Home Case Index All Cases Customs Customs + AAR Customs - 2024 (3) TMI AAR This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2024 (3) TMI 807 - AAR - CustomsClassification of goods intended to be imported - API Supari - Chikni Supari - Unflavoured Supari - Flavoured Supari - Boiled Supari - classifiable under Chapter/Heading 2106 90 30 as food preparation or under Chapter Heading 0802 80 90 or any other sub-heading of 0802 80 as areca nut? - HELD THAT:- In the instant case, betel nuts after being boiled are dried and this fact per se would not exclude the end-products from the scope of “dried nuts”. Further, boiling or mere addition of certain additives for the 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, Unflavoured Supari, Flavoured Supari and Boiled Supari are squarely in the nature of processes referred to in the Chapter Note 3 to Chapter 8 and HSN. 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 goods to be classifiable under Chapter 21. Flavoured supari - HELD THAT:- The question to be answered is whether the addition of special flavouring agents would render the betel nuts into preparations of betel nuts, classifiable under Chapter 21. In this regard, the judgment of the Hon’ble Supreme Court of India in the case of M/s. Crane Betel Nut Powder Works [2007 (3) TMI 6 - SUPREME COURT] and of the CESTAT, Chennai in the case of M/s. Azam Laminators Pvt. Ltd. [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 goods, meaning in the present case betel nut would continue to remain betel nut and not become preparation of betel nut. All the five goods placed before me for consideration, i.e., API Supari, Chikni Supari, Boiled Supari, Unflavoured supari, and Flavoured supari, merit classification under Chapter 8 of the First Schedule to the Customs Tariff Act, and more precisely, under the sub-heading 0802 80. 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 five 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. Further, the said five goods are not classifiable under sub-heading 2106 90 30, since they have not attained the character of “preparations” of betel nut, which is sine qua non for a goods to be so considered.
|