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2024 (12) TMI 1467 - AAR - CustomsClassification of goods - Provisionally preserved Areca nut (whole) and Provisionally preserved Areca nut (split) - to be classified under heading 2008 19 20 which pertains to Other Roasted Nuts and Seeds or under Chapter 8 which covers dried fruits and nuts? - HELD THAT - As per HSN Explanatory Notes Heading 2008 covers fruit nuts and other edible parts of plants whether whole in pieces or crushed including mixtures thereof prepared or preserved otherwise than by any of the processes specified in other Chapters or in the preceding headings of this Chapter. Specifying what is included in this heading the explanatory note states that almonds ground nuts areca (or betel) nuts and other nuts dry-roasted oil-roasted or fat-roasted whether or not containing or coated with vegetable oil salt flavours spices or other additives. Dry-roasting oil-roasting fat-roasting as a process are very much a part of Chapter Heading 2008 by virtue of HSN Explanatory Notes. It is also pertinent to observe that none of these processes are mentioned in the Chapter Note 3 to Chapter 8 of the Customs Tariff Act 1975 as well as HSN Explanatory Notes to Chapter Heading 0802. It is an established fact that in case of any doubt the HSN is a safe guide for ascertaining the true meaning of any expression used in the Tariff Act. The case of Commissioner of Customs Central Excise v. Phil Corporation Ltd. 2008 (2) TMI 3 - SUPREME COURT is directly relevant and applicable in the instant case of the applicant. In the judgment of the said case Honourable Supreme Court has held a number of cases this Court has clearly enunciated that HSN is a safe guide for the purpose of deciding issues of classification. In the present case the HSN Explanatory Notes to Chapter 20 categorically state that the products in question are so included in Chapter 20. The HSN Explanatory Notes to Chapter 20 also categorically state that It s products are excluded from Chapter 8 as they fail in Chapter 20. From the Apex Court s foregoing judgments it is observed that the roasted nuts find specific mention in the then Chapter 20 of the then Central Excise Tariff Act and the Chapter 20 of the Schedule I of the Customs Tariff Act 1975 as well as corresponding HSN Explanatory Note. It is important to pay attention to the fact that in the above referred HSN explanatory note a process of roasting is not specifically mentioned as a process of preservation or stabilization or a process to improve or maintain the appearance - Hon ble Apex Court s conclusions corroborate the finding that the process of roasting is not covered by Note 3 to Chapter 8 and hence these products roasted betel nuts are not classifiable under Chapter 8 of the Tariff. Conclusion - The Roasted areca/betel nuts fall under Custom Tariff Heading 2008 specifically under CTI 2008 19 20 Other roasted nuts seeds of Chapter 20 of the First Schedule of the Customs Tariff Act 1975.
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