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2015 (12) TMI 481 - AUTHORITY FOR ADVANCE RULINGS

2015 (12) TMI 481 - AUTHORITY FOR ADVANCE RULINGS - 2015 (324) E.L.T. 619 (A. A. R.) - Classification of processed betel nut - deemed manufacture - whether or not containing ingredients such as food starch, spices, mulethi, flavors, perfume etc., though not containing lime or katha (catechu) or tobacco, and will the resultant products be classifiable under the Chapter/Heading 21069030 - Held that:- From the preparation process of the four products, it is clearly seen that the original betel nut .....

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roasted in fire gas and thus undergoes a change in its character. Fourth product is a flavored supari which undergoes all the processes like unflavored supari but thereafter the products such as spices/or Mulethi are mixed with the cut pieces of supari. There can be no dispute that all these four products would be essentially known as supari. But as the learned counsel points out the original betel nut undergoes changes and is mixed with some other items like food starch, Mulethi, Copra etc. In .....

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to accept this contention that the preparation of the new product does not change its character of the betel nut but for the fact that immediately thereafter an amendment was brought even to the Central Excise Tariff which is to the following effect :

'6. In relation to product of tariff item 2106 9030, the process of adding or mixing cardamom, copra, menthol, spices, sweetening agents or any such ingredients other than line, katha (catechu) or tobacco to betel nut, in any form, shall .....

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ion, the applicant has sought a query in a peculiar language which is as under:- "whether the goods sought to be imported is processed betel nut as described therein above whether or not containing ingredients such as food starch, spices, mulethi, flavors, perfume etc., though not containing lime or katha (catechu) or tobacco, and will the resultant products be classifiable under the Chapter/Heading 21069030?" 2. The applicant who is in the betel nut business claims that he is currentl .....

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ecifically in Heading 08029000. He has given the manufacturing process of the 4 products which he intends to import is as under:- (i) API Supari : following processes are conducted on raw green fresh Betel Nut : Removing of Large impurities by Labor, Boiling in water for 6 hrs., Mixing Food Starch , Drying, Polishing and Packaging. (ii) Chikni Supari: following processes are conducted on raw green fresh Betel Nut: Removing of Large Impurities by Labor, Slicing in small pieces, Boiling in water f .....

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gnetic Metal Detectors and Packaging. (iv) Flavored Supari : following processes are conducted on raw dried Betel Nut : Removing of Large Impurities by Labor, Removing of small impurities by de-stoner, Metal Deflection (Removal of metal item, if any), Garbling in Automatic Garblers, Polishing in Polishing Machine, Sterilization to remove bacterial count, 3 stage cutting blowing of weightless particles in blower, Gravity separation by Automatic Gravity Separation Machine, Roasting in Fire Gas Rot .....

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an only amount to a preparation. 4. As against this, according to the Revenue, the aforementioned 4 products would be neatly covered in Chapter 8 of the Customs Tariff. 5. Chapter 21 provides Supplementary Notes, Note No. 2 reads as under: "In this Chapter Betel Nut product known as SUPARI means any preparation containing Betel-Nuts, but not containing any one or more of the following ingredients, namely: Lime, Katha (catechu), and tobacco whether or not containing any other ingredients, su .....

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and Chikni Supari. 7. Insofar as the other two products are concerned, the unflavored Supari undergoes a process like removal of metal item then the product undergoes the process garbling and polishing in the polishing machine then it is further cut and cleaned in a blower machine then it is roasted in fire gas and thus undergoes a change in its character. Fourth product is a flavored supari which undergoes all the processes like unflavored supari but thereafter the products such as spices/or M .....

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ntative very vehemently contended that firstly supari which is betel nut should be covered under Chapter 8. His further argument is that in order to fit in Chapter 21, supari which is also known as betel nut should undergo a different character change meaning it should not remain a supari. The contention is incorrect, if we go by the positive language of Supplementary Note No. 2 which does not require any such basic change in the character of the product like betel nut. The fist argument is, the .....

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arately under the Schedule to the Tariff Act. 30. In our view, the process of manufacture employed by the appellantcompany did not change the nature of the end product, which in the words of the Tribunal, was that in the end product the betel nut remains a betel nut . The said observation of he Tribunal depicts the status of the product prior to manufacture and thereafter. In those circumstances, the views expressed in the D.C.M. General Mills Ltd. (supra) and the passage from the American Judgm .....

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