl’!! 1302 and the above description shows that Keranat with the above ingredients arc not covered therein.

HSN Code	Description
1302	VEGETABLE SAPS AND EXTRACTS; PECTIC SUBSTANCES, PECTINATES AND PECTATES; AGAR-AGAR AND OTHER MUCILAGES AND THICKENERS, WHETHER OR NOT MODIFIED, DERIVED FROM VEGETABLE PRODUCTS
—	Vegetable saps and extracts:
1302 11 00	Opium
1302 12 00	Of liquorice
1302 13 00	Of hops
1302 14 00	Of Ephedra

2.4.12 The next double dash (–) entry below 13021400 is the residual entry i.e. 1302 19 “other:” with a triple clash (—) entry “Extracts:”. The following arc the further dash (—-) entries below “Other:” and “Extracts:”

Tariff Item		Description
1302 19	—	Other:
	—	Extracts:
1302 19 11	—-	Of belladonna
1302 19 12	—-	Of cascara sagrada
1302 19 13	—-	Of nuxvomica
1302 19 14	—-	Of ginseng (including powder)
1302 19 15	—-	Of agarose
1302 19 16	—-	Of neem
1302 19 17	—-	Of gymnema
1302 19 18	—-	Of garacenia and cambodge
1302 19 21	—-	Of Withania somnifera
1302 19 22	—-	Of Bacopa monnieri
1302 19 23	—-	Of Berberis aristata
1302 19 24	—-	Of Boswellia serrata
1302 19 25	—-	Of Emblica officinalis
1302 19 26	—-	Of Ocimum sanctum
1302 19 27	—-	Of Capsicum annuum
1302 19 28	—-	Of Phascolus vulgaris
1302 19 31	—-	Of Piper nigrum
1302 19 32	—-	Of Pterocarpus marsupium
1302 19 33	—-	Of Punica granatum
1302 19 34	—-	Of Salacia reticulata
1302 19 35	—-	Of Tagetes erecta
1302 19 36	—-	Of Terminalia bellirica
1302 19 37	—-	Of Curcuma longa
1302 19 38	—-	Of Zingiber officinale
1302 19 39	—-	Other

On a combined reading of the tariff structure and the General Rules for Interpretation of the Customs Tariff, once the goods arc determined to be “extracts”, classification is required to he examined within the specific “Extracts” branch under sub-heading 1302 19. Since Kcranat is admittedly an extract and is not specifically covered under tariff items 1302 19 11 to 1302 19 38, the appropriate residual entry within the extract category would necessarily he tariff item 1302 19 39. Resort to the broader residual entry 1302 19 90 would arise only where the product is not classifiable within the specific extract branch itself.

2.4.13 The description of goods under entries 13021911 to 13021938 does not match Kcranat. as it is a composite extract made by combining two distinct plant extracts, namely millet and wheat. The entries under tariff items 1302 19 50 and 1302 19 60 specifically relate to 6shew Shell Liquid (“CNSL”) and purified/distilled Cardanol respectively and therefore are clearly distinguishable from the subject goods, which are vegetable extracts derived from millet and wheat. Further, Keranat is not specifically covered by any of the named extract entries under tariff items 1302 19 11 to 1302 19 38 and is therefore appropriately classifiable under the residual extract entry.

Further, the subject goods arc not marketed, traded or understood in the industry as edible oils, nutritional food preparations, medicaments, essential oils, oleoresins or chemical preparations. The intended usage, product literature, manufacturing process and composition consistently establish that the essential character of the product remains that of a compound vegetable extract derived from millet and wheat.

2.4.14 ‘1’lic following arc the further triple dash (—) entries under sub-heading 1302 19 and appearing at the same hierarchical level as the triple dash entry “Extracts:”

Tariff Item	Description
1302 19 50	Cashew shell liquid (CNSL), crude
1302 19 60	Purified and distilled CNSL (Cardanol)
1302 19 90	Other

Thus, once the subject goods are identified as “extracts”, classification appropriately falls for consideration within the “Extracts” branch itself. Since Keranat is not specifically covered by tariff items 1302 19 11 to 1302 19 38, the applicable residual entry within the extract category would he tariff item 1302 19 39.

2.4.15 In light of the above, Keranat is classifiable under tariff item 1302 19 39, i.e. the residual entry covering “Other” extracts under Heading 1302. The said tariff item specifically caters to vegetable extracts not elsewhere specifically enumerated under tariff items 1302 19 11 to 1302 19 38. It is also relevant that tariff item 1302 19 39 was specifically introduced as the residual four-dash entry under the “Extracts” category pursuant to the tariff restructuring effective from 1 May 2026. The amended tariff structure clearly evidences the legislative intent to separately identify residual extract products falling within I leading 1302. Keranat squarely falls within such residual extract entry.

2.4.16 The Explanatory Notes issued by the World Customs Organization (“WCO”) to CTH 1302 state as under:

“(A) Vegetable saps and extracts.

The heading covers vegetable saps (vegetable products usually obtained by natural exudation or incision) and extracts (vegetable products extracted from the original vegetable material by solvents), provided that they arc not specified or included in more specific headings of the Nomenclature. These saps and extracts differ from the essential oils, retinoids and extracted oleoresins of heading 33.01, in that, apart from volatile odoriferous constituents, they contain a far higher portion of other plant substances (e.g., chlorophyll, tannins, bitter principles, carbohydrates and other extractive matter).

The saps and extracts classified here include:

(1) Opium, the dried sap of the unripe capsules of the poppy (Papaya somniferous) obtained by incision of, or by extraction from, the stems or seed pods. It is generally in the form of balls or cakes of varying size and shape. However, concentrates of poppy straw containing not less than 50% by weight of alkaloids are excluded from this heading (see Note 1(I) to this Chapter),

(2) Liquor ice extracted from the dried roots of a plant of the Lcguniinosac family (Glyeyrrhizalabra) by hot water under pressure and then concentrated. It may be in liquid form or in locks, cakes, sticks, slices or powder. (Liquor ice containing more than 10% by weight of sucrose, or put up (i.e.:, prepared) as confectionery whatever the sugar content, is excluded, vie heading 17.04)

(3) Extract of hops.

(4) Pyrethrum extract, obtained mainly from the flowers of various pyrethrum varieties (e.g„ Chrysanthemum cinerariaelblium) by extraction with an organic solvent such as normal hexane or “petroleum ether”.

(5) Extracts of the roots of plants containing rotenone (derris, cube, limbo, barbasco, ).

(6) Extracts and tinctures of any plant of the genus Cannabis resin, whether crude or purified, is excluded (heading 13.01).

(7) Ginseng extract, obtained by water or alcohol extraction, whether or not put up for retail sale. Mixtures of ginseng extract with other ingredients (e.g., lactose or glucose) used for the preparation of ginseng “tea” or beverage arc excluded (heading 21.06).

(8) Aloes,. a thickened sap with a very bitter taste, obtained from several varieties of the plant with the same. name (Liliaceae family).

(9) Podophyllum, a resinous substance extracted by alcohol from the dried rhizomes of Podophyllum peltatuin.

(10) Curare, an aqueous extract from the leaves and hark of various plants of the Strychnos

(11) Quassia amara extract, obtained from the wood of the shrub ol’ the same name (Shnaroubaceae family), ‘which grows in South America. Quassin, the principal bitter extract of the wood of the Quassia amara, is a heterocyclic compound of heading 29.32.

(12) Other medicinal extracts, e.g. belladonna, black alder (alder buckthorn), cascara sagrada, garlic, gentian, jalap, cinchona, rhubarb, sarsaparilla, tamarind, valerian, pine buds, colocynth, male fern, witch hazel, henbane, ergot of rye.

(13) Manna, a solid, sweet sap obtained by incision from certain varieties of ash tree.

(14) Bird lime, the viscous and stringy glue, greenish in colour, extracted from mistletoe berries or holly.

(15) Aqueous extract obtained from cassia pulp. Cassia pods and cassia pulp arc, however, excluded (heading 12.11).

(16) Gum kino, a thickened sap of certain tropical trees used in tanning and medicine.

(17) Japan (or Chinese) lacquer (natural lacquer), a sap obtained by incision from certain species of shrubs known as rims (urushi) growing in the Far East (e.g., Rhux vernicilera). It is used for coating or decorating various articles (trays, chests. etc.).

(18) Papaw juice, whether or not dried, but not purified as papain enzyme. (The agglomerated latex globules can still be observed on microscopic examination.) Papain is excluded (heading 35.07).

(19) Cola (kola) extract, obtained from cola nuts (seeds of various Cola species, e.g., (.’ola nitida) and used mainly in the manufacture of certain beverages.

(20) Cashew nutshell extract. The polymers of cashew nutshell liquid extract are, however, excluded (generally heading 39.11).

(21) Vanilla oleoresin (sometimes erroneously known as “vanilla resinoid” or “vanilla extract”).

2.4.17 Since the active ingredients, i.e. millet and wheat extract arc both extracted from their seeds, they arc vegetable extracts. The fact that extracts of nuts and seeds also arc considered as ‘vegetable saps and extracts’ (sec Sr. Nos. 19 and 20 above) further reinforces the view that Keranat, a mixture of millet and wheat extract, would fall under CTII 1302. However, the said product does not fall into the above category of vegetable saps and extracts covered from Sr. Nos. l to 21 above.

2.4.18 The abovcmcntioncd explanatory note further states that:

“Saps arc usually thickened or solidified. Extracts may be in liquid, paste or solid form. ‘Tinctures’ arc extracts still dissolved in the alcohol by means of which they are extracted; the so-called ‘fluid extracts’ arc solutions of extracts in, for example, alcohol, glycerol or mineral oil. Tinctures and fluid extracts arc generally standardised (for instance, pyrethrum extract may be standardised by adding mineral oil to produce commercial grades with a standard pyrcthrins 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 arc added to opium in order to obtain a product containing a known portion of morphine). The addition of such substances does not affect the classification of these solid extracts. However, extracts may not be subjected to additional extraction cycles or to purification processes, such as chromatographic purification, that increase or decrease certain compounds or compound classes to a degree that cannot be achieved solely by means of initial solvent extraction. Extracts may be simple or compound. Simple extracts arc obtained by the treatment of only one variety of plant. Compound extracts are obtained either by mixing simple extracts or by treating mixtures of different varieties of plants. Compound extracts (whether in the form of alcoholic tinctures or in any other forms) therelbre contain the constituents of several kinds of plant; they include compound jalap extract, compound extract of aloes, compound extract of cinchona, etc.”

2.4.19 As stated above, Keranat is a mixture of Millet seed extract (millet seed extract) and wheat extract (wheat extract). Keranat consists of about 89.93% of standardized Millet seed extract, 10% Wheat extract and 0.07% of Rosemary Leaves extract. The mixture is standardized by addition of cold pressed sunflower seed oil. Accordingly, Keranat qualifies as a combined extract obtained by blending Millet seed extract, wheat extract and rosemary leaves extract and standardized by mixing cold pressed sunflower seed oil as excipient.

2.4.20 The explanatory notes further state as under:

“The vegetable saps and extracts of this heading are generally raw materials for various manufactured products. They arc 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 (e.g. liquid-liquid extraction) following initial extraction.”

[Emphasis Added]

2.4.21 Keranat is a compound extract derived from millet and wheat, dissolved or carried in sunflower oil, and not subjected to further purification or additional extraction cycles. The formulation is consistent with the definition of fluid or compound extracts. The use of sunflower oil is as an inert carrier and not as an active ingredient.

2.4.22 Keranat is a vegetable extract in oil form sold to third party manufacturers where it is Further processed in form of tablets with added supplements before it is sold to end consumers through other marketing companies. Keranat as an ingredient of these final product helps in preventing hair loss and promotes hair growth. Such downstream use is irrelevant for classification purposes, which must be determined based on the condition of the goods at the time of import. The addition of sunflower seed oil does not give Keranat a character of food preparations or medicines. Keranat also does not undergo the relining or purifying process as mentioned above. And finally, Keranat is used as a raw material for manufacture of nutraceutical tablets used for hair care.

2.4.23 Accordingly, Keranat qualifies as a compound vegetable extract with sunflower seed oil blended for standardization only.

2.5 Whether the addition of cold pressed sunflower seed oil (CPSO) would give the character of food preparation or medicament to Keranat.

2.5.1 Law is trite that classification of goods under the Customs Tariff arc based on its composition and characteristics at the time of import into India and not based on the ultimate end use. Therefore, even if the end use of Kcranat would be for Keranat after further processing, the classification would depend on its constituents at the time of import.

2.5.2 CPSO is added to the mixture of^–Millet seed extract and wheat extract as an excipient to standardize the mixture. As such, addition of CI’S() does not alter the properties• of Keranat and does not make it a food preparation or medicament. Keranat further undergoes other processes and is consumed as tablets for hair care. Therefore, a view can be taken that use of CPSO as an excipient does not alter the properties of Keranat and make it a food preparation or a medicament.

2.5.3 In terms of Rule 3(b) of the General Rules for the Interpretation of the Customs Tariff where goods consist of a^–mixture or combination of different materials, classification shall be determined by the material or component which gives the goods their essential character. In the present case, the essential character of Keranat is imparted by the millet seed extract and wheat extract, which constitute the active ingredients of the product, whereas cold pressed sunflower seed oil is merely an excipient used for standardisation. Accordingly, the presence of sunflower oil does not alter the classification of Keranat as a vegetable extract under I leading 1302.

2.5.4 The WCO Explanatory Note to CFII 1302 states as under:

“Certain products of this heading, which are regarded as narcotic drugs under international instruments, are indicated in the list appearing at the end of Chapter 29.

Examples of excluded preparations arc:

(i) Flavoured syrups containing vegetable extracts (heading 21.06).

(ii) Preparations used for making beverages.. These preparations are obtained by compounding vegetable extracts of this heading with lactic acid, tartaric acid, citric acid, phosphoric acid, preserving agents, foaming agents, fruit juices, etc., and sometimes with essential oils. The preparations thus obtained arc generally classified in heading 21.06 or 33.02.

(iii) Medicinal preparations (some of which arc also known as “tinctures”) consisting of mixtures of vegetable extracts with other products (e.g., preparations which consist of a mixture of extract of capsicum, spirits of turpentine, camphor and methyl salicylate, 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 pyrethrin’s 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 purposes. 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.”

2.5.5 Given the understanding as detailed above, Kcranat does not appear to be pectic substances, pectinates and pectates/agar-agar and mucilage’s and thickeners, whether or not modified, derived from vegetable products as per below explanatory notes to CTH 1302.

“(B) Pectic substances, pectinates and pectates.

Pectic substances (generally known in commerce as “pectin’s”) are polysaccharides, the basic structure of which consists of polygalacturonic acids. They occur in the cells of plants, particularly fruit and vegetables, and arc commercially extracted from the residues of apples, pears, quinces, citrus fruit, sugar beet, etc. Pectin’s are mainly used as “setting” agents in the preparation of jam and other preserves. They may be liquids or powders, and are classified in this heading whether or not standardised by the addition of sugars (glucose, sucrose, etc.) or other products (in order to ensure a constant activity in use). They sometimes contain sodium citrate or other buffer salts.

Pectinates arc salts of pectinei acids (partially methoxylated polygalacturonic acids) and pectates are salts of pectic acids (demethylated pectinic acids). They have much the same properties and uses as pectins.

(C) Agar-agar and other mucilages and thickeners, whether or not modified, derived from vegetable products.

Mucilage’s and thickeners, derived from vegetable products, swell in cold water and dissolve in hot, forming a homogeneous, gelatinous and generally tasteless mass on cooling. They are chiefly used as alternatives to gelatin in the preparation of food, in the manufacture o textile or paper dressings, to clarify certain liquids, for bacterial culture, in pharmacy and in the manufacture of cosmetics, They may be modified by chemical treatment (for example. esterified. etherified, treated with borax, acids or alkalis).

These products remain classified in this heading whether or not standardized by the addition of sugars (glucose, sucrose, etc.) or other products (in order to ensure a constant activity in use).

The most important are:

(1) Agar-agar (or agar) obtained by extraction from certain marine algae found mainly in the Tndian and Pacific Oceans, and usually presented in the Ibrm of dried fibres, flakes, powder or in a gelatinous form obtained by treatment with acids. It is commercially known as “gelose” and also as Japanese vegetable gelatin (or moss) or Alga spinosa.

(2) Endosperm flour of locust beans (Ceratonia siliqua) or guar seeds (Cyamopsis psoraloides or (. yamopsis ietragonoloba). These flours are included in this heading, whether or not modified by chemical treatment in order to improve or stabilised their mucilaginous properties (viscosity, solubility, etc.).

(3) Carrageenan extracted from carragecn (known also as Irish moss or pearl moss) and usually in the form of fibrous threads, flakes or powder. .(‘he heading also includes mucilaginous substances obtained from carrageenan by chemical transformation (e.g., “sodium carrageenatc”).

(4) Thickeners obtained from gums or gum-resins rendered water-soluble by treatment with water under pressure or by any other process.

(5) Cotyledon flour of tamarind seeds (lamarindus indica). These flours are included in this heading even if modified by heat or chemical treatment.

The heading excludes:

(a) Raw or dried seaweed and other algae (generally heading 12.12).

(b) Alginic acid and alginates (heading 39.1.3).

2.6 Whether Keranat is classifiable under CTH 1512 or 1515

2.6.1 CTH s 1512 and 1515 fall under Chapter 15 which covers ‘animal, vegetable or microbial fats and oils and their cleavage products: prepared edible fats; animal or vegetable waxes’.

2.6.2 Notes to Chapter 15 states as under:

“1. This Chapter does not cover:

(a) pig fat or poultry fat of heading 0209;

(b) cocoa butter, fat or oil (heading 1804);

(c) edible preparations containing by weight more than 15% of the products of heading 0405 (generally Chapter 21);

(d) greaves (heading 2301) or residues of headings 2304 to 2306;

(e) fatty acids, prepared waxes, medicaments, paints, varnishes, soap, perfumery, cosmetic or toilet preparations, sulphonated oils or other goods of Section VI; or

(f)^.factice derived from oils (heading 4002).

2. heading 1509 does not apply to oils obtained from olives by solvent extraction (heading 1510).

3. Heading 1518 does not cover fats or oils or their fractions, merely denatured, which are to be classified in the heading appropriate to the corresponding =denatured fats and oils and their fractions.

4. Soap-stocks, oil foots and dregs, stearin pitch, glycerol pitch and wool grease residues fall in heading 1522.”

2.6.3 Chapter 15 inter cilia covers animal or vegetable or microbial fats and oils and their cleavage products. Microbial oil consists of the intracellular storage lipids, triacylglycerol’s. It is similar to vegetable oil, another biologically .produced oil. They arc produced by oleaginous microorganisms, which is the term for those bacteria. molds, algae and yeast, which can accumulate 20% to 80% lipids of their biomass.. The accumulation of lipids take place by the end of logarithmic phase and continues during station phase until carbon source begins to reduce with nutrition limitation (https://en.wikilledia.orgLwiki/Microbial oil). Similarly, animal oil/fats are lipids derived from animals which are used by the animal for a multitude of functions, or can be used by humans for dietary, sanitary, and cosmetic purposes. Depending on the temperature of the fat, it can change between a solid state and a liquid (oil) state. Chemically, both fats and oils are composed of triglycerides. Although many animal parts and secretions may yield oil, in commercial practice, oil is extracted primarily from rendered tissue fats from livestock animals like pigs, chickens and cows. Dairy products yield animal fat and oil products such as butter (https://en.wikipedia.org/wiki/Animal fat). Cleavage product in this context means a substance resulting from the splitting of a molecule into two or more simpler molecules (Cleavage product definition of cleavage product by Medical dictionary).

2.6.4 Going by the composition of Keranat, it does not qualify to be animal or microbial fat or oil or their cleavage product. To determine whether it qualifies to he vegetable oils fat or its cleavage product, a perusal of WC() explanatory notes to Chapter 15 can he perused.

2.6.5 The WCO Explanatory Notes to Chapter 15 states as under:

“With the exception of sperm oil and jojoba oil, animal, vegetable or microbial fats and oils are esters of glycerol with Nay acids (such as palmitic, stearic and oleic acids). They may be either solid or fluid, but are all lighter than water. On Fairly long exposure to air they become rancid due to hydrolysis and oxidation. When heated they decompose, giving oil an acrid. irritant dour. They arc all insoluble in water, but completely soluble in diethyl ether, carbon disulphide, carbon tetrachloride, benzene, etc. Castor oil is soluble in alcohol but the other animal, vegetable or microbial fats and oils are only slightly soluble in alcohol. They all leave a persistent greasy stain on paper. The esters forming triglyceride fats can be broken up (saponification) by the action of superheated steam, dilute acids, enzymes or catalysts, giving glycerol and fatty acids, or by the action of alkalis, which give glycerol and the alkali salts of fatty acids (soaps).

Subject to the exclusions in Note 1 to this Chapter, animal. vegetable or microbial fats and oils and their fractions arc classified in this Chapter whether used as foodstuffs or for technical or industrial purposes (e.g. the manufacture of soap, candles, lubricants, varnishes or paints).

(B) Vegetable or animal waxes consist essentially of the esters of certain higher fatty acids (palmitic, cerotic, myristic) with certain alcohols other than glycerol (acetyl, etc.). They contain a certain proportion of^–their acids and alcohols in the free state, and also some hydrocarbons. These waxes do not yield glycerol on hydrolysis and on heating they do not give di the acrid odor of fats and do not become rancid. Waxes are generally harder than rats.

Headings 15.07 to 15.15 of this Chapter cover the single (i.e., not mixed with fats or oils of another nature), fixed vegetable or microbial fats and oils mentioned in the headings. together with their fractions, whether or not refined, but not chemically mode lied.

Vegetable fats and oils occur widely in nature and are bund in the cells of certain parts of plants (e.g., seeds and fruit). from which they are extracted by pressure or by means of solvents. The vegetable or microbial fats and oils classified in these headings arc fixed fats and oils – i.e., fats and oils which cannot easily be distilled without decomposition, which arc not volatile and which cannot be carried off by superheated steam (which decomposes and saponifies them).

With the exception of, e.g., jojoba oil, vegetable fats and oils arc mixtures of glycerides. but whereas palmitic and stearic glycerides, which are solid at room temperature, predominate in solid oils, fluid oils are mainly composed of glycerides which are liquid at room temperature (glycerides of oleic acid, linoleic acid, linolenic acid, etc.). Microbial fats and oils are also mixtures of glycerides mainly of polyunsaturated fatty acids such as arachidonic acid and linoleic acid, which are liquid at room temperature. These headings cover crude fats and oils and their fractions, as well as those which have been refined or purified, e.g., by clarifying, washing, filtering, dccolourising, deacidifying or deodorizing.

The vegetable fats and oils covered by these headings arc mainly obtained from the oil seeds and oleaginous fruits of the headings 12.01 to 12.07, but may also be obtained from vegetable materials classified elsewhere (e.g.: olive oil, oils obtained from the kernels of peaches, apricots or plums of heading 12.12, oils obtained from almonds, walnuts, pignolia nuts, pistachio nuts, etc., of heading 08.02, oil obtained from germ of cereals).

2.6.6 Thus, vegetable oil/it classifiable under Chapter 15 are typically esters of glycerol with fatty acids (such as palmitic, stearic and oleic acids), should be used as food stuffy or for technical or industrial purposes (e.g., the manufacture of soap, candles, lubricants, varnishes or paints). While Kcranat has presence of oleic acids, it is not an ester of glycerol. Further, vegetable fats and oils covered by headings under Chapter 15 arc mainly obtained from the oil seeds and oleaginous fruits or CTIIs 1201 to 1207, or from vegetable materials classified elsewhere (e.g.: olive oil, oils obtained from the kernels of peaches, apricots or plums of CT111212, oils obtained from almonds, walnuts, pignolia nuts, pistachio nuts, etc., of col 0802, oil obtained from germ of cereals).

2.6.7 Millet seed extract which is the active ingredient in Kcranat constitutes around 60% of its composition followed by sunflower seed oil (29.93%) which is used for standardization of millet seed extract. However, Millet seed extract or wheat extract do not satisfy the parameters of goods falling under Chapter 15 because it is not an ester of glycerol with fatty acids (such as palmitic, stearic and oleic acids). However, given that sunflower seed oil is the second highest ingredient in Kcranat, it is necessary to see whether Kcranat would qualify to be classified under CHI 1512 especially since it covers sunflower seed oil. CTII 1512 covers the following goods:

HS Code	Description
1512	Sunflower-seed, safflower or cotton-seed oil and their fractions thereof, whether or not refined but not chemically modified
1512 11	Sunflower seed or safflower oil and fractions thereof
1512 11 10	Sunflower seed oil
1512 11 20	Safflower seed oil (kardi seed oil)
1512 19	Other
1512 19 10	Sunflower oil, edible grade
1512 19 20	Sunflower oil, non-edible grade (other than crude oil)
1512 19 30	Safflower oil, edible grade
1512 19 40	Safflower oil, non-edible grade
1512 19 90	Other
—	Cotton-seed oil and its fractions
1512 21 00	Crude oil, whether or not gossypol has been removed
1512 29	Other
1512 29 10	Edible grade
1512 29 90	Other

2.6.8 As per WCO Explanatory Notes to Heading 1512, sunflower seed oil is the oil obtained bill the common sunflower (Ilelianthus animus) and is a light golden-yellow oil. It is used as a salad oil and in margarine and lard substitutes. The oil has semi-drying properties which render it useful in the paint or varnish industries. he product Keranat does not qualify to be used as salad oil or other preparations mentioned above. Also, sunflower seed oil present in Keranat is used as an excipicnt to standardize the mixture of Keranat. Therefore, it can be said that Keranat does not qualify to be classified under CHI 1512.

2.6.9. CTH 1515 covers the following goods:

Tariff Item	Description
1515	OTHER FIXED VEGETABLE OR MICROBIAL FATS AND OIL (INCLUDING JOJOBA OIL) AND THEIR FRACTIONS, WHETHER OR NOT REFINED, BUT NOT CHEMICALLY MODIFIED
1515 11 00	Linseed oil and its fractions:
1515 11 00	Crude oil
1515 19	Other:
1515 19 10	Edible grade
1515 19 90	Other
1515 21 00	Maize (Corn) oil and its fractions:
1515 21 00	Crude oil
1515 29	Other:
1515 29 10	Edible grade
1515 29 90	Other
1515 30	Castor oil and its fractions:
1515 30 10	Edible grade
1515 30 90	Other
1515 50	Sesame oil and its fractions:
1515 50 10	Crude oil
1515 50 90	Other:
1515 50 91	Edible grade
1515 50 99	Other
1515 60 00	Microbial fats and oils and their fractions
1515 90	Other:
1515 90 10	Fixed vegetable oils, namely the following: chul moogra oil, mawra oil, kokam oil, tobacco seed oil, sal oil
1515 90 20	Fixed vegetable oils, namely the following: neem seed oil, karanj oil, silk cotton seed oil, khakhon oil, water melon oil, kusum oil, rubber seed oil, dhup oil, marati oil, pisa oil, nahar oil
1515 90 30	Fixed vegetable oils, namely the following: cardamom oil, chilies or capsicum oil, turmeric oil, await seed oil, Niger seed oil, garlic oil
1515 90 40	Fixed vegetable oils of edible grade namely the following: mango kernel oil, mahua oil, rice bran oil
1515 90 91	Edible grade
1515 90 99	Other

2.6.10. Keranat, the active ingredient of which is millet seed extract, does not qualify to be classified under the sub-headings of 1515 which^–cover linseed oil and its fractions, maize (corn) oil and its Iiactions, castor oil and its fractions or sesame oil and its fractions. Further, Keranat apparently also does not qualify to be microbial fats and oils and their fractions. Therefore, Keranat does not appear to be classifiable under CTI1 1515 also.

2.6.11 ^.11c Keranat is in the lbrm of oil as the sunflower oil serves as excipicnt for the millet seed extract and wheat extract. The sunflower oil in the Kcranat is neither the principal use nor intended use’of the product but merely serves as cxcipicnt of the other Vegetable/plant extract i.c., millet and wheat extracts. The Apex court in the Commissioner of^–Central Excise, Delhi-III vs. 44/s. UNI Products India Ltd (2020(372) E.I,.T 465 (S’C’)), noted that the “common parlance test”, “marketability test”, “popular meaning test” are all tools for interpretation to arrive at a decision on proper classification of a tariff entry. In the instant case, Keranat, which is Millet seed extract made out of millet seed extract is not marketable or known in the commercial/common parlance or in the popular meaning in the market, as vegetable oil, refined or crude.

2.6.12 While Keranat has sunflower oil in its composition constituting 29.93% content in the total composition of Keranat, sunflower seed oil merely acts as an excipient and not as a primary or intended use ingredient. Therefore, it cannot be classified under Chapter 15 or its headings.

2.7 Whether Kcranat is in the nature of a miscellaneous edible preparation and hence classifiable under CTII 2106.

2.7.1 Chapter 21 covers ‘miscellaneous edible preparations’ and CTII 2106 deals with food preparations. not elsewhere specified or included’. Note 5 to Chapter 21 states that:

^–5. Heading 2106 (except 2106 90 20 & 2106 90 30), inter alia, includes:

(a) Protein concentrates and textured protein substances;

(b) Preparations for use, either directly or after processing (such as cooking, dissolving or boiling in water, milk or other liquids), for human consumption;

(c) Preparations consisting wholly or partly of foodstuffs, used in the making of beverages or food preparations for human consumption;

(d) Powders for table creams, jellies, ice-creams and similar preparations, whether or not sweetened;

(e) Flavouring powders for making beverages, whether or not sweetened;

(f) Preparations consisting of tea or coffee and milk powder, sugar and any other added ingredients;

(g) Preparations (for example, tablets) consisting of saccharin and foodstuff, such as lactose, used for sweetening purposes;

(h) Pre-cooked rice, cooked either fully or partially and their dehydrates; and

(i) Preparations for lemonades or other beverages, consisting, for example, of flavoured or coloured syrups, syrup flavoured with an added concentrated extract, syrup flavoured with fruit juices and concentrated fruit juice with added ingredients.

6. Sub-heading 2106 90 99 includes sweet meats commonly known as “Misthans” or “Mithai” or by any other name. They also include products commonly known as “Narnkeens”, “mixtures”, “Bhujia”, “Chabena” or by any other name. Such products remain classified in these sub-headings irrespective of the nature of their ingredients.”

2.7.2 CTH 12106 and sub-headings/tariff items below 2016 arc as below:

HSN Code	Description
2106	FOOD PREPARATIONS, NOT ELSEWHERE SPECIFIED OR INCLUDED
2106 10 00	Protein concentrates and textured protein substances
2106 90	Other
2106 90 11	Sharbat
2106 90 19	Other
2106 90 20	Pan masala
2106 90 30	Betel nut product known as “Supari”
2106 90 40	Sugar-syrups containing added flavouring or colouring matter, elsewhere specified or included; lactose syrup; glucose syrup and maltodex syrup
2106 90 50	Compound preparations for making nonalcoholic beverages
2106 90 60	Food flavouring material
2106 90 70	Churna for pan
2106 90 80	Custard powder
2106 90 91	Diabetic foods
2106 90 92	Sterilized or pasteurized millstone
2106 90 99	Other

2.7.3 Based on the above the subject goods do not appear to be eligible to be called as protein concentrates and textured protein substances as envisaged under CTH 21061000.

2.7.4 Proceeding to the next single dash (-) entry 210690 “Others” it could be seen that tariff items from 21069011 to 21069080 and also the remaining tariff items 21069091 and 21069092 is not relevant for Keranat, leaving only the last residual entry 21069099 in ‘contention.

2.7.5 The WCO Explanatory Notes to CT11 2106 state that:

(A) “Provided that they are not covered by any other heading of the Nomenclature, this heading covers:

(B) Preparations for use, either directly-or after processing (such as cooking, dissolving or boiling in Water, milk, etc..), for human consumption.

Preparations consisting wholly or partly of foodstuffs, used in the making of beverages or food preparations for human consumption. The heading includes preparations consisting of mixtures of chemicals (organic acids, calcium: salts, etc.) with foodstuffs (flour, sugar, milk powder, etc.), for incorporation in food preparations either as ingredients or to improve some of their characteristics (appearance, keeping qualities, etc.) (sec the General Explanatory Note to Chapter 38).

However, the heading does not cover enzymatic preparations containing foodstuffs (e.g., meat tenderisers consisting of a proteolytic enzyme with added dextrose or other foodstuffs). Such preparations fall in heading 35.07 provided that^–they arc not covered by a more specific heading in the Nomenclature.”

2.7.6 It could therefore be discerned that goods would^–be classifiable under CM 2106 only if they arc not covered by any other heading under the Customs Tariff Further, Keranat also does not appear to fall under the category of preparations for direct use as a food preparation. Keranat further undergoes other processes so as to be used as a nutraceutical. The process involved in -manufacturim of such nutraceutical is not akin to simple cooking, dissolving, boiling in water, milk etc. which arc normal processes used for making the product fit for hunian consumption.

2.7.7 The phrase “after processing” in the explanatory note to Chapter 21 should be read ejusdem generis, i.e., of the same nature, with the examples that arc akin to, “cooking, dissolving or boiling in water. milk, etc.” These examples in the explanatory note indicate that processing include simple household-level preparation ibr consumption, not industrial or chemical processing such as extraction, purification, or modification of ingredients.

2.7.8 Subject to the technical aspects and interpretations, the only entry where Keranat may prima facie be arguably considered for classification under Chapter 21 could be 21069099. Supplementary Note 6 of Chapter 21 is an indication of nature of products that arc covered in the said entry. It states that the said tariff item included sweet meats commonly known as “misthans” or “mithai” or called by any other name. They also include products commonly known as “namkeens”, “mixtures”, “bhujia”, “chalema” or called the any other name. The said tariff item covers residual of residual items which arc not covered under any specific tariff entry under the said chapter, and the supplementary note gives the general indication, though not full scope, of the said tariff entry. However, it would be important to note that the items covered under the residual entry should also reflect the nature of the product covered under the chapter i.e., food preparations.

2.7.9 Prima facie, Keranat does get covered in any of the items indicated in the Supplementary Note 6 to Chapter 21 and the following category of goods mentioned in the explanatory notes to CTII 2106:

“(14) Products consisting of a mixture of plants or parts of plants (including seeds or fruits) of different species or consisting of plants or parts of plants (including seeds or fruits) of a single or of different species mixed with other substances such as one or more plant extracts, which are not consumed as such, but which are of a kind used for making herbal infusions or herbal “teas”, (e.g., those having laxative, purgative, diuretic or carminative properties), including products which arc claimed to offer relief from ailments or contribute to general health and well-being.

The heading excludes products where an infusion constitutes a therapeutic or prophylactic dose ofan active ingredient specific to a particular ailment (heading 30.03 or 30.04). The heading also excludes such products classifiable in heading 08_13 or Chapter 9.

(15) Mixtures of’ plants, parts of plants, seeds or fruit (whole, cut, crushed, ground or powdered) of species falling in different Chapters (e.g., Chapters 7, 9, 11, 12) or of different species falling in heading 12.11, not consumed as such, hut of a kind used either directly for flavouring beverages or for preparing extracts for the manufacture of beverages.

However, products of this type whose essential character is given by their content of species falling within Chapter 9 are excluded (Chapter 9).

(16) Preparations, often referred to as food supplements or dietary supplements, consisting of, or based on, one or more vitamins, minerals, amino acids, concentrates, extracts, isolates or the like of substances found within foods, or synthetic versions of such substances, put up as a supplement to the normal diet. It includes such products whether or not also containing sweeteners, colours, flavours, odoriferous substances, carriers, fillers, stabilisers, or other technical aids. Such products are often put up in packaging with indications that they maintain general health or well-being, improve athletic performance, prevent possible nutritional deficiencies or correct sub-optimal levels of nutrients.

These preparations do not contain a sufficient quantity of active ingredients to provide therapeutic or prophylactic effect against diseases or ailments other than the relevant nutritional deficiencies. Other preparations with a sufficient quantity of active ingredient to pro k ide a therapeutic or prophylactic effect against a specific disease or ailment arc excluded (heading 30.03 or 30.04).

(17) Preparations in the form of granules or powders consisting of sugar, flavouring or colouring matter (e.g., plant extracts or certain fruits or plants such as orange, blackcurrant, etc.), antioxidants (e.g., ascorbic acid or citric acid or both), preserving agents, etc., of a kind used for making beverages.” However, preparations which have the character of sugar fall in heading 17.01 or 17.02, as the case may be.”

2.7.10 Keranat, a vegetable extract, is not a herbal infusion or tea as detailed in Note 14 above. Further, it is neither a flavouring beverage nor used for preparing extracts for manufacture of beverages as detailed in Note 15. Although, Keranat is used for manufacture of nutraceutical, it does not fall under category of food supplements or dietary supplements, consisting of, or based on, one or more vitamins, minerals, amino acids, concentrates, extracts, isolates or the like of substances found within foods, or synthetic versions of such substances, put up as a supplement to the normal diet as detailed in Note 16. It also does not fall under the purview of Note 17 above as granules or powders consisting of sugar, flavouring or colouring matter (e.g., plant extracts or certain fruits or plants such as orange, blackcurrant, etc.), antioxidants (e.g., ascorbic acid or citric acid or both), preserving agents, etc., of a kind used for making beverages.

2.7.11 Given the above, Keranat does not fall under the category identified in the explanatory notes to c^–rn 2106 and hence will not fall under the same heading.

2.8 Whether Keranat is in the nature of pharmaceutical products and hence classifiable under CTH 3003 or 3004.

2.8.1 CTH 3003 and 3004 fall under Chapter 30 which covers ‘pharmaceutical products’. CTH 3003 and 3004 cover the following goods:

Chapter Heading	Description of goods
3003	Medicaments (excluding goods of heading 3002, 3005 or 3006) consisting of two or more constituents which have been mixed together for therapeutic or prophylactic uses, not put up in measured doses or in forms or packings for retail sale
3004	Medicaments (excluding goods of heading 3002, 3005 or 3006) consisting of mixed or unmixed products for therapeutic or prophylactic uses, put up in measured doses (including those in the form of transdermal administration systems) or in forms or packings for retail sale

2.8.2 Thus, goods falling under CTI Is 3003 should primarily satisfy the following conditions:

(i) Medicaments;

(ii) Mixed or unmixed products; and

(iii) For therapeutic or prophylactic uses.

The term ‘medicament’ as defined in the Oxford Dictionary is “a drug or another form of medicine that one takes to prevent or to treat an illness; treatment involving drugs”; as per McMillan Dictionary it is “a substance used for treating an illness or injury”, as per Collins Dictionary it is “a medicine or remedy in a specified formulation”. The American Heritage Medical Dictionary defines it as “An agent that prompts recovery from injury or ailment; a medicine”.

2.8.3 CTH 3004 is applicable for the products that are medicaments meant for consumption in measured doses (including those in the form transdermal administration system) or in forms or packings for retail sale. Keranat is not meant for direct consumption in measured doses or sold to the customers in retail sale directly. It is processed further to manufacture tablets which arc typically consumed as supplements for hair care. Therefore, heading 3004 cannot be applicable for Keranat and only CTII 3003 could be relevant to be analysed in the context of said classification.

2.8.4 The Hon’ble Supreme Court in ICPA Health Products (P) Ltd. vs. Commissioner of Central Excise, Vadodara 2004 (167) E.I..T.20 (20), has inter ilia held that if a product comprises of two or more constituents which have been mixed together for therapeutic or prophylactic uses, then it would be a medicament. Referring to Concise Oxford Dictionary, 9th Edition, the Court further held that the term “prophylactic” would mean “intending to prevent diseases, a preventive medicine or course of action”.

2.8.5 World Health Organisation (‘WHO’), defines medicine as “the sum total of the knowledge, skills,. and practices based on the theories, beliefs, and experiences indigenous to different cultures, whether explicable or not, used in the maintenance of health as well as in the prevention, diagnosis, improvement or treatment of physical and mental illness.^— In other words, to determine whether or not a product or a formulation is to he labelled as a ‘medicament’ it is necessary to consider its efficacy in treating or remedying an ‘injury’, an ailment’ or an ‘illness’.

2.8.6 Miller-Keane Encyclopaedia and Dictionary of Medicine, Nursing, and Allied 1 lealth, Seventh Edition defines “injury” as “harm or hurt; usually applied to damage inflicted on the body by an external force”. Farlex Partner Medical Dictionary defines “injury” as “damage or wound of trauma”. Collins Dictionary of Medicine defines it as, “Any permanent or semi­permanent disturbance of structure or function of any part body caused by an external agency. Such agency may be mechanical, thermal, chemical, electrical or radiational. The term may also be applied to damage caused by infecting organisms or to psychological trauma”. Again, in medical terms, ‘illness’ or ‘ailment’ is often defined as “a physical or mental disorder” I American Heritage Medical Dictionary’, or “A complaint disease or physical disorder” Warlex Partner Medical Dictionary I.

2.8.7 in the case of Commissioner of Central Excise vs. Al/s. Glens Laboratories^. 2013 (8) TMI 467, it was inter alia held by the Hon’ble Supreme Court that even i f a product constitutes pharmaceutical ingredients having therapeutic or prophylactic properties, it will not he construed as a ‘medicament’ covered under CFI i 3003, if it is not used primarily for curing or treating ailments or diseases. Relevant extract of the judgment is reproduced below for case of reference:

“Firstly, when a product contains pharmaceutical ingredients that have therapeutic or prophylactic or curative properties, the proportion of such ingredients is not invariably decisive. What is of importance is the curative attributes of such ingredients that render the product a medicament and not a cosmetic. Secondly, though a product is sold without a prescription ola medical practitioner; it does not lead to the immediate conclusion that all products that are sold over/across the counter are cosmetics. There are several products that are sold over-the-counter and are yet, medicaments. Thirdly, prior to adjudicating upon whether a product is a medicament or not, Courts have to see what the people who actually use the product understand the product to be. If cr product’s primarylimaion is “care” and not “cure”, it is not a medicament. (‘0.vmetic products are used in enhancing or improving a person’s appearance or beauty, whereas medicinal products ‘are used to treat or cure some medical condition. A product that is used mainly in curing or treating ailments or diseases and contains curative ingredients even in small quantities, is to he branded as a medicament.”

2.8.8 While the above decision was delivered by the Hon’ble Court when comparing medicaments and cosmetics, the principle laid down in the above judgement by the Hon’ble Supreme Court is that for a product to be classified as medicament, it should have curative ingredients and qualities. This principle is important from a classification standpoint and have been followed in other decisions as well. Accordingly, on a standalone basis, it may be possible to extend the argument that Keranat (the imported product under reference) which is a natural ingredient that decreases hair loss and leaves it naturally healthy and strong may not be construed as a medicament on its own and is not consumed by consumers as such. The suppliers of Keranat in their website https://Www.robertet.eomien/hcalth-beauty-2/nutrl cosmetics’ keranat/ ‘states that Kcranat(R) is a natural ingredient that decreases hair loss and leaves it naturally healthy and strong.

2.8.9 The Hon’ble Supreme Court in case of Shree Baidyanalh Ayurved nhavan Ltd. vs. Commissioner of Central Excise 1996 (83) E.L.T. 492 (SC), has inter cilia held that ordinarily a medicine is prescribed by a medical practitioner, and it is used for a limited time and not every day, unless it is so prescribed to deal with specific diseases like diabetes. It was also held that normal scientific and technical meaning of the terms and expression should not he automatically adopted but preference should be given to the popular meaning that is to say, the meaning attached to them by those using the product. As such, the certificates issued by Drug Control Authorities cannot be the basis to decide the classification of these products. In any case there is no certificate issued by the Drug Control authorities for the said imported product.

2.8.10 The Supreme Court, in the case of Commissioner of Central Excise & Customs, Surat-11 Nirmala Dychen? 2007 (207) I 161 (SC), held that the principal use of the product needs to be seen to decide classification of said goods.

2.8.11 The CESTAT in the ease of Hindustan Pulverising Mills vs. Commissioner of Customs (Imports), Raigad-1112019 (365) E.L.T. 321 (‘Iii. – Born), held that:

“4.6 Heading 1302 covers, by and large, extracts in purer form which are used as a raw material for preparation of end products down the line in products meant for human consumption either as a drug or medicine or in _.food preparations. Further the end products prepared from the raw material of these headings are not classified here rather they are classified in more specific entries based on their usage. The chapter note of Chapter .13 makes this abundantly clear that 13.02 covers only those plant extracts which are in the form of raw material and it does not cover end products made out of these raw materials: …..

2.8.12 As discussed above, Kcranat is used as a natural care ingredient for manufacture of nutraceutical use for hair care and does not claim to have curing properties. Therefore, it does not appear to fit the definition of “medicament” as brought out above. Further, Keranat is a base raw material for preparation of the end-product. Tablets containing Kcranat as active ingredient arc sold as nutraceutical under different brand names and not medicine requiring approval/license from the Central Drugs Standard Control Organization (`CDSC0′).

2.8.13 Based on the above, Kcranat is not eligible to be called a medicament, i.e. medicine, as envisaged under CTII 3003. Further explanatory notes to CTII 3003 state that the heading covers medicinal preparations for use in internal or external treatment or prevention of human or animal ailments. These preparations arc obtained by mixing together two or more substances. It may therefore be inferred that CHI 3003 would cover only preparations used as medicines.

2.9 Whether Keranat is classifiable under CTH3301, 3305 or 3307

2.9.1 As per product website and product catalogue of the Company, Keranat is a product. depicted as an oral solution for hair loss. Please refer the Company website clearly highlighting that it is a hair care product. Website: https://www.generex.in/product-catalog/keranat

2.9.2 Keranat is a natural ingredient comprising of various vegetable exu^–acts and oils used in hair loss solution and hair beauty.

2.9.3 CTII 3301 covers ‘essential oils (terpene less or not), including concretes and absolutes: retinoids; extracted oleoresins; concentrates of essential oils in fats, infixed oils, in waxes or the like, obtained by effleurage or maceration; terpene by-products of the deter pentation of essential oils; aqueous distillates and aqueous solutions of essential oils’. It may be noted that .Keranat has only 0.07% Rosemary extract which is used as antioxidant and not as a primary and essential ingredient of the product.

As per explanatory notes to Chapter 33, Essential oils covered under CT’ 13301 are those which serve as raw materials in the perfumery, food and other industries, arc of vegetable origin. They are generally of complex composition and contain alcohols, aldehydes, ketones, phenols, esters, ethers and terpenes in varying proportions. These oils remain in the heading Whether or not their fragrance has been modified by removal of their terpenes.

2.9.4 While rosemary extract is covered under the list of essential oils under the explanatory notes, it is important to note that the rosemary extract used in the composition of Kcranat merely acts as an antioxidant which-is necessary for the requisite performance of the product to prevent oxidizing the composition of the various vegetable/plant extracts. It does not serve as a raw material or primary ingredient in the Kcranat to be used in perfumery or food industry. Therefore, Kcranat does not merit classification under C’ITI 3301.

2.9.5 Further, C’TH 3305 covers ‘preparations_.* use on the hair’. It includes various types of hair oils, conditioners, and treatments. The phrase preparation for use on the hair typically would refer to any substance or mixture that is specifically formulated and intended to be applied to human hair for cosmetic or grooming purposes.

2.9.6 Chapter 33 falls under Section VI of the Import Tariff which is titled as ‘preparation for use on the hair’. C1113305 under Chapter 33 covers the following sub-headings and tariff items:

HSN Code	Description
3305	PREPARATIONS FOR USE ON THE HAIR
3305 10	Shampoos
3305 10 10	Containing spirit
3305 10 90	Other
3305 20 00	Preparations for permanent waving or straightening
3305 30 00	Hair lacquers
3305 90	Other:
3305 90 11	Perfumed
3305 90 19	Other
3305 90 20	Brilliantines (spirituous)
3305 90 30	Hair cream
3305 90 40	Hair dyes (natural, herbal or synthetic)
3305 90 50	Hair fixers
3305 90 90	Other

2.9.7. loss of hair, it is not directly used as a preparation for use on the hair and is used as an ingredient to he used in a nutraceutical market and sold in tablet form.

2.9.8 Further, the WCO Explanatory Notes to Chapter 33 state as follows:

“This Chapter does not cover:-

(a) natural oleoresins or vegetable extracts of heading 1301 or 1302;

(b) soap or other products of heading 3401; or

(c) gum, wood or sulphate turpentine or other products of heading 3805.

2. The expression “odoriferous substances” in heading 3302 refers only to the substances of heading 3301, to odoriferous constituents isolated from those substances or to synthetic aromatics.

3. Headings 3303 to 3307 apply, inter cilia, to products, whether or not mixed (other than aqueous distillates and aqueous solutions of essential oils), suitable use as goods c)_..1^. these headings and put up in packings of a kind sold by retail fin. such use.

4. The expression “perfumery, cosmetic or toilet preparations” in heading 3307 applies, inter cilia, to the fillowing products: scented sachets; odoriferous preparations which operate by burning; _perfumed papers and papers impregnated or coated with cosmetics; contact lens or artificial eye solution; wadding, felt and nonwovens, impregnated, coated or covered with perfume or cosmetics; animal toilet preparations.

[Emphasis added”

2.9.9 The WCO Explanatory Notes to Chapter 3305 state as under:

“This heading covers:

(1) Shampoos, containing soap or other organic .surface-active agents (see Note 1 (c) to Chapter 34), and other shampoos. • All these shampoos may contain subsidiary pharmaceutical or disinfectant constituents, even if they have therapeutic or prophylactic properties (see Note 1 (e) to Chapter 30).

(2),Preparations fir permanent waving or straightening.

(3) Hair lacquers {sometimes known as “hair sprays”).

(4) Other hair preparations, such as brilliantines, hair oils, creams (“pomades”) and dressings; hair dyes and bleaches used on the hair; cream-rinses.

Preparations applied to hair on parts of the human body other than the scalp are excluded (heading 33.07). “

2.9.10 The explanatory notes state that products that arc applied to hair or parts of the human body other than the scalp are not covered under CTII 3305 but may fall under CTI 1 330.7.

2.9.11 covers pre-.shave, shaving or after shave or after-shave preparations, personal deodorants, bath preparations, depilatories and other perfumery, cosmetic or toilet preparations, not elsewhere specified or included; prepared room deodorizers, whether or not per firmed or having disinjeclunl properties’. heading 3307 under Chapter 33 covers the following sub-heading and taro If items:

HSN Code	Description
3307	Pre-shave, shaving or after-shave preparations, personal deodorants, bath preparations, depilatories and other perfumery, cosmetic or toilet preparations, not elsewhere specified or included; prepared room deodorisers, whether or not perfumed or having disinfectant properties
3307 10	Pre-shave, shaving or after-shave preparations:
3307 10 10	Shaving cream
3307 10 90	Other
3307 20 00	Personal deodorants and anti-perspirants
3307 30	Perfumed bath salts and other bath preparations:
3307 30 10	Bath oil (thailam)
3307 30 90	Other
—	Preparations for perfuming or deodorizing rooms, including odoriferous preparations used during religious rites:
3307 41 00	“Agarbatti” and other odoriferous preparations which operate by burning
3307 49 00	Other
3307 90	Other:
3307 90 10	Depilatories
3307 90 20	Sterile contact lens care solution
3307 90 90	Other

2.9.12 There is no specific entry under C1113307 which may cover Kcranat, therefore, the most relevant tariff ‘heading could be “3307 90 – Other”.

2.9.13 The WCO Explanatory Notes to CTII 3307 provide as under:

“This heading covers:

(I) Pre-shave, shaving or after-shave preparations, such as shaving creams and foams containing soaps or other organic surface-active agents (see Note 1 (c) to Chapter 34); ‘after­shave’ lotions, alum blocks and styptic pencils. Shaving soap in blocks is excluded (heading 34.01).

(II) Personal (body) deodorants and antiperspirants.

(III) Bath preparations, such as perfumed. bath salts and preparations for foam baths, whether or not containing soap or other organic surface-active agents (sec Note I (c) to Chapter 34). Preparations for washing the skin, in which the active component consists wholly or partly of synthetic organic-surface active agents (which may contain soap in any proportion), in the form of liquid or cream and put up for retail sale, are classified in heading 34.01. Such preparations not put up for retail sale arc classified in heading 34.02.

(IV) Preparations for perfuming or deodorizing rooms, including odoriferous preparations used during religious rites.

(2) Preparations for perfuming rooms and odoriferous preparations used during religious rites. They usually operate by evaporation or burning, e.g. “Agarbatti”, and may be put up as liquids, powders, cones, impregnated papers, etc. Certain of these preparations may be used for masking an odor. Perfumed candles arc excluded (heading 34.06).

Prepared room dcodorisesers, whether or not perfumed or having disinfectant properties. Prepared room dcodorisesers consist essentially of substances (such as lauryl methacrylate) which act chemically on the odor’s to be overcome or other substances designed to physically absorb odor’s by. for example_; van der Waals bonds. When for retail sale they are generally put up in aerosol cans. Products, such as activated carbon, put up in packings for retail sale as deodorizers for refrigerators, cars, etc. are also classified in this heading.

(V) Other products, such as:

(1) Scented sachets containing parts of aromatic plants used for perfuming linen cupboards.

(2) Perfumed papers and papers impregnated or coated with cosmetics.

(3) Contact lens or artificial solutions. These may he for cleaning, disinfecting, soaking or enhancing cornfort during wear.

(4) Wadding, felt and nonwovens impregnated, coated or covered with perfume or cosmetics.

(5) Animal toilet preparations, such as dog shampoos, and plumage-improving washes for birds.

(6) Sodium chloride solutions put up for hygiene use in packings for retail sale, other than medical or pharmaceutical, whether or not sterile.”

2.9.14 Given that Keranat does not fall into any of the above categories and is used as a natural ingredient for manufacturing of tablets which is then marketed and sold as nutraceutical for hair care, it does not appear to be classified under CTII 3307.

2.9.15 The Hon’ble Supreme Court of India in the case of Commissioner of Central Excise, IV Mumbai-IV vs. Cines Laboratories (2013) 14 SCC 133 formulated the following principles for determining the nature of a product as to whether it is a medicament or a cosmetic: –

“Firstly, when a product contains pharmaceutical ingredients that have therapeutic. Or prophylactic or curative properties, the proportion of such ingredients is not invariably decisive. What is of importance is the curative attributes of such ingredients that render the product a medicament and not a cosmetic:.

Secondly, though a product is sold without a prescription of a medical practitioner, it does nor lead to the immediate conclusion that all products that are sold over/across the counter are cosmetics. There are several products that are sold over-the-counter and yet, medicaments.

Thirdly, prior to adjudicating upon whether a product is a medicament or not, Courts have to see what the people who actually use the product understand the product Jo be. If a product’s primary flinction is “care” and not “cure “. it is not a medicament. Cosmetic products are used in enhancing or improving a persons appearance or beauty whereas medicinal products are used to treat or ewe sonic medical condition. A_:product that is used mainly in curing or treating ailments or diseases and contains curative ingredients even in .Gmail quantiles to be branded as a medicament.”

2.9.16 The Hon’ble Apex Court in cases of conflict of classification under Chapters 30 and 33 has given more weightage to the functional test of the product wherein what is considered is use of the product by the end consumer and its primary ,function. Therefore,. the motional teste Keranat does not merit the classification of the said product under CTI Is 3305 or 3307.Hence, Keranat is not classifiable under CTH 3301, 3305 or 3307.

2.10 Whether, Keranat is classifiable Under CTH 3824

2.10.1 Chapter 38 falls under Section VI of the Import Tariff which is titled as ‘products of the chemical or allied industries’. CTH 3824 under Chapter 38 covers the following sub-headings and tariff items:

Tariff Item	Description
3824	Prepared binders for foundry moulds or cores; chemical products and preparations of the chemical or allied industries (including those consisting of mixtures of natural products), not elsewhere specified or included
3824 10 00	Prepared binders for foundry moulds or cores
3824 30 00	Non-agglomerated metal carbides mixed together or with metallic binders
3824 40	Prepared additives for cements, mortars or concretes:
3824 40 10	Damp proof or water proof compounds
3824 40 90	Other
3824 50	Non-refractory mortars and concretes:
3824 50 10	Concretes ready to use known as “Ready-mix Concrete (RMC)”
3824 50 90	Other
3824 60	Sorbitol other than that of sub-heading 2905 44:
3824 60 10	In aqueous solution
3824 60 90	Other
—	Goods specified in Sub-heading Note 3 to this Chapter:
3824 81 00	Containing oxirane (ethylene oxide)
3824 82 00	Containing polychlorinated biphenyls (PCBs), polychlorinated terphenyls (PCTs) or poly-brominated biphenyls (PBBs)
3824 83 00	Containing tris (2, 3-dibromopropyl) phosphate
3824 84 00	Containing aldrin (ISO), camphechlor (ISO) (toxaphene), chlordane (ISO), chlordecone (ISO), DDT (ISO) (clofenotane (INN), 1, 1, 1-trichloro-2, 2-bis(p-chlorophenyl)ethane), dieldrin (ISO, INN), endosulfan (ISO), endrin (ISO), heptachlor (ISO) or mirex (ISO)
3824 85 00	Containing 1, 2, 3, 4, 5, 6-hexachlorocyclohexane (HCH) (ISO), including lindane (ISO, INN)
3824 86 00	Containing pentachloro benzene (ISO) or hexachlorobenzene (ISO)
3824 87 00	Containing perfluoro octane sulphonic acid, its salts, perfluoro octane Sulphenamides, or perfluoro octane sulphonyl fluoride
3824 88 00	Containing tetra-, penta-, hexa-, heptad- or octabromide-diphenyl ethers
3824 89 00	Containing short-chain chlorinated paraffins
—	Other:
3824 91 00	Mixtures and preparations consisting mainly of (5-ethyl-2-methyl-2-oxido-1, 3, 2-dioxa-phosphinan 5-yl)methyl methyl methyl phosphonate and bis[(5-ethyl-2-methyl-2-oxido-1, 3, 2-dioxaphosphinan-5-yl)methyl] methyl phosphonate
3824 92 00	Polyglycolic esters of methyl phosphonic acid
3824 99 00	Other

2.10.2 The notes to Chapter 38 provide as under:

“1. This Chapter does not cover: –

(a) separate chemically defined elements or compounds with the exception of the following:

(1) artificial graphite (heading 3801);

(2) insecticides, rodenticides, fungicides, herbicides, anti-sprouting products and plant-growth regulators, disinfectants and similar products, put up as described in heading 3808;

(3) products put up as charges for fire-extinguishers or put up in fire-extinguishing grenades (heading 3813);

(4) certified reference materials specified in Note 2 below;

(5) products specified in Note 3 (a) or 3 (c) below;

(b) mixtures of chemicals with foodstuffs or other substances with nutritive value, of a kind used in the preparation of human foodstuffs (generally, heading 2106);

(c) products of heading 2404;

(d) slag, ash and residues (including sludges, other than sewage sludge), containing metals, arsenic or their mixtures and meeting the requirements of Note 3 (a) or 3(b) to Chapter 26 (heading 2620);

(e) medicaments (heading 3003 or 3004);

(f) spent catalysts of a kind used for the extraction of base metals or for the manufacture of chemical compounds of base metals (heading 2620), spent catalysts of a kind used principally for the recovery of precious metal (heading 7112) or catalysts consisting of metals or metal alloys in the form of, for example, finely divided powder or woven gauze (Section XIV or XV).

2. (A) For the purpose of heading 3822, the expression “certified reference materials” means reference materials which arc accompanied by a certificate which indicates the values of the certified properties, the methods used to determine these values and the degree of certainty associated with each value and which arc suitable for analytical, calibrating or referencing purposes.”‘

(B) With the exception of the products of Chapter 28 or 29. fin• the classification of certified reference materials, heading 3822 shall take precedence over any other heading in the Schedule.

3. Heading 3824 includes the following goods which arc not to he classified in any other heading of this Schedule: –

(a) cultured crystals (other than optical elements) weighing not less than 2.5 g each, of magnesium oxide or of the halides of the alkali or alkaline-earth metals;

(b) fusel oil; Dippel’s oil;

(c) ink removers put up in packings for retail sale;

(d) Stencil correctors, other correcting fluids and correction tapes (other than those of heading 9612), put up in packings for retail sale; and;

(e) ceramic firing testers, fusible (for example, sager cones).

4. Throughout the Schedule, “municipal waste” means waste of a kind collected from households, hotels, restaurants, hospitals, shops, offices, etc., road and pavement sweepings. as well as construction and demolition waste. Municipal waste generally contains a large variety of materials such as plastics, rubber, wood, paper. textiles. glass, metals, food materials. broken^–furniture and other damaged or discarded articles. The term “municipal waste”, however. does not cover: –

(a) individual materials or articles segregated from the waste, for example wastes of plastics, rubber, wood, paper, textiles, glass or metals, electrical and electronic Waste and scrap (including spent batteries) which fall in their appropriate headings of the Nomenclature;

(b) industrial waste;

(c) waste pharmaceuticals, as defined in. Note 4(k) to Chapter 30; or

(d) clinical waste, as defined in Note 6(a) below.

5. For the purposes of heading 3825, “sewage sludge” means sludge arising from urban effluent treatment plant and includes pre-treatment waste, scourings and unsterilized sludge. Stabilised sludge when suitable for use as fertiliser is excluded (Chapter 31).

6. For the purposes of heading 3825, the expression “other wastes” applies to:-

(a) clinical waste, that is, contaminated waste arising from medical research. diagnosis, treatment or other medical, surgical, dental or veterinary procedures, which often contain pathogens and pharmaceutical substances and require special disposal procedures (for example, soiled dressings. used gloves and used syringes);

(b) waste organic solvents;

(c) wastes of metal pickling liquors, hydraulic fluids, brake fluids and anti-freezing fluids; and

(d) other wastes from chemical or allied industries.

(e) The expression “other wastes” does not, however, cover wastes which contain mainly petroleum oils or oils obtained from bituminous minerals (heading 2710).

7. For the purposes of heading 3826, the term “biodiesel” means mono-alkyl esters of fatty acids of a kind used as a fuel, derived from animal or vegetable or microbial fats and oils whether or not used.”

2.10.3 Sub-headings 3824 81 to 3824 89 provides as under:

3. Sub-headings 3824 81 to 3824 89 cover only mixtures and preparations containing one or more of the following substances: oxirane (ethylene oxide); polybrominated biphenyls (PBBs); polychlorinated biphenyls (PCBs); polychlorinated terphenyls (PCTs); tris(2,3-dibromopropyl) phosphate; aldrin (ISO); camphechlor (ISO) (toxaphene); chlordane (ISO); (ISO); DDT (ISO); clofenotane (INN); 1,1,1-trichloro-2,2-bis(p-chlorophenyl)ethane; dieldrin (ISO, INN); endosulfan (ISO); cindrin (ISO); heptachlor (ISO); mirex (ISO); 1,2,3,4,5,6-hexachlorocyclohexane (HCH (ISO)), including lindane (ISO, INN); pentachloro benzene (ISO); hexachlorobenzene (ISO); perfluoro octane sulphonic acid, its salts; perfluoro octane Sulphenamides; perfluoro octane sulphonyl fluoride; tetra-, penta-, hexa-, heptad- or octabromodiphenyl ethers; short-chain chlorinated paraffins.

Short-chain chlorinated paraffins are mixtures of compounds, with a chlorination degree of more than 48% by weight, with the following molecular formula: CxH(2x-y+2)Cly, where x = 10 – 13 and y = 1 – 13.

2.10.4 There does not appear to be any specific entry under Chapter 3824 which could cover Keranat given its composition. Further, the explanatory notes do not specifically exclude or include Keranat since the heading of the chapter heading provides for mixture of natural ingredients as well. However, para 5(b) of the explanatory notes provides that this chapter does not cover mixtures of chemicals with foodstuffs or other substances with nutritive value, of a kind used in the preparation of human foodstuffs (generally, heading 2106). Kcranat is neither mixture of chemicals with food stuff nor food stuff covered under Chapter 21. However, Keranat does have nutritive value in its composition. The nutritive value (which is a noun) means the degree to which an item (food stuff or other) is valuable in promoting health. Therefore, items having nutritive value will not be covered under Chapter 38, more particularly CTI1 3$24.

2.10.5 Furthermore, the meaning of natural ingredients referred to in the Chapter heading is also relevant. The explanatory notes of the Customs Tariff Schedule do not provide any indication of the natural ingredients being referred to. Similarly, WCO Explanatory Notes to Chapter 3824 do not directly provide a definition of natural ingredients. However, para 24 of the explanatory notes to Chapter heading 3824 provides some examples of Natural ingredients being referred to. The same is as under:

“Compounded extenders for paints. These arc prepared powders, (Men added to paints other than distempers) to reduce their cost and at the same time, in some cases, to improve certain properties (e.g., to facilitate the spreading of colouring pigments). They arc also used in the manufacture of distempers, but in this case they act as pigments. These preparations consist of mixtures of two or more natural products (chalk, natural barium sulphate, slate, dolomite, natural magnesium carbonate, gypsum, asbestos, mica, talc, calcite, etc.), of mixtures of these natural products with chemical products, or of mixtures of chemical products (e.g., mixtures of Aluminium hydroxide and barium sulphate).

This category also includes finely ground natural calcium carbonate (“Champagne white”), each particle being coated, by a special treatment, with a water-repellent film of stearic acid.”

2.10.6 The examples referred to in the above paragraph do not appear to include the natural ingredient of plants/vegetables and seeds. As discussed above, Keranat is a plant-derived formulation consisting of millet seed extract, wheat extract, rosemary extract, and sunflower oil as a carrier. It does not undergo synthetic modification or industrial processing typical of chemical preparations.

2.10.7 Further, CTH 3824 is a residual classification, to be used only where no other heading applies. ,In this case, more specific and appropriate headings arc available as discussed above, and therefore. Keranat does not merit classification under CM 3824.

2.11 Relevant Judicial Decision

The Hon’ble CESTAT in case of Cachet Pharmaceuticals (P) Ltd vs. (VAT, Delhi 2017 (8) TMI 1206, held that vegetable extracts can be in various brims, liquid, powder or compacted tablet. The Hon’ble Tribunal held as under:

“7. Tariff item 13021914 specifically mentions extracts of Ginseng (including powder). It is clear that if Ginseng extract is imported in powder form, there could be no question about its. classification. However, in the present case, the objection came only because it is in tablet form. Admittedly, vegetable extracts like the present one, can be in various forms, liquid, powder or compacted tablet. As long as the item is only extract of Ginseng plant, there can be no reason. for exclusion of such item from the said tariff entry. Even otherwise, we note that the classification proposed by the Revenue is completely unconnected to the product in question. A perusal of main tariff entry 2106 will show that the said heading deals with food preparations not elsewhere specified or included. A perusal of open source information available in public domain indicates that the said Ginseng extract is considered as traditional medicine, for centuries. Extract is widely used as a generic health supplement and for various other specific requirement like muscle strength, improved concentration etc.

8. After careful consideration of the findings in the impugned order and the nature of imported material, we find that ‘Korean Ginseng tablets’ arc correctly classifiable under tariff item 13021914 as vegetable extracts of Ginseng (including powder).”

2.12 For the reasons set out above, Keranat, being a compound vegetable extract derived ‘from millet and wheat and standardised with sunflower seed oil as an inert carrier/standardising medium, is correctly classifiable under Customs Tariff Heading 1302, specifically tariff item 13021919. The essential Character of the product continues to remain that of a vegetable extract and is not altered by the presence of sunflower oil used solely as a carrier medium.

Further, on the basis of the product composition, manufacturing process, manner of presentation, trade understanding and intended usage as disclosed herein, Kcranat dots not merit classification under Chapter 15 as a vegetable oil or fat preparation, under Chapter 21 as food preparation, under Chapter 30 as a medicament, under Chapter 33 as an essential oil/ oleoresin/ odoriferous preparation or under Chapter 38 as a miscellaneous chemical preparation.

Accordingly, the applicable classification for the subject goods is tariff item 1302 19 39 as “Other” extracts under Heading 1302.

2.13 Issues requiring advance ruling and applicant’s understanding

2.13.1 In the light of aforementioned, the Applicant seeks to ask the following questions for Advance Ruling and its interpretation of the question will be as under:

Question No. 1: “Whether the product in question i.c: Keranat which is in the nature of a compound vegetable extract when imported into India is classifiable under Customs Tariff Item (CTH) 1302 of the First Schedule to the Customs Tariff Act, 1975 (the Tariff)”

Applicant’s understanding: Yes

Question No. 2: “Should the product in question in the present application i.e. Keranat be classifiable as ‘animal, vegetable or microbial fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes’ in cri is 1512 or 1515.”

Applicant’s understanding: No

Question No. 3: “Should the product in question he classified under CTH 2106 as miscellaneous edible preparation.”

Applicant’s understanding: No

Question No. 4: “Should the product in question he classified as pharmaceutical products under CTI-Is 3003 or 3004″

Applicant’s understanding: No

Question No. 5: “Should the product in question be classified under CTI-Is 3301 (Essential Oils), 3305 (preparations for use on the hair) or 3307 (perfumery, cosmetic or toilet preparations)”

Applicant’s understanding: No

Question No. 6: “Should the product in question be classified under Cl’!! 3824 as (chemical products and preparations of the chemical or allied industries (including those consisting of mixtures of natural products).”

Applicant’s understanding: No

Question 7: If the product mentioned above is not classifiable under the CT1 Is / mentioned above, then what would be the correct classification of the above product under the “tariff?

Applicant’s understanding: Not applicable

3. Port of Import and reply from jurisdictional Comniissioncratc:

The applicant in their CAAR-1 indicated that they intend to import the subject goods at the jurisdiction of Office of the Commissioner of Customs (Import), Air Cargo Complex, Sah.ar, Andheri East, Mumbai 400099. The application was forwarded to the concerned Commissionerate for their comments on 21.04.2026. The comments received on 17.07.2026 from the Commissioner of Customs (Import), Air Cargo Complex, Sahar, Andheri East, Mumbai are as following:

3.1 Comments on Merits of Classification

The principal issue involved is whether the imported product “Keranat” merits classification under Customs Tariff Heading 1302 as “vegetable saps and extracts” or under alternative headings such as:

• 1512/1515 (animal, vegetable or microbial fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes)
• 2106 (miscellaneous edible preparation)
• 3003/3004 (pharmaceutical products)
• 3301/3305/3307 (Essential Oils / preparations for use on the hair / perfumery, cosmetic or toilet preparations)
• 3824 (chemical products and preparations of the chemical or allied industries)

as proposed in the application.

The applicant has described the composition of Keranat approximately as under:

• Millet seed extract •– 60%
• Sunflower seed oil 29.93%
• Wheat extract 1.0%
• Rosemary extract 0.07%

The manufacturing process indicates extraction of vegetable constituents from, millet and wheat, followed by blending and standardization with sunflower oil and rosemary extract.

3.1.1 Examination of classification under CTH 1302

Heading 1302 covers vegetable saps and extracts, pectic substances, pectinates and other mucilage’s derived from vegetable. products.

The applicant has claimed that Keranat is a compound vegetable extract classifiable under CTII 1302. However, classification under Heading 1302 is applicable to vegetable extracts as such, which retain the essential character of extracts obtained from plant material.

In the present case, Keranat is not merely a plant extract. It is a deliberately formulated preparation consisting of multiple ingredients, namely millet extract, wheat extract, rosemary extract and sunflower oil. The product has undergone blending and standardization to obtain a specific preparation for use in nutraceutical manufacture.

‘[he addition of sunflower oil and rosemary extract, along with formulation and standardization, results in a preparation having characteristics beyond a simple vegetable extract. ‘Therefore, the product does not merit classification under CTH 1302.

3.1.2 Examination of Classification under Chapter 15 (CM 1512/ 1515)

Chapter 15 covers animal, vegetable or microbial fats and oils and their fractions.

Although sunflower oil is present in Keranat, the imported product is not sunflower oil or any fixed vegetable oil. Sunflower oil is only one component of a composite preparation and does not impart the essential character of the product. hence, classification under urn 1512 or 1515 is not appropriate.

3.1.3 Examination of Classification under CTII 3003/3004

Heading 3003 and 3004 cover medicaments.

Keranat is not imported as a medicament, is not presented in measured doses and does not have a declared therapeutic or prophylactic formulation at the time of import.

Therefore, classification under Chapter 30 is not applicable.

3.1.4 Examination of Classification under Chapter 33

The product is neither an essential oil nor a cosmetic, toilet or hair preparation. Though the final nutraceutical ‘products may relate to hair health, Keranat itself is imported as an ingredient for manufacture of nutraceuticals.

Therefore. classification under CTH 3301, 3305 or 3307 is not applicable.

3.1.5 Examination of Classification under CTII 3824

Heading 3824 covers chemical products and preparations of chemical or allied industries.

Keranat is a food/nutraceutical ingredient preparation derived mainly from vegetable sources and is not a chemical preparation of the nature covered under Heading 3824.

Hence CTII 3824 is ruled out.

3.1.6 Examination of Classification undo• cull 2106

Heading 2106 covers:

“Food preparations not elsewhere specified or included.”

Kcranat is a compound preparation containing various plant-derived extracts blended with sunflower oil and standardized for use as an ingredient in nutraceutical products.

The product is not classifiable as a single vegetable extract because the formulation involves combination of various extracts and other ingredients to achieve a specific nutritional/functional purpose.

Further the product is supplied to nutraceutical manufacturers for incorporation into tablets along with other ingredients such as vitamins and minerals. Such preparations, which arc not covered specifically elsewhere in the tariff, fall under Heading 2106.

The essential character of Keranat is that of a formulated nutraceutical ingredient preparation and not an individual vegetable extract.

Applying Rule 3(b) of the General Rules for Interpretation of the Import Tariff, where goods consist of a mixture or combination of materials, classification is determined by the component which gives the goods their essential character. In the present case, the combination of plant extracts with carrier oil creates a distinct preparation intended for nutraceutical use.

Therefore, Keranat merits classification under CTI 21069099 — Food preparations not elsewhere specified or included – Other.

Question No. 1: “Whether the product in question i.e. Keranat which is in the nature of a compound vegetable extract when imported into India is classifiable under Customs Tariff Item (CTI) 1302 of the First Schedule to the Customs Tariff Act, 1975 (the Tariff)”

Applicant’s understanding: No

Question No. 2: “Should the product in question in the present application i.e. Keranat he classifiable as ‘animal, vegetable or microbial fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes’ in CTIls 1512 or 1515.”

Applicant’s understanding: No

Question No. 3: “Should the product in question be classified under CM 2106 as miscellaneous edible preparation.”

Applicant’s understanding: Yes

Question No. 4: “Should the product in question be classified as pharmaceutical products under CTTIs 3003 or 3004”

Applicant’s understanding: No

Question No. 5: “Should the product in question be classified under CFI Is 3301 (Essential Oils), 3305 (preparations for use on the hair) or 3307 (perfumery, cosmetic or toilet preparations)” Applicant’s understanding: No ,

Question No. 6: “Should the product in question be classified under CFI 3824 as (chemical products and preparations of the chemical or allied industries (including those consisting of mixtures of natural products).”

Applicant’s understanding: No

Question 7: II’ the product mentioned :above is not classifiable under the CTI / CTIs as mentioned above, then what would be the correct classification of the above product under the Tar i ir? –

Applicant’s understanding: On merits, the imported product “Keranat” appears appropriately classifiable under CTI 21069099 of the First Schedule to the Customs Tariff Act. 1,975.

However, determination of classification at the time of importation would be based on physical examination, chemical analysis 1.vhercver necessary, verification of labelling And declarations, and application of the General Rules for Interpretation along with relevant Chapter Notes.

4. Applicant’s Reply to_. the Comments of the Jurisdictional Commissionerate

4.1 The comments of the jurisdictional Commissionerate were communicated to the applicant for their response. in reply, the applicant vide letter dated 23.07.2026 submitted that the proposal to classify Keranat under CTII 2106 was not legally sustainable. –

4.2 The Applicant submitted that classification is required to be determined in accordance with Rule 1 of the General Rules for Interpretation, on the basis of the terms of the headings and relevant Section/Chapter Notes. It was contended that Keranat being a compound vegetable extract, is specifically covered under CTH 1302 and, therefore, the residuary heading 2106 cannot he invoked.

4.3 The Applicant stated that Keranat contains approximately 60% millet seed extract, 10% wheat extract, 29.93% sunflower seed oil and 0.07% rosemary extract. Sunflower oil acts as. a carrier/standardising medium and rosemary extract as an antioxidant. According to the Applicant, the presence of multiple vegetable extracts and standardisation does not take the product outside cm 1302.

4.4 The Applicant relied upon the IISN Explanatory Notes to I leading 1302, submitting that the said heading covers compound as well as standardised vegetable extracts. It was contended that the product has not acquired the character of a food preparation merely because it contains more than one plant extract or is standardised with sunflower oil.

4.5 The Applicant further submitted that Keranat is imported in bulk packs as a raw material/ingredient and is not .a finished food preparation, dietary supplement or ready-to-consume nutraceutical product. Its subsequent use by third-party manufacturers in nutraceutical tablets according to the Applicant, cannot determine its classification at the time of importation.

4.6 With regard to CTII 2106, the Applicant submitted that the heading is residuary in nature and applies only to food preparations not elsewhere specified or included. Since Keranat is specifically covered under CT1-1 1302, classification under CU 1 2106 would not arise.

4.7 The Applicant also submitted that the alternative classifications under Chapters 15, 30 and 33 and CTII 3824 were not applicable, as also accepted in the jurisdictional comments.

4.8 Regarding Rule 3(b), the Applicant submitted that recourse to the said rule was unnecessary as the goods were directly classifiable under Rule 1. Without prejudice, even under Rule 3(b), the essential character of Keranat, according to the Applicant, is imparted by the millet and wheat extracts, while sunflower oil and rosemary extract are ancillary ingredients.

4.9 The Applicant further submitted that, pursuant to the tariff restructuring effective from 01.05.2026, Keranat is appropriately classifiable under CTI 13021939 — Other extracts.

4.10 Accordingly, the Applicant requested that the classification proposed by the Jurisdictional Commissionerate under CTI 21069099 be rejected and that Keranat be held classifiable under CTI 13021939 of the First Schedule to. the Customs Tariff Act, 1975.

5. Details of Personal Hearing: A personal hearing in the matter was held on 04.08.2026. The authorised representative of the applicant, appeared before the Authority and reiterated the submissions made in the application. lie submitted that the product `Karanat’ is compound vegetable extract comprising mainly Millet seeds extract, Sunflower seeds oil, Wheat extract & Rosemary extract in varying proportions and merits classification under CTI I 1302 as vegetable saps & extracts.

further submitted that the essential character of the product remains that of a vegetable extract and is not altered by the presence of sunflower oil, which is added primarily as a carrier/standardising medium.

5.1 Nobody appeared for the PIT from the Department.

6. Discussion and Findings

6.1 1 have carefully considered the application dated 07.04.2026 filed by the Applicant, the additional submissions dated 09.06.2026, the comments furnished by the jurisdictional Commissioner, Applicant’s Reply to the Comments of the Jurisdictional Commissionerate and oral submissions advanced during the personal hearing held on 04.08.2026. I have also examined the relevant provisions of the Customs Act, 1962, the First Schedule to the Customs Tariff Act, 1975, the General Rules for the Interpretation of the import Thrill’ (GIR), the IISN Explanatory Notes and the judicial precedents relied upon by the Applicant. I have further examined the product’s manufacturing process, composition, technical documents and other material placed on record.

6.2 The first schedule to the Customs Tariff Act, 1975 mandates the General Rules of Interpretation (“GRIs”) which are to be^. applied to determine classification under the Customs Tariff. Classification of goods in the Nomenclature shall be governed by the following principles:

The titles of .Sections, Chapters and sub-Chapters are provided fire ease of reference only: for legal purposes, classification shall he determined according to the terms of the headings and _.any relative Section or Chapter Notes and, provided such headings or Notes do not otherwise require, according to the provisions:.

…………..

3. When by application of Rule 2 (b) or for any other reason, goods ‘are., prima facie, classifiable tinder two or more headings, classification shall be affected as follows:

(b) Mixtures, composite goods consisting of different materials or made up different components, and goods put up in sets for retail sale, which cannot he classified by reference to 3 (a), shall be classified as if they consisted (.)f the material or component which gives them their essential character insofar as this-criterion is applicable.

6.3 The Section Notes or Chapter Notes and Sub-Heading Notes give detailed explanation as to the scope and ambit of the respective Sections and Chapters. These notes have been given statutory backing and have been incorporated at the beginning of each chapter.

6.4 The issues for determination in the. present application is the appropriate classification of the imported product “Kcranat” between Heading 1302 (vegetable saps and extracts) and Heading 2106 (food preparation not elsewhere specified or included) under the First Schedule to the Customs Tariff Act, 1975.

The jurisdictional Commissioner has proposed classification under CTI 2106 90 99, whereas the Applicant, having regard to the tariff restructuring effective from 01.05.2026, has claimed classification under CTI 1302 19 39.

The determination, therefore, requires examination of the nature and character of Kcranat as imported, the scope of Heading 1302, the exclusions contained therein, the applicability of Ileading 2106, the relevant HSN Explanatory Notes and, if necessary, the applicability of Rule 3(b) of the GIR.

6.5 From the documents placed on record, it is observed that Keranat is manufactured by crushing millet seeds into millet flour, followed by standardisation with cold-pressed sunflower seed oil. Separately, wheat extract is obtained from wheat seed by cthanolic extraction followed by filtration and removal/concentration of ethanol under vacuum. The wheat extract is thereafter added to the standardised millet seed extract. Finally, the mixture is standardised with cold-pressed sunflower seed oil and rosemary leaves extract is added to obtain the final product “Keranat”.

6.5.1 The composition of Keranat, as declared by the Applicant is as follows:

Sr. No.	Ingredient	Composition (%)
1.	Millet seed extract	60
2.	Sunflower seed oil	29.93
3.	Wheat seed extract	10
4.	Rosemary extract	0.07

6.5.2 The manufacturing process of Keranat involves the following steps:

> Crushing of whole millet seeds to millet flour.

> Addition of cold-pressed sunflower oil by CO₂ extraction to millet flour to get standardized millet seed extract.

> Extraction of wheat extract from wheat seed by way of ethanolic extraction (i.e. extraction with ethanol), and filtration (i.e. removal of ethanol by vacuum concentration).

> Addition of wheat seed extract to standardized millet seed extract.

> Standardization of the mixture of millet and wheat extract with cold-pressed sunflower oil and addition of CO₂ rosemary leaves extract.

> Final product Keranat

6.5.3 The composition breakdown of Keranat is as follows:

Ingredients	Role	Classification
Standardized millet seed extract – 89.8%	Millet seed extract – 60%	Active ingredient
	Sunflower seed oil – 29.80%	Excipient
Wheat Extract – 10%	Wheat extract – 10%	Active ingredient
Rosemary extract – 0.2%	Rosemary extract – 0.07%	Antioxidant
	Sunflower seed oil – 0.13%	Excipient

Thus, the Millet seed extract and wheat extract constitute the principal active ingredients of Keranat, whereas Sunflower Seed oil functions as an excipient and Rosemary Extract function as an antioxidant.

6.5.4 Nature and Role of the Ingredients:

Millets arc a highly varied group of small-seeded grasses, widely cultivated around the world as cereal crops or grains for fodder and human food. Most millets belong to the tribe Panacea. Wheat is a group of wild and domesticated grasses of the genus Tritium. They are cultivated for their cereal grains, which arc staple foods around the world.

In Kcranat, Millet. seed extract and Wheat extract constitute the active ingredients of Keranat along with excipient (sunflower seed oil) aid antioxidant (rosemary extract). The rosemary extract acts as an antioxidant in the composition of Keranat and does not change the essential characteristics of the product.

6.5.5 Character of the Goods at the time of Importation:

An important aspect considered is that classification has to be determined with reference to the goods as presented for importation. Keranat is imported ‘in bulk industrial packs and is supplied to third-party manufacturers as an ingredient/raw material. It is not imported in the form of tablets, capsules or other dosage forms and is not presented as a finished nutraceutical product for direct consumption.

The vitamins, minerals, amino acids and other ingredients required for the finished nutraceutical formulation are added subsequently by downstream manufacturers. Therefore, the finished nutraceutical tablets manufactured by downstream manufacturers have to be distinguished from Keranat itself as imported. The subsequent use of Keranat in the manufacture of nutraceutical tablets cannot, by itself, determine the tariff classification of Keranat at the time of importation.

6.6 Heading 1302 — Vegetable Saps and Extracts

‘The Applicant has claimed that Keranat is a compound vegetable extract and therefore falls under (leading 1302. The Explanatory Notes issued by the World Customs Organization (“WCO”) to CTII 1302 state as under: “(A) Vegetable saps and extracts.

The heading covers vegetable saps (vegetable products usually obtained by natural exudation or incision) and extracts (vegetable products extracted from the original vegetable material by solvents), provided that they are not spec vied or included in more specific heading;

of the Nomenclature: These saps and extracts differ from the essential retinoids and extracted oleoresins of heading 33.01, in that, apart from volatile odoriferous constituents, they contain a _.far higher portion of other plant substances (e.g., chlorophyll, tannins,. bitter principles, carbohydrates and other extractive matter) ……….

The abovementioned explanatory notes further states that:

“Saps are usually thickened or solidified. Extracts may he in liquid, paste or solidi-Om.

‘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 .standardises’ by adding mineral oil to produce commercial grades with a standard pyrethrin’s content of e.g., 2%, 20% or 25%):•Solid extracts are obtained by &evaporating the solvent. inert substances are some lunes 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 added to opium in order to obtain a product containing a known portion of morphine). The addition of such substances does not affect the classification of these solid extracts. However, extracts may 1701 be subjected to additional extraction cycles or to purification processes, such as chromatographic purification, that increase or decrease certain compounds or compound classes to a degree that cannot he achieved solely by means of initial solvent extraction. Extracts may be simple or compound. Simple extracts are obtained by the treatment of only one variety of plant. Compound extracts are obtained either by mixing simple extracts or by treating mixtures of different varieties of plants. Compound extracts (whether in the firm of alcoholic tinctures or in any other firms) therefore’ Oath the constituents of several kinds of plant; they include compound Map extract, compound extract of aloes, compound extract of cinchona, etc.” …………

The explanatory notes further state as under:

“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 cif 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 (e.g. liquid-liquid extraction) following initial extraction.

The HSN Explanatory Notes to Heading 1302 are particularly relevant.. These Notes explain that the heading covers vegetable saps and extracts obtained from vegetable materials by extraction using solvents, provided that such products are not specifically covered under another heading. The FISN ?‹,placatory Notes also recognise that extracts may be in liquid, paste or solid form. More importantly, the Notes recognise both simple extracts and compound extracts. A simple extract is obtained from only one variety of plant, whereas a compound extract is obtained either by mixing different simple extracts or by treating mixtures of different varieties of plants.

Therefore, the mere fact that Keranat contains extracts derived from more than one plant source does not, by itself, exclude it from Heading 1302.

The HSN Notes further recognise the concept of standardisation of extracts. Substances may be added to an extract for obtaining a standard strength or for facilitating its handling. Such additions do not necessarily alter the classification of the extract. Accordingly, the mere presence or addition of another substance, such as sunflower seed oil, cannot automatically take Keranat outside Heading 1302. The relevant question is whether, because of such addition, the product has acquired a different character, such as that of a food preparation, medicament or another product specifically covered under a different heading.

The HSN Notes also provide that vegetable extracts arc excluded from I leading 1302 where, because of the addition of other substances, they acquire the character of food preparations, medicaments, etc. They may also he excluded where they have undergone highly refined or purified processes, such as chromatographic purification, ultrafiltration or additional extraction cycles after the initial extraction. Therefore, the key issue is not merely whether Keranat contains ingredients other than vegetable extracts. The relevant question is whether the. addition of sunflower seed oil and rosemary extract, together with the manufacturing and standardisation process, has transformed Keranat into a product having the character of a food/nutraceutical preparation, or whether it continues to retain the essential character of a compound and standardised vegetable extract.

In the present case, the fact that Keranat contains Millet Seed Extract and Wheat Seed Extract from different botanical sources is consistent with the USN concept of a compound extract. Similarly, the addition of sunflower seed oil for standardisation/carrier purposes does not, by itself, exclude the product from Heading 1302. Thus, heading 1302 remains a relevant and specific heading for consideration, and the final determination depends upon whether the product, Idler the addition of the other substances, has acquired the character of a separate food preparation classifiable under Heading 2106.

6.7 Effect of Addition of Sunflower Oil and Rosemary Extract

The Department has raised a specific objection regarding the presence of approximately 29.93% sunflower seed oil in Keranat. According to the Department, Keranat is a deliberately formulated preparation containing millet extract, wheat extract, rosemary extract and sunflower oil and, therefore, the process of blending and standardisation gives the product the character of a nutraceutical preparation.

I have considered this objection carefully. In my view, the mere presence of sunflower seed oil in the formulation, even in a substantial quantity, cannot by itself determine the classification of the product. The more relevant question is the function performed by the sunflower oil in the formulation and its effect, if any, on the essential character of the product.

For this purpose, it is useful to understand the terms carrier, diluent and standardising medium.

• A “carrier” is a substance used to carry, disperse, dissolve or uniformly distribute another substance-and to facilitate its handling or incorporation into a formulation.
• A ^–diluent” is a substance used to reduce concentration, adjust the bulk or facilitate uniform mixing and handling of the principal material.
• A “standardising medium” is a substance used-to adjust the concentration or physical composition of a preparation so that the specified constituents consistently conform to a predetermined specification or range. The use of such a substance for standardisation does not,^– by itself, make the standardising substance the principal or active constituent of the preparation.

6.7.1 Functional role of sunflower seed oil

In the present case, the material placed on record indicates that approximately 29.93% cold-pressed sunflower seed oil is used in Keranat as a carrier diluent and medium for standardisation. The expression “cold-pressed” describes the method by Which the oil is obtained from sunflower seeds. It does not, by itself, establish the function performed by the oil in the finished product. The relevant question is therefore not merely how much sunflower oil is present, but why it is present and what it does in the formulation.

In this regard, reference may he made to the Handbook of Pharmaceutical Excipients, Sixth Edition, edited by Raymond C. Rowe, Paul J. Shockey and Marian E. Quinn. The said reference work recognises sunflower oil as an excipient having various formulation-related functions, including diluent, emollient, emulsifying agent, ‘solvent and tablet binder. This demonstrates that sunflower oil is capable of performing supporting technological functions in a formulated preparation and that its presence in a formulation does not by itself mean that it constitutes the principal or active ingredient.

Accordingly, Sunflower oil is capable of functioning as an oil-based vehicle or carrier because it can provide a suitable medium in which botanical extracts can be incorporated and uniformly distributed. Where an extract is required to be handled, dispersed, diluted or brought to a consistent concentration, an appropriate carrier medium may be required. In such circumstances, the carrier performs a technological function in relation to the botanical material rather than becoming the subtancc which gives the product its principal character.

The fact that the sunflower oil constitutes approximately 29.93% of the finished formulation is therefore not, by itself, sufficient to conclude that sunflower oil is the principal ingredient of Kcranat. Quantity and function arc two different considerations. A carrier or excipient may constitute a substantial portion of a formulation depending upon the physical characteristics, concentration and handling requirements of the active or principal material. The decisive question is whether the added substance changes the essential character of the product. This approach is also consistent with the I-ISN Explanatory Notes to heading 1302.

“(A) Vegetable saps and extracts.

The heading covers vegetable saps (vegetable products usually obtained by natural exudation or incision) and extracts (vegetable products extracted from the original vegetable material by solvents), provided that they are not specified or included in more specific headings of the Nomenclature. These saps and extracts differ _.from the essential oils, retinoids and extracted oleoresins of heading 33.01, in that, apart from volatile odoriferous constituents, they contain a jar higher portion of other plant substances (e.g., chlorophyll, tannins, hitter principles, carbohydrates and other extractive matter)…………..

“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 cue 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 (far instance, pyrethrum extract may be standardised by adding mineral oil to produce commercial grades with a standard pyrethrin’s 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 Or instance, certain quantities of starch are added to opium in order to obtain a product containing a known portion of morphine). The addition of such substances does not affect the classification of these solid extracts. flowerer extracts may not be subjected to additional extraction cycles or to purification processes, such as chromatographic purification, that increase or decrease certain compounds or compound classes to a degree that cannot be achieved solely by means of initial solvent extraction. Extracts may be simple or compound. Simple extracts are obtained by the treatment of only one variety of plant. Compound extracts are obtained either by mixing simple extracts or by treating mixtures indifferent 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 ‘,hint; they include compound falaj) extract, compound extract of aloes, compound extract olcinchonet, etc. “

Thus, the HSN framework does not proceed on the basis that every addition of another substance destroys the character of an extract. The relevant test is the effect of the addition. the added substance merely performs a technological function such as carrying, diluting, stabilizing or standardising the extract, and does not give the product the character of’ a food preparation or medicament, the mere presence of such substance cannot, by itself, take the product outside I leading 1302.

6.7.2 Application of the principle to Keranat

Applying the above principle to the present case, there is no material on record to establish that sunflower seed oil is the substance which gives Keranat its principal character. The botanical extracts remain the substantive botanical components of the product, whereas the sunflower seed oil perlbrms the supporting function of carrying, diluting and providing a medium for the uniform incorporation and standardisation of those extracts. Further, The 1 ISN Explanatory Notes themselves recognise that an oil may be added to an extract for standardisation. For instance, pyrethrum extract may be standardised by adding mineral oil to obtain commercial grades with a specified pyrethrin’s content. Although the example refers to mineral oil, the principle is relevant here: the mere presence of a substantial quantity of oil does not, by itself, alter the character or classification of an extract. Accordingly, the approximately 29.93% sunflower seed oil in Keranat has to be considered in terms of its functional role as a carrier, diluent and standardising medium, rather than merely by its percentage.

There is also no material to show that the sunflower oil has been added for the purpose of converting Keranat into an edible oil product, a food preparation or a finished nutraceutical intended for direct consumption. The product is not presented as sunflower oil, nor is its identity based upon the nutritional properties of sunflower oil. The presence of naturally occurring fatty acids or other constituents in sunflower oil does not, without evidence that such constituents are intended to provide the essential character of Keranat, change the nature of the product. The distinction is therefore between an ingredient which gives the product its essential character and an ingredient which merely facilitates the formulation of that product. In the present case, the material on record supports the latter position in respect of sunflower seed oil.

6.7.3 Rosemary extract

The same reasoning applies, though for a different functional reason, to rosemary extract. Rosemary extract is present in Keranat only in approximately 0.07% and, according to the material on record, its function is that of an antioxidant. Its presence is therefore incidental to the preservation and stability of the formulation and does not make rosemary extract the principal constituent of the product.

The presence of rosemary extract should accordingly be examined by reference to its function rather than merely by reference to the fact that it is another botanical ingredient. Its very small proportion and stated antioxidant function do not indicate that Keranat has acquired the character of a separate rosemary-based preparation.

6.7.4 Whether the additions change the character of the product

The next question is whether the addition of sunflower oil and rosemary extract has changed the character of Keranat from a botanical extract/raw material into a food preparation, medicament or other specifically covered preparation.

In my view, the material on record does not establish such a change.

The IISN Explanatory Notes make an important distinction in this regard. They recognise that extracts may be mixed with certain substances without losing their classification as extracts, while excluding them where the addition of other substances causes them to acquire the character of food preparations, medicaments or similar products. Therefore, the mere existence of a multi-ingredient formulation is not sufficient to determine classification; the nature, purpose and effect of each addition have to be examined.

6.7.5 This approach is also consistent with the principles applied by the CESTAT in Hindustan Pulverizing Mills v. Commissioner of customs (Import), Nhava Sheva, Final Order No. A/87651­87652/2018 dated 12.10.2018, wherein, while examining the classification of plant extracts under I leading 1302, the Tribunal referred to the Supreme Court decisions in O. K. Play (India) Ltd. v. CCE and CCE & Cus. Surat-II v Nirmala Dedham. The Tribunal noted that the IISN along with the Explanatory Notes provides a safe guide for interpretation and that functional utility and predominant use arc relevant considerations in classification.

“4.4 Supreme Court, in the case Of 0. K Play (India) Ltd. V (‘CE – 2005 (180) ELT 300 (S. C), prescribed the following for determination of classification.

(i) HSN along with explanatory notes provide a safe guide for interpretation of an entry.

(ii) Rules of interpretation will decide preference for one heading over other (Y523/2010 & C/606/2010

(iii) Functional utility, design, shape and predominate usage have also got to be considered

4.5 Supreme Court, in the case of CCE & Cus Surat-.11 J’ Minutia Devein – 2007 (207) E.L.7: 161 (SC.), held that principal use of the product needs to he seen.to decide classification 1.6 ‘leading 1302 covers, by and large, extracts in purer farm which arc used as a raw material for’ preparation of end products dawn the line in products’ meant _.for human consumption either as a drug or medicine or in food preparations. Further the end products prepared from the raw malarial of these headings are not classified here rather they are classified in more specific entries based on their usage. The chapter note of Chapter 13 makes this abundantly clear that 13.02 covers only those plant extracts which are in the form of raw material and it does not cover end products made out of these raw materials; the impugned product is not a raw material but an end product itself to be used as a fill Ozer and not going to be used as an input in any product meant far human consumption; therefore, cannot be C523/2010 & C/606/201.0 covered under CTII 13.02; it is class apart from the products which are covered under (71113.02.”

6.7.6 Accordingly, the presence of approximately 29.93% sunflower seed oil and approximately 0.07% rosemary extract cannot, by itself, be treated as sufficient to exclude Keranat from Heading 1302. The proper approach is to examine the product as a whole, keeping in view the nature of the botanical extracts, the functional role of the added substances, the intended use of the imported goods and the effect of those additions on the essential character of the product. On that basis, the additions in the present case appear to perform only supporting and technological functions and do not, -on the material available, confer upon Keranat the-character of a food preparation, nutraceutical preparation or medicament.

6.8 Why heading 2106 Was Not Accepted

The jurisdictional Commissioner proposed classification under Heading 2106, which covers “Food preparations not elsewhere specified or included.”

Heading 2106 is essentially a residual heading. ‘Therefore, before classifying a product under [ leading 2106, it is necessary to determine whether the product is specifically covered by another heading. In the present case, heading 1302 specifically covers vegetable saps and extracts, and the. IISN Notes recognize compound and standardized extracts. Keranat is not imported as a finished .food supplement or nutraceutical product. It is imported in bulk and subsequently used by manufacturers in making finished nutraceutical tablets.

Therefore, merely because Keranat is ultimately used in nutraceutical products does not mean that Keranat itself becomes a food preparation under heading 2106 at the time of importation. ‘the Department also did’ not establish that the addition. of sunflower oil and rosemary extract had transformed Keranat into a ready-to-consume food preparation. Accordingly, classification under I leading 2106 was not considered sustainable on the material available.

6.9 Application of Rule 3(b) — Essential Character . .

The Department also relied upon Rule 3(b), arguing that Keranat is a mixture of different components and that its essential character should .determine classification. The ^–essential- character test does not depend merely upon the percentage of a particular ingredient. The function, role, nature and commercial identity of the constituent are also relevant. Although sunflower seed oil constitutes approximately 29.93%, the record shows that it functions as a carrier, diluent and standardizing medium.

On the other hand:

• Millet Seed Extract – 60% active botanical ingredient;
• Wheat Seed Extract – 10% – active botanical ingredient;
• Rosemary Extract 0.07% antioxidant; and
• Sunflower Seed Oil – carrier/standardising medium.

Thus, the substantive botanical identity of Keranat is derived from the vegetable extracts, rather than from sunflower seed oil. The Department itself had also taken the position that sunflower oil did not impart the essential character of sunflower oil or another fixed vegetable oil to Keranat. Threefin)re, even if Rule 3(b) is applied, the essential character of Keranat is attributable to its botanical extracts, and not to the carrier/standardizing medium.

6.10 Rule i Vs Rule 3(b)

The Applicant principally relied upon Rule I of the CAR. Since I leading 1302 specifically covers vegetable saps and extracts and the IISN Notes expressly recognize compound and standardized extracts, the classification can substantially be determined under Rule 1 itself. Rule 3(b) is required only where classification cannot be resolved under the preceding rules. The mere fact that a product contains several constituents does not automatically require application of Rule 3(b), particularly where the IISN Notes themselves recognize compound extracts. Nevertheless, even when the essential-character test under Rule 3(b) is independently considered, it leads to the same conclusion: the botanical extracts impart the essential character of Keranat.

6.11 Determination of Correct Tariff Item

Once the subject product, Kcranat, is held to be appropriately classifiable under Heading 1302, the next issue for determination is the appropriate tariff item at the eight-digit level. CTII 1302 under Chapter 13 covers the following sub-headings and tariff items:

HS Code	Description
1302	VEGETABLE SAPS AND EXTRACTS; PECTIC SUBSTANCES, PECTINATES AND PECTATES; AGAR-AGAR AND OTHER MUCILAGES AND THICKENERS, WHETHER OR NOT MODIFIED, DERIVED FROM VEGETABLE PRODUCTS
1302 11 00	Opium
1302 12 00	Of liquorice
1302 13 00	Of hops
1302 14 00	Of Ephedra
1302 19	Other: Extracts:
1302 19 11	Of belladonna
1302 19 12	Of cascara sagrada
1302 19 13	Of nuxvomica
1302 19 14	Of ginseng (including powder)
1302 19 15	Of agarose
1302 19 16	Of neem
1302 19 17	Of gymnema
1302 19 18	Of garcinia and cambodge
1302 19 21	Of Withania somnifera
1302 19 22	Of Bacopa monnieri
1302 19 23	Of Berberis aristata
1302 19 24	Of Boswellia serrata
1302 19 25	Of Emblica officinalis
1302 19 26	Of Ocimum sanctum
1302 19 27	Of Capsicum annuum
1302 19 28	Of Phaseolus vulgaris
1302 19 31	Of Piper nigrum
1302 19 32	Of Pterocarpus marsupium
1302 19 33	Of Punica granatum
1302 19 34	Of Salacia reticulata
1302 19 35	Of Tagetes erecta
1302 19 36	Of Terminalia bellirica
1302 19 37	Of Curcuma longa
1302 19 38	Of Zingiber officinale
1302 19 39	Other
1302 19 50	Cashew shell liquid (CNSL), crude
1302 19 60	Purified and distilled CNSL (Cardanol)
1302 19 90	Other
1302 20 00	Pectic substances, pectinates and pectates
—	Mucilages and thickeners, whether or not modified, derived from vegetable products:
1302 31 00	Agar-agar
1302 32	Mucilages and thickeners, whether or not modified, derived from locust beans, locust bean seeds or guar seeds
1302 32 31	Guargum: Chemically treated
1302 32 39	Guargum: Other
1302 32 90	Guargum: Other
1302 39	Other:
1302 39 10	Tamarind Kernel Powder
1302 39 20	Kappa carrageenan
1302 39 90	Other

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 relevant tariff structure under Heading 1302, inter alia, provides specific tariff items for extracts of certain named plants/products, followed by the residual tariff item 1302 19 39 —- Other.

The tariff items under sub-heading 1302 19 specifically enumerate (—) extracts of various products, including belladonna, cascara sagrada, nux-vomica, ginseng, agarose, neem, gymnema, garcinia and cambodge, Withania somnifera, Bacopa monnieri, Berberis aristata, Boswellia serrata, Emblica officinalis, Ocimum sanctum, Capsicum annuum, Phaseolus vulgaris, Piper nigrum, Pterocarpus marsupium, Punica granatum, Salacia reticulata, Tagetes erecta, Curcuma longa and Zingiber officinale. The tariff further provides separate entries for CNSL and other specified products, while CTI 1302 19 39 covers “Other” extracts.

The Applicant had initially sought classification of the subject goods under CTI 1302 19 19. However, consequent upon the tariff restructuring effective from 01.05.2026, the Applicant subsequently amended its claim and sought classification under CTI 1302 19 39 (—-) Other.

On examination of the tariff entries, it is observed that Keranat does not correspond to any of the specifically enumerated extracts under CTI 1302 19. The product is a botanical preparation containing extracts derived from vegetable products, but none of the specific botanical extracts expressly covered by the preceding tariff items has been identified as the product itself for the purpose of classification under those specific entries. Accordingly, applying the principle that a specifically provided entry is to be preferred where applicable and where the goods are not covered by any of the specified entries, the appropriate residual entry is to be adopted, Keranat is appropriately classifiable under CTI 1302 19 39 (—-) “Other”.

It is pertinent to distinguish the above classification from classification under Heading 2106. Heading 2106 is a residual heading covering “Food preparations not elsewhere specified or included”, whereas CTI 1302 19 39 is a residual tariff item within Heading 1302 specifically covering other vegetable saps and extracts. Therefore, once the goods are found to be covered by the scope of Heading 1302 as vegetable extracts, the existence of the residual tariff item 1302 19 39 provides the appropriate tariff entry within that Heading. Classification under Heading 2106 would arise only where the goods are not appropriately classifiable under a more specific heading of the Tariff. Accordingly, the subject product “Keranat” is appropriately classifiable under CTI 1302 19 39 —-Other.

6.12. Overall/Cumulative Finding

On a cumulative examination of the manufacturing process, composition, nature of the ingredients, condition of the goods at importation, GIR, HSN Explanatory Notes, scope of Heading 1302, applicability of Heading 2106, essential-character principle and judicial precedent, it is found that Keranat is manufactured from vegetable sources and principally consists of millet seed extract and wheat seed extract, with sunflower seed oil functioning as a carrier/standardising medium and rosemary extract functioning as an antioxidant.

The HSN Explanatory Notes expressly recognise compound extracts and standardised extracts. The mere presence of sunflower seed oil, even though its proportion is approximately 29.93%, does not establish that Keranat has acquired the character of a food preparation. Its function as a carrier/standardising medium has to be taken into account. Similarly, the downstream use of Kcranat in the manufacture of nutraceutical tablets does not determine its tariff classification because classification is based on the goods as imported. Therefore, Keranat continues to retain the character of a compound and standardised vegetable extract.

Consequently, the classification proposed by the jurisdictional Commissioner under CTI 2106 90 99 is not sustainable on the material available.

6.13. Final Finding / Ruling

The final finding is that the product ‘Keranat’ is appropriately classifiable under Heading 1302 as a compound and standardised vegetable extract. In view of the tariff restructuring effective from 01.05.2026 and since Keranat is not covered by any of the specifically enumerated extract entries, the appropriate tariff item is CTI 1302 19 39 —-Other.

Accordingly, Keranat is classifiable under CTI 1302 19 39 of the First Schedule to the Customs Tariff Act, 1975, and not under CTI 2106 90 99 as proposed by the jurisdictional Commissioner.

7. I rule accordingly.