TMI Blog2021 (7) TMI 1334X X X X Extracts X X X X X X X X Extracts X X X X ..... ses carried out on the same for cleaning, preserving and boiling are too minor to fall short of rendering them as preparations of betel nuts. Further, it would be inadvisable and inappropriate to approach the issue of classification of the said goods solely with the prism of the positive nature of Supplementary Note 2 to Chapter 21, as it seems to have been done in the order of the erstwhile AAR. The processes involved in making Boiled Supari are clearly covered by the Chapter Note 3 to Chapter 8. It is also found that in the instant case, betel nuts after being boiled are dried; and this fact per se would not exclude the end-products from the scope of dried nuts . Therefore, it is concluded that the processes to which raw betel nuts have been subjected to obtain Boiled Supari is squarely in the nature of processes referred to in the Chapter Note 3 to Chapter 8 and HSN Note. Therefore, at the end of the said processes, the betel nuts retain the character of betel nut and do not qualify to be considered as preparations of betel nut, which is sine qua non for a goods to be classifiable under Chapter 21. It is thus concluded that during the personal hearing, upon being explai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CTH 2106 90 30 as food preparation . 3.2 In support of his contention, the applicant has also relied on the advance ruling dated 7-8-2015 in the case of M/s Excellent Betelnut Products Private Limited [2015 (324) E.L.T. 619 (A.A.R.)], which was further relied upon in the advance ruling orders, both dated 31-3-2017 in the case of M/s. Oliya Steel Private Limited and M/s. Isha Exim Mumbai. 4. On registration of the application, the concerned Principal Commissioners/Commissioners of Customs were requested to furnish their comments, in the matter. In this regard, comments of the concerned Principal Commissioner of Customs (Import), ICD, Tughlakabad, New Delhi has been received, vide letter dated 21-6-2021. However, comments of other concerned Principal Commissioners/Commissioners of Customs have not been received in respect of this specific application, even as the comments of Principal Commissioner of Customs on the relevant subject are available with this office in certain other applications. Principal Commissioner of Customs (Import), ICD, Tughlakabad has submitted that in the light of Chapter Note 3 of Chapter 8 as long the goods retain the character of dried nut, they remai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the year 2009-10, an amendment was made in the Central Excise Tariff whereby betel nut product known as Supari of Tariff Item 2106 90 30 was excluded from Chapter 8 as per Fifth Schedule of the Budget; wherein, in the First Schedule to the Central Excise Tariff Act, in Chapter 8, Note 1 was substituted by amended note which states that Chapter 8 does not cover (a) inedible nuts or fruits; or (b) betel nut product known as Supari of Tariff Item 2106 90 30; in Chapter 21, after Note 5, Note 6 was inserted which states, in relation to product of Tariff Item 2106 90 30, the process of adding or mixing cardamom, copra, menthol, spices, sweetening agents or any such ingredients other that lime, katha (catechu) or tobacco to betel nut, in any form, shall amount to manufacture . In the light of the above provisions under the Customs Tariff Act and the Central Excise Tariff Act, it is stated that the item under reference is specifically covered under Tariff Item, 2106 90 30. They have also cited reference to ruling of the erstwhile AAR, New Delhi in the case of M/s. Excellent Betelnut Products Pvt. Ltd., M/s. Oliya Steel Private Limited, Kolkata and M/s. Isha Exim, Mumbai. I will rever ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ings given by the erstwhile AAR, New Delhi, which have been referred to by the applicant, I find that the erstwhile AAR has indeed concluded that various goods, including Boiled Supari, merit classification under sub-heading 2106 90 30. I find that in reaching this conclusion, AAR has been of the view that on account of the positive language of the Supplementary Note 2 to Chapter 21, it is not necessary for betel nut (supari) to undergo a change of character for it to be classified under Chapter 21. However, on the issue of classification of Boiled Supari, CESTAT, Chennai has passed an order dated 26-2-2021 in the case of M/s S.T. Enterprises v. Commissioner of Customs (Chennai VII) [2021 (378) E.L.T. 514 (Tri. - Chen.)]. In the said order, CESTAT, Chennai while, dealing with the issue of classification of Boiled Supari held that since the import goods are betel nuts whole , these would merit classification under Chapter 8 and specifically under Chapter 0802 80 10 .. . I take note of the aforesaid order of CESTAT, Chennai, observing that the same has not been decided in the applicant s case. 13. Having gone through the advance ruling application, supporting arguments for class ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
