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2021 (3) TMI 1306 - AUTHORITY FOR ADVANCE RULINGS CUSTOMS, NEW DELHIClassification of imported goods - processed betel nut containing ingredients such as food starch, spices, mulethi, flavours, essence (food grade) etc. and not containing any lime or katha or tobacco - API supari - Chikni supari - unflavoured supari - goods imported by the applicant from the countries, East Timor, Bangladesh, Myanmar, Thailand, Indonesia, Vietnam, Sri Lanka & Laos - HELD THAT:- One set of processes are found to be intended for cleaning; the second set for enhancing preservation; and third set for enhancing appearance or presentation, which are clearly covered by the Chapter Note 3 to Chapter 8. Addition of starch would be included under such process. The applicant has contended that boiling of raw betel nut is more than moderate heat treatment. However, in view of the Chapter Note referring to moderate heating, HSN Note and common understanding of boiling, the contention of the applicant cannot be agreed and it is held that boiling of betel nut is akin to moderate heat treatment. Thus, the processes to which raw betel nuts have been subjected to obtain API supari, Chikni supari and unflavoured supari are in the nature of processes referred to in the Chapter Note 3 to Chapter 8 and HSN Note. Therefore, at the end of the said processes, the betel nuts retain the character of betel nut and do not qualify to be considered as preparations of betel nut, classifiable under Chapter 21. Flavoured supari - HELD THAT:- The judgment of the Hon’ble Supreme Court of India in the case of M/s. Crane Betel Nut Powder Works and of the CESTAT, Chennai in the case of AZAM LAMINATORS PVT. LTD. VERSUS COMMISSIONER OF CENTRAL EXCISE, TRICHY (VICE-VERSA) [2019 (3) TMI 782 - CESTAT CHENNAI] [where scented betel nut was being manufactured by cracking of dried betel nut into small pieces, and thereafter, gently heating it with addition of vanaspati oil, sweetening and flavouring agents and marketed in small pouches as Nizam Pakku (in Tamil)/Betel Nut (in English), the Hon’ble CESTAT held the resultant product classifiable under sub-heading 0802 90 19 of Central Excise Tariff and not under 2106 90 30 as supari for period after 7-7-2009] are relevant. Put simply, these decisions clearly imply that addition of flavouring agents do not change the character of the good, meaning in the present case betel nut would continue to remain betel nut and not become preparations of betel nut. All the four goods placed for consideration, i.e., API supari, chikni supari, unflavoured supari, flavoured supari merit classification under Chapter 8 of the First Schedule to the Customs Tariff Act, and more precisely, under the Heading 0802, and not under sub-heading 2106 90 30, as contended since they have not attained the character of “preparations of betel nut” despite the processes raw betel nuts have been subjected to and addition of starch (and flavouring agents in the case of flavoured supari).
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