2025 (2) TMI 753 - AT - Customs

Classification of Natural Beta Carotene Powder - classifiable under Tariff item 3203 00 20 of the Customs Tariff Act 1975 or under Customs Tariff Heading 2106 90 60? - HELD THAT - Chapter 3203 is meant for Tanning or dyeing extracts; tannins and their derivatives; dyes pigments and other colouring matter; paints and varnishes; putty and other mastics; inks which clearly establish the fact that these colouring products are industrial products and not edible products as the case of the impugned product. Hence the question of classifying the product under Chapter Heading 3203 is ruled out. The supplier s brochure clearly mentions that Beta Carotene is used as colouring matter in a variety of food and beverages applications as it gives bright yellow-orange colour to the food products when it is added. Chapter 2106 9060 which is meant for Food flavouring material is nothing but a product which provides colouring for the food items which are edible the impugned product being a colouring food agent is specifically covered under this category hence rightly classifiable under Customs Tariff Heading 2106. The products are rightly classifiable under Chapter Heading 2106 9060 consequently impugned order is upheld. Conclusion - The product fell under Tariff Heading 2106 as a food flavoring material specifically for providing color to edible items. Appeal dismissed.

Summary

The appeal in this case was filed against an Order-in-Appeal passed by the Commissioner of Customs (Appeals), Bangalore, concerning the classification of the product 'Natural Beta Carotene Powder' imported by M/s. Bioextract. The core legal issue revolved around the proper classification of the product under the Customs Tariff Act, 1975.The appellant contended that the product should be classified under Tariff Heading 3203 as a food colorant, while the Revenue classified it under Tariff Heading 2106. The appellant argued that the product is used as a food colorant and should be classified accordingly. They also claimed that the authorities did not provide evidence to support the classification under Tariff Heading 2106 and that an alternative classification under Tariff Heading 2936 was ignored.On the other hand, the Revenue argued that the product, being extracted from dried carrot, should be classified under Tariff Heading 2106 as a coloring agent for non-edible products. They referenced Chapter 32 of the Customs Tariff Act, which deals with tanning or dyeing extracts, to support their classification.After hearing both parties, the Tribunal examined the nature of the product and its usage. The Tribunal noted that the product was used as a food colorant in the manufacturing process of food products, making it an edible product. The Tribunal compared the relevant Tariff Headings and concluded that the product fell under Tariff Heading 2106 as a food flavoring material, specifically for providing color to edible items. Therefore, the Tribunal upheld the classification under Tariff Heading 2106 and dismissed the appeal.In summary, the key legal issue in this case was the classification of the 'Natural Beta Carotene Powder' under the Customs Tariff Act. The Tribunal considered the nature of the product, its usage, and the relevant Tariff Headings to determine that it should be classified under Tariff Heading 2106 as a food flavoring material. The Tribunal's decision was based on the edible nature of the product and its intended use in coloring food items.