Home Case Index All Cases Customs Customs + AAR Customs - 2021 (10) TMI AAR This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (10) TMI 1397 - AAR - CustomsClassification of imported goods - API Supari - Chikni Supari - Unflavored Supari - Flavored Supari - Boiled Supari - Boiled & Cut Supari - classifiable under heading 0802 90 00 or under heading 2106 90 30? - HELD THAT:- The five goods, namely API supari, Chikni supari. unflavored supari, boiled supari and boiled & cut supari together. In these cases, 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, in addition to cutting. Addition of starch would be included under such process. These processes are clearly covered by the Chapter Note to Chapter 8 as well as the HSN, it is found that in the instant case, betel nuts atter being boiled are dried and this fact per se would not exclude the end-products from the scope of "dried nuts". Further, it is equally obvious to me that boiling or mere addition of certain additives for the limited purpose of enhancing preservation or appearance or ease of consumption per se does not result in obtaining a preparation of betel nut. The processes to which raw betel nuts have been subjected to obtain API supari, Chikni supari, unflavored supari, boiled supari and boiled & cut supari are squarely 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, which is sine qua non for a good to be classifiable under Chapter 21. Flavored supari - whether the addition of special flavoring agents would render the betel nuts into preparations of betel nuts, classifiable under Chapter 21? - HELD THAT:- The judgment of the Hon'ble Supreme Court of India in the case of CRANE BETEL NUT POWDER WORKS VERSUS COMMR. OF CUS. & C. EX., TIRUPATHI [2007 (3) TMI 6 - SUPREME COURT] has held that the process of cutting betel nuts into small pieces and addition of essential/non-essential oils, menthol, sweetening agent etc. did not result in a new and distinct product having a different character and use - Put simply, this decisions clearly imply that addition of flavoring 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 preparation of betel nut. Thus, all the six goods placed before me for consideration, i.e., API supari, Chikni supari, boiled supari, boiled & cut supari, unflavored supari, and flavored supari, merit classification under Chapter 8 of the First Schedule to the Customs Tariff Act, and more precisely, under the heading 0802. This is so in view of the fact that the processes to which raw green fresh betel nuts have been subjected to obtain the said six goods are squarely in the nature of processes mentioned in Note 3 to Chapter 8, and have not materially changed the essential character of betel nuts - the said six goods are not classifiable under sub-heading 2106 9030, as contended by the applicant, since they have not attained the character of "preparations" of betel nut, which is sine qua non fora good to be so considered.
|