Goods containing odoriferous substances used as industrial raw materials are classifiable under Heading 3302, provided these substances form the basis of the mixture, regardless of whether they are the predominant constituent.

FINAL ORDER NO. 85581/2026

PER: P. ANJANI KUMAR

1. M/s. Godavari Udyog¹the appellant imported goods described as “Food Seasoning Material for Snack Foods” classifying the same under Customs Tariff Item²CTI 3302 10 10 of the Customs Tariff Act, 1975 and filed a Bill of Entry dated 18.06.2015. On the basis of the test report given by Deputy Chief Chemist, Revenue sought to reclassify the goods under CTI 2103 90 40 and accordingly issued a show cause notice dated 24.11.2015 which was confirmed in order-in-original dated 21.12.2015. The original authority imposed a fine of Rs.1,75,000/- in lieu of confiscation and a penalty of Rs.25,000/- on the appellant.

2. On appeal filed by the appellant, learned Commissioner of Customs (Appeals), Mumbai-II upheld the order-in-original.

3. Shri Sanjay Singhal, learned counsel for the appellant submits that the health certificate issued at the foreign port indicated the ingredients of the impugned goods as follows:

“a. Food Seasoning Material for Snack Food-SAI 380.001

Ingredients Salt, Onion Powder, Sugar, Wheat Flour, Maltodextrin, Garlic Powder, Lactic Acid, Natural Herbs (Parsley Flakes, Spearmint Powder) Hydrolyzed Vegetable Protein, Natural Onion Flavour Natural Yogurt Flavour.

b. Food Seasoning Material for Snack Food-SAI 090.001

Ingredients A dehydrated blend of Whey, Partially Hydrogenated Soyabean Oil, Maltodextrin, Salt, Citric Acid, Lactic Acid, Natural Food Colour E160a, Oleoresin Paprika, Nattural Food Colour Tumeric Extract E100, Paprika Powder, nature Identical Flavour.

c. Food Seasoning Material for Snack Food-SAI 058.002)

Ingredients Maltodextrin, Salt, Dehydrated Garlic, Dextrose, Encapsulated Black Pepper, Cumin, Red Chili Nature Identical Flavouring, Natural Paprika Oleoresin, Tricalcium Phospate.”

4. The Deputy Chief Chemist reported as under:

“a. Dy CC Lab No. 250 dated 9.7.2015 (SAI 380.001) – The sample is in the form of Yellowish Powder with grayish particulars having Spearmint Flavour. It is a food preparation containing Salt, Carbohydrate, Proteineous matter, Maltodextrin, flavouring Agent and additive. It is free from Alcohol. (Annexure D)

b. Dy CC Lab Lab No. 251 dated 9.7.2015 (SA1090.001) - The sample is in the form of Orange coloured Powder. It is a food preparation containing Salt, Maltodextrin, Proteineous matter, Fatty Matter, favouring Agent & additives. It is free from Alcohol. (Annexure E)

c. Dy CC Lab No. 252 dated 9.7.2015 (SA1058.002) - The sample is in the form of Orange Coloured Powder having spicy odour. It is a food preparation containing Salt, Maltodextrin, Carbohydrate, Proteineous matter, inorganic phosphate, flavouring Agent and additive. It is free from Alcohol.”

5. The learned counsel further submits that the impugned order ignores the HSN Explanatory Notes to Customs Tariff Heading 3302 which covers the goods containing one or more odoriferous substances combined with added diluents or carriers such as vegetable oil, dextrose or starch. The finding of the appellate authority that the goods of Heading 3301 are not present in the goods is incorrect as the list of the goods appended to Chapter 33 include paprika, parsley and spearmint. He further submits that in terms of Rule 2(b) of the General Rules of Interpretation³GRI, reference to mixtures indicate combination of that material with other substances. Rule 3(b) of GRI prescribes that mixtures have to be classified as per the component which gives th