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2024 (4) TMI 85 - HC - CustomsClassification of imported goods - Menthol Scented Supari - to be classified under Chapter 21 as a product of betel nut known as Supari or under Chapter 8 as just areca nut? - HELD THAT:- Firstly, vide Finance (No.2) Act, 2009 dated 19th August, 2009, there has been an insertion of Note 6 in Chapter 21, which specifically relates to Tariff Item 2106 90 30 relating to ‘supari’ and stating that the process of adding or mixing cardamom, copra, menthol, spices, sweetening agents or any such ingredients other than lime, katha (catechu) or tobacco to betel nut, in any form, shall not amount to “manufacture”. However, this amendment was only under the Central Excise Tariff Act and not the Customs Tariff Act. Secondly, w.e.f. 1.7.2017, the GST Act was introduced and the concept of taxation itself has undergone a change from ‘manufacture’ to ‘supply’. The Supplementary Note 2 in Chapter 21 of CGST Tariff is also verbatim the same as Supplementary Note 2 under Chapter 21 of the Customs Tariff Act, 1975. This only exemplifies the intention of the legislature to have always treated ‘supari’ as a special entry and not as a betel nut under the general entry of ‘nuts’. There are force in the submission of the Learned Counsel for the Appellant that the Customs Tariff Act still continues to employ the same phraseology that was available under the unamended Central Excise Tariff Act and that too when the Apex Court had dealt with the same issue, the ratio laid down by the Apex Court in CRANE BETEL NUT POWDER WORKS VERSUS COMMR. OF CUS. & C. EX., TIRUPATHI [2007 (3) TMI 6 - SUPREME COURT] case would still hold the field and apply to the case on hand, it cannot be accepted that the said limb of argument, in view of our categorical finding that there being a specific entry for ‘Supari’ under Chapter 21 and it would take precedence over the general entry under Chapter 8, the question of applying the ratio laid down by the Apex Court would not even arise for the simple reason that the issue on hand is only revolving around classification of ‘Supari’ under Chapter 8 or Chapter 21 and the facts of the case before the Apex Court was entirely different and the issue was whether process involved in manufacture of sweetened betel nut pieces would result in a totally new product or not. Under the Customs Tariff Act, the question of manufacture loses its relevance since the Act deals only with the tariff applicable to the goods or products imported from outside the country, in an as is where is basis, or rather the product as imported in whatever form is the basis for levy of Customs Tariff. Thus, the judgment of the Hon'ble Supreme Court in Crane Betel Nut Powder Work's case cannot be said to be a bar U/s. 28(i) of the Customs Act. The findings of the CAAR are just and proper, applying the legal position in a proper perspective. The same does not warrant interference in appeal. There are no irregularity in the Advance Ruling issued by the Authority and the same is not hit by Clause B of sub-section 2 of Section 28-I of the Customs Act, 1962 as not being covered by earlier rulings on the same subject matter, by the Appellate Tribunal or Court. Appeal dismissed.
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