TMI Blog2021 (8) TMI 729X X X X Extracts X X X X X X X X Extracts X X X X ..... under sub-heading 21069030, as contended. Accordingly, it is held that the benefit of the exemption contained at Sr. No. 103 of the Notification to. 50/2017-Cus., dated 30.06.2017 would not be available to the products, namely, API supari, chikni supari, unflavoured supari, flavoured supari, and boiled supari. The conclusions in the said proceedings remain equally valid in the present proceedings considering the fact that the products in question are identical. Therefore, in view of the aforesaid, any ruling in respect of boiled supari not given - In respect of the products API supari, chikni supari, unflavoured supari, and flavoured supari, it is held that their correct classification is heading 0802 of the first schedule to the Customs Tariff Act, 1975. - CAAR/Mum/ARC/ 5 & 6/2021 - - - Dated:- 29-4-2021 - (M.R. Mohanty) Customs Authority for Advance Rulings Ruling Two applications have been filed on 24.02.2021 by Ms. Hemlata H. Shingote, Advocate representing the firm M/s. Amar Legal on behalf of their clients, M/s. S R G Enterprises and M/s. SYM Company, seeking advance rulings in respect of classification of five products, namely, API supari, chikni s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . lsha Exim, and has stated that pure betelnut or supari, which has not undergone changes, do not merit being labelled as products of supari, and therefore, would remain classified under chapter 8. It is his contention that there doesn t appear to be any change in the nature of the end product, and therefore, proposal of classification under sub-heading 21069020 has no merit. 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.). These comments have been shared with the respective applicants. 5. Both the cases were listed for nearing on 08.04.2021, at different times, through virtual mode. However, communications were received from the applicants requesting for adjournment. These requests were accepted and the bearings were adjourned to 15.04.2021. The applicants have submitted catalogue/photographs of the products intended to be imported by them along with samples of these products as well as a copy of the decision of the Hon ble High Court of Madras in the case of M/s. lsha Exim holding that the advance ruling issued In that case is binding on DRI. The applicants were represe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ), 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 08028010, 20, 30, 90, and 08029000, respectively. 9.1 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. In this chapter, the related entry, with respect to betel nuts, is the sub-heading 21069030, i.e., betel nut products known as supari. 10. In matters of classification of goods entered/intended for import/export, the Harmonized Commodity Description and Coding System of the World Customs Organization, comprising of more than 5,000 commodity groups, arranged in a legal and logical structure and supported by well-defined rules to achieve uniform classification, is used by the signatory mem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t manner to necessitate a change of Classification. The next group of processes, i.e., boiling or roasting in fire gas rotary boosters, 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 areca/betel nuts, and even after such addition, the resultant product continue to remain classified under chapter 8. Finally, one comes to the instance of addition of spices/MuIethi/liquid perfume in the automatic mega blenders as is stated in respect of flavgured supari. Before answering that question, I feel necessary that the facts of the case of M/s. Crane Betel Nut Powder Works should be discussed. 13. M/s. Crane Betel Nut Powder Works, as per the Hon ble Supreme Cour ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the resultant product classifiable under sub-heading 08029019 of central excise tariff and not under 21069030 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 (5.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 1 recognize flow rhe above decisions were rendered in the context of manufacture in central excise, the principle laid down therein is quite relevant to the situation which is the subject matter of the proceedings before me. Being guided by the aforesaid principle, I paraphrase the question before me to ask whether the processes to which raw areca nut, indisputably falling under chapter 8, is subjected are significant and substantive enough to render the said five items as preparations of areca cut, to merit classification under chapter 21 or fall short. Going by the ratio of the decision laid down by the Hon ble ..... X X X X Extracts X X X X X X X X Extracts X X X X
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