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TMI Blog2021 (3) TMI 1237X X X X Extracts X X X X X X X X Extracts X X X X ..... s Authority for Advance Rulings (CAAR, in short) in New Delhi and Mumbai w.e.f. 04.01.2021, the said application was transferred to CAAR, Mumbai in terms of section 28-F(3) ibid and regulation 31 of CAAR Regulations, 2021. 2. The applicant was given an opportunity of hearing on 23-03-2021, wherein, they were inter alia, asked to explain as to why their application seeking classification of four products shouldn't be treated as four different applications. In the meantime, a request was also received from the applicant to include the product 'Boiled supari' in their application, along with addition of another issue on which an advance ruling was sought, i.e', whether the Notification No. 50/20l7-Cus., dated 30.06.2017 is applicable and if so whether the benefit of exemption listed under Sr. No. 103 of the table under the said notification is available to the commodities (products manufactured out of betel nuts) under CTH 2106 90 30 Subsequently, four different applications have been received from the applicant for each of the original four products for which advance rulings were sought, accompanied by the prescribed application fee. 3. Considering the fact that the origina ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... end product, and therefore, doesn't merit classification under sub-heading 2106 90 20 Reference has also been made to the decision of the Hon'ble Supreme Court in the case of M/s. Crane Betelnut Powder, reported at 2007(210) E.L.T. 171(S.C.). The Commissioner of Customs, Mundra has not offered any comments. 6. Sri Somesh Arora, advocate of the firm M/s. Amicus Rarus appeared on behalf of the applicant in the hearing conducted in the virtual mode. The learned advocate reiterated their submissions made in their application for advance ruling and also stated that the ruling given by the AAR, New Delhi in respect of M/s. Excellent and M/s Oliya should be followed for the sake of uniformity. Subsequent to the hearing, a synopsis of the arguments of the applicant has been received urging therein to entertain the request for advance ruling for all the five products and to condone defects, if any. Reference has once again made to the advance rulings given in the cases of M/s. Excellent Betelnut Products and M/s Oliya Steel, with a request to provide advance rulings in respect of all the five products in lines of the advance rulings already given. 7. The five products under consid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry to examine the contending chapters of the tariff. The relevant notes to chapter 8 lay down the following :- '3. Dried fruits or dried nuts of this Chapter may be partially rehydrated, or treated for the following purposes : (a) For additional preservation or stabilization (for example, by moderate heat treatment, sulphuring, the addition of sorbic acid or potassium sorbate); (b) To improve or maintain their appearance (for example, by the addition of vegetable oil or small quantities of glucose syrup), provided that they retain the character of dried fruit or dried nuts.' In the chapter 8, areca nuts, whole, split, ground, and two residuary sub-headings are accommodated under 0802 80 10, 20,30,90, and 0802 90 00, respectively. 9.3 Chapter 21 includes within its ambit, miscellaneous edible preparations. As already mentioned, the supplementary note 2 to the said chapter lay down that, '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. such as cardamom. copra. menthol.' ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion of the unwanted portions from the desired end products or sterilization to remove/kill bacteria. Some of the products, namely, chikni/unflavoured/flavoured supari are subject to cutting or slicing. The relevant portion of the HSN as reproduced above makes it clear that even after cutting/slicing, the resultant products remain classified under chapter 8. Similarly, processes like drying, sorting, polishing, packaging etc. do not alter the nature of the product in any significant manner to necessitate a change of classification. The next group of processes, i.e., boiling or roasting in fire gas rotary roasters, when examined in the light of the relevant notes to chapter 8, also leads to the conclusion that even after such processes, the resultant products do not go out of the purview of chapter 8. 12. One is then confronted with the question as to whether mixing of food starch would result in a product substantially different to be characterised as a preparation? The answer to that question also appears to be clearly in the negative when the relevant chapter notes make it clear that addition of sugar/glucose syrup/vegetable oil do not significantly alter the character of the ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al character though in a modified form." (emphasis supplied) 14. In the case of Azam Laminators Pvt. Ltd., reported at 2019 (367) E.L.T. A22 (Tri.- 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 Chennai bench of 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 07.07.2009. The Hon'ble CESTAT, in coming to the above decision, relied upon the decisions of the Hon'ble Supreme Court decisions in the cases of M/s. Crane Betel Nut Powder Works and M/s. Satnam Overseas Ltd. [2015 (318) E.L.T. 538 (S.C.)] 15. I find the observations of the Hon'ble Supreme Court in the case of Crane Betel Nuts and the decision of Hon'ble Tribunal in the case of Azam Laminators to be extremely enlightening. Even as I recognize that the above decisions were rendered in the context of manufacture in central excise, the principle laid d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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