Case Law Details
In re AB Mauri India Private Limited (CAAR Mumbai)
The Customs Authority for Advance Rulings (CAAR), Mumbai, pronounced Advance Ruling No. CAAR/Mum/ARC/46/2026-27 dated 16.07.2026 on an application filed by M/s. AB Mauri India Private Limited under Section 28H of the Customs Act, 1962 seeking classification of the imported product “Vistacell H.”
Material Facts
The applicant proposed to import Vistacell H, a product derived from non-genetically modified Saccharomyces cerevisiae (yeast cream) collected from fermentation tanks of sugarcane bioethanol plants. The manufacturing process involved washing and centrifugation of yeast cream, hydrolysis using a processing aid, spray-drying, sieving, quality testing, packaging and storage. The applicant stated that hydrolysis breaks down the yeast cell wall and enhances the availability of amino acids, peptides, nucleotides, beta-glucans and mannans.
The product comprised predominantly protein (amino acids) and was marketed as a feed additive used in animal feed for poultry, swine, horses and aquatic species. According to the applicant, it performed nutritional, prebiotic and postbiotic functions by supplying digestible peptides and amino acids, stimulating gut health and supporting immunity.
Procedural Background
The application was received by CAAR, Mumbai on 18.02.2026. The applicant sought an advance ruling on the tariff classification of Vistacell H under the First Schedule to the Customs Tariff Act, 1975.
Key Legal Issue
The Authority considered:
- Whether Vistacell H was classifiable under Tariff Item 2309 90 90 as a preparation of a kind used in animal feeding.
- If not, what would be the correct tariff classification.
Relevant Statutory Provisions
The ruling examined:
- Section 28H of the Customs Act, 1962.
- General Rules for Interpretation of the Customs Tariff.
- Heading 2309 relating to preparations of a kind used in animal feeding.
- Heading 2102 relating to active or inactive yeasts and other dead single-cell micro-organisms.
- Heading 2106 relating to food preparations.
- Relevant Chapter Notes and HSN Explanatory Notes.
- CBIC Instruction No. 34/2022-Customs dated 30.12.2022 relating to animal feed additives.
Applicant’s Submissions
The applicant contended that:
- Vistacell H was specifically covered by Heading 2309 as a feed additive used in animal feeding.
- The product had lost the essential characteristics of the original yeast through processing and therefore qualified as a preparation used in animal feeding.
- HSN Explanatory Notes to Heading 2309 specifically recognise feed additives supplying amino acids and safeguarding animal health.
- Product literature described Vistacell H as a feed material/feed ingredient and prescribed dosage for different animal species.
- CBIC Instruction No. 34/2022 recognised similar feed-grade inactive dry yeast products for import into India.
- The product was not classifiable under Heading 2102 because it was neither active yeast nor merely inactive yeast obtained by drying; instead, it underwent extensive processing including hydrolysis.
- Brazilian Binding Tariff Information decisions supported exclusion of heavily processed yeast products from Heading 2102.
- Heading 2106 was also inapplicable since it relates to food preparations for human consumption.
Findings
The Authority analysed the manufacturing process, tariff headings, Chapter Notes and HSN Explanatory Notes.
It observed that although the product underwent hydrolysis and other processing, the process did not isolate only the yeast cell wall. Instead, the product remained a hydrolysed whole yeast product containing both yeast cell wall and intracellular fractions.
The Authority held that:
- Heading 2309 covers preparations of a kind used in animal feeding, but the product was not classifiable there merely because it was used as a feed additive.
- The hydrolysis process did not change the essential character of the product into a preparation falling under Heading 2309.
- The Brazilian tariff decisions relied upon by the applicant concerned products consisting of isolated yeast cell walls and were distinguishable on facts.
- CBIC Instruction No. 34/2022 regulates imports of animal feed additives but does not determine tariff classification, which must be decided strictly under the Customs Tariff, Chapter Notes and HSN Explanatory Notes.
Judicial Reasoning
The Authority held that tariff classification must be determined by applying Rule 1 of the General Rules for Interpretation, read with the relevant Chapter Notes and HSN Explanatory Notes.
After examining the manufacturing process, it concluded that Vistacell H remained a hydrolysed inactive yeast product rather than an isolated feed preparation falling under Heading 2309. Since it retained both cell wall and intracellular components, the product was appropriately classifiable as inactive yeasts; other dead single-cell micro-organisms under Heading 2102.
Final Ruling
CAAR Mumbai ruled that:
- Vistacell H is not classifiable under Tariff Item 2309 90 90.
- Applying Rule 1 of the General Rules for Interpretation along with the relevant Chapter Notes and HSN Explanatory Notes, Vistacell H is correctly classifiable under Tariff Item 2102 20 00 as “Inactive yeasts; other dead single-cell micro-organisms.”
Author Bio
