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2023 (6) TMI 906 - CUSTOMS AUTHORITY FOR ADVANCE RULINGS, MUMBAIClassification of goods intended to be imported - Menthol Scented Sweet Supari - Flavoured and coated Illaichi - classifiable under CTH 0802 or under CTH 2106 - HELD THAT:- By virtue of application of Section 3(7) of the Customs Tariff Act, 1975 “any article which is imported into India shall, in addition, be liable to integrated tax at such rate, not exceeding forty per cent as is leviable under Section 5 of the Integrated Goods and Services Tax Act, 2017 on a like article on its supply in India, on the value of the imported article as determined under sub-section (8) or sub-section (8A), as the case may be. Based on the contents of the C.B.I. & C. Circular No. 163/19/2021-GST, dated 6th October, 2021, it is clear that the provision of Section 3(7) of the Customs Tariff Act, 1975 applies to scented supari classifiable under CTH 2106 90 30 and flavoured and coated illaichi classifiable under CTH 2106.90.99. In the instant case menthol scented sweet supari does not contain lime, katha (catechu) and tobacco. It will specifically contain menthol. Due to carrying out of such processes this product is not classifiable under Chapter 8 of the Customs Tariff Act, 1975. On the background of contending classifications, relevant chapter notes & supplementary notes, C.B.I.C. Circular, explanations in the IGST Rate Notification amended from time to time, and the Section 3(7) of Customs Tariff Act, 1975 instant product - betel nut product known as supari - menthol scented and sweet - is more appropriately classifiable as a betel nut preparation under Chapter 21 i.e., CTH 2106 90 30 than in any of the headings under Chapter 8. C.B.I. & C. circular legally supports this view. There cannot be a situation where same product is subjected to levy of basic customs duty under one CTH and levy of IGST under another CTH of the Customs Tariff Act, 1975. Hence, in view of Supplementary Note 2 of Chapter 21 of Schedule 1 of the Customs Tariff Act, 1975 read with Para 7 of the C.B.I. & C. Circular No. 163/19/2021-GST, dated 6th October, 2021 from F. No. 190354/206/2021-TRU and the provisions of Section 3(7) of the Customs Tariff Act, 1975 the scented sweetened supari merits classification under CTH 2106 90 30 - Due to processes of coating with edible colours, silver, menthol and adding of artificial sweeteners and aromatic additives to which illaichi is subjected to in the instant case the emerging product is definitely a value-added product of illaichi and also distinctly different from illaichi or cardamom classifiable under Chapter 9 of the Customs Tariff Act, 1975. In view of the above supplementary note to Chapter 21 read with Para 7 of C.B.I. & C. Circular No. 163/19/2021-GST, dated 6th October, 2021, same merits to be classified under Tariff Item 2106 90 99. The product namely Menthol Scented Sweet Supari merits classification under CTH 2106 90 30 - Flavoured and coated Illaichi merits classification under CTH 2106 90 99, of the First Schedule to the Customs Tariff Act, 1975.
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