TMI Blog2023 (6) TMI 653X X X X Extracts X X X X X X X X Extracts X X X X ..... eds . In view of specific CTH 2008 19 20: Other roasted nuts seeds in chapter 20 of the first schedule to the Customs Tariff, HSN Explanatory note to CTH 2008, various Supreme Court rulings upholding guiding value of the HSN Explanatory notes for deciding classification under Customs Tariff Act, 1975 and previously mentioned two Supreme Court judgments classifying roasted nuts which include almonds, betel nut and other nuts under chapter 20 by taking recourse to HSN explanatory note to Tariff Heading 2008 I hold that roasted betel nuts are correctly classifiable under the tariff item 2008 19 20 of chapter 20 of the first schedule of the Customs Tariff Act, 1975. Thus, the Roasted betel nuts fall under Tariff heading 2008, specifically under Tariff entry 2008 19 20: 'Other roasted nuts seeds' of chapter 20 of the first schedule of the Customs Tariff Act, 1975. - SHRI NARENDRA V. KULKARNI PRINCIPAL COMMISSIONER CUSTOMS AUTHORITY FOR ADVANCE RULINGS, MUMBAI) Present for the applicant: Shri. B. Satish Sundar, Advocate, Shri. N. Balaji, Advocate, Shri. Faizal Anif Toply Present for the Department: Ms. Sowmya Nuthalapati, Joint Commissioner, Custom Commi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d brings about uniformity in the final product. Further, the preparation time of roasted Areca Nut has also drastically reduced, in comparison with the manual method of preparation. Further, applicant has submitted that the following processes are involved in the Preparation of Roasted Areca Nut: The raw/fresh areca nut undergoes various process of preparation for roasting, which are detailed below: Firstly, the raw areca nut is de-husked and its outer shell is removed. Thereafter, the de-husked nut is scattered to check for any visible impurities and the same is cleaned, pursuant to which the raw de-husked areca nut/betel nut is left to dry. Secondly, the cleared and dried de-husked areca nuts are fed into the seed roasting oven/machine and heated in the temperature of above 100 Degree Celsius. The roasting is done using firewood/ palm kernel-based ovens/machines and the temperature of the flames is around 400 to 600 degrees Celsius. As a result, the betel nuts would be roasted well beyond 100 degrees Celsius, usually in the range of 130-150 degrees Celsius. Thirdly, the areca nuts are removed from the roasting oven and allowed to cool at normal room tempera ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d betel nut. These roasted betel nut products are sold in the market without any additives or without subjecting to any other preparation than the roasting process. These roasted betel nut variants are approved by government agency viz. FSSAI. 6. The Roasted Areca Nut is edible in its actual form and suitable for immediate consumption. It is masticatory and used for a variety of reasons such as stress reliever, mouth freshener, concentration improver and digestive following food intake. Therefore, the process and the end product viz. Roasted Areca Nut and Roasted Areca Nut Cut is most suitable to be classified under Chapter 2008 19 20 of the Customs Tariff Act, 1975. Statement containing the applicant's interpretation of law and/or facts in respect of the issues on which the advance ruling is sought appears to be a complete reproduction of the CAAR, Mumbai's ruling No. CAAR/Mum/ARC/44,45 46/2022 dated 07.12.2022 in the case of M/s. Shahnaz Commodities International (P) Ltd, Chennai, which applicant has thought would squarely apply to their instant case. 2.2 As per the submissions made by the applicant, Roasted areca nuts are specifically covered and are clas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ported in 2007 (210) E.L.T 171 (S.C) stating that this is not applicable to their case in view of AAR ruling in case of M/s Excellent Betel Nut and a recent CAAR ruling in case of M/s Shahnaz Commodities International Pvt Ltd., Chennai. In the context of their submissions, the applicant has requested to issue ruling by holding the classification of the roasted areca nuts under CTH 2008 19 20 of the Customs Tariff Act, 1975. They have invited attention to CAAR, Mumbai's ruling CAAR/Mum/ARC/44,45 46/2022 dated 7.12.2022 on identical product. 3. Comments of the jurisdictional Customs Commissionerates namely Nhava Sheva, Dist, Raigad, Maharashtra, Chennai-II Customs Commissionerate, Chennai and Krishnapatanam port, Dist. Nellore falling under Custom Commissionerate Vijaywada, Andhra Pradesh were sought in response to the applicant's advance ruling applications. Additional Commissioner Customs (Preventive), Custom House, Krishnapatanam port, Dist. Nellore under Custom Commissionerate Vijaywada, Andhra Pradesh has responded to the application and this response is verbatim reproduced below. 3.1 'Areca nut', botanically known as Areca catechu, is a tropical plant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cluded - Nuts, ground nuts and other seeds, whether or not mixed together: 3.7 CTH 2008 19 20 --- Other roasted nuts and seeds. There is no specific description of Areca nut under this heading. 3.8 As per HSN Explanatory Notes, heading 2008 covers fruit, nuts and other edible parts of plants, whether whole, in pieces or crushed, including mixtures thereof, prepared or preserved otherwise than by any of the processes specified in other Chapters or in the preceding headings of this Chapter. 3.9 The fresh areca nuts are repeatedly heated, roasted and cooled to ensure that the areca nuts are quickly cooled and shrunk after thermal expansion so that the roasted areca nuts have higher quality; the roasting time is around 2-3 days. 3.10 The roasting or mere addition of certain additives for the limited purpose of enhancing preservation or appearance or ease of consumption per se does not result in obtaining a preparation of betel nut. Further, every irreversible process does not result in a preparation of the raw material . Even after these processes the betel nuts retain the character of betel nut and do not qualify to be considered as preparation of betel nut. The goods do ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... goods under consideration are already included in Heading 0802 80 of the Customs Tariff Act, 1975, they stand excluded from the scope of Chapter 21. 3.16 From the above it appears that Roasted Areca Nuts - whole as well as cut - merit classification under Heading 0802 80 of the First Schedule of the Customs Tariff Act, 1975. 3.17 Jurisdictional Customs Commissionerate of Chennai has submitted following comments in response to the application and the same are reproduced verbatim below: 1. The applicant's claim that roasting is not defined in the Customs Tariff Act 1975 is not correct. Though roasting as a process is not defined, it will fall under the 'moderate heat treatment' mentioned in Chapter Note 3 of Chapter 8. 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he applicant has claimed that roasting changes the colour and reduces tannin and arecoline content which is superficial as even boiling will result in similar physical and chemical changes. 2. To be classified under Chapter 20 there should be some preparation as the Chapter heading reads as Preparations of vegetables, fruit, nuts or other parts of plants . Mere roasting of betel nut does not render the product to be distinctive as claimed by the applicant or does not alter the character of the original good. Roasting or mere addition of certain additives for the limited purpose of enhancing preservation or appearance or ease of consumption per se does not result in obtaining a preparation of betel nut. Hence it remains as the betel nut which is rightly classifiable under Chapter 08. 3. According to Cambridge dictionary, Preparation is a mixture of substances, often for use as a medicine . According to Collins Dictionary A preparation is a mixture that has been prepared for use as food, medicine, or a cosmetic. However, in the process flow mentioned in para 2 it is evident that there is neither any mixture of products nor any change in the original good which tantamount ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... son, goods are, prima facie, classifiable under two or more headings, classification shall be effected as follows: a. The heading which provides the most specific description shall be preferred to headings providing a more general description. However, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set put up for retail sale, those headings are to be regarded as equally specific in relation to those goods, even if one of them gives a more complete or precise description of the goods 23. Further as per Rule 3(a) of General Rules for the Interpretation of the Harmonized System since the product is more specifically classified under CTH 08020 classification under Chapter 2106 is unwarranted. When by application of Rule 2 (b) or for any other reason, goods are, prima facie, classifiable under two or more headings, classification shall be effected as follows: b. The heading which provides the most specific description shall be preferred to headings providing a more general description. However, when two or more headings each refer to part only of the materials o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is so in view of the fact that the processes to which raw green fresh betel nuts have been subjected to obtain the said five goods are squarely in the nature of processes mentioned in Note 3 to Chapter 8, and have not materially changed the essential character of betel nuts, further these goods are not classifiable under subheading 21069030. d. Chennai CESTAT order in M/s S.T. Enterprises v/s Commissioner of Customs The Hon'ble Tribunal has addressed the question whether the mere boiling and drying whole betel nut it would merit classification under 21069030 and held that since the import goods are betel nuts whole, these would merit classification under Chapter 8. 26. On perusal of the advance rulings given by the erstwhile AAR, New Delhi, which have been referred to by the applicant, the case of M/s Excellent Betel Nut Products Pvt. Ltd. do cover the four goods, i.e., API supari, Chikni supari, Unflavored supari and Flavored supari. In both these rulings, the erstwhile AAR has concluded that the said products merit classification under sub-heading 21069030. In doing so, the erstwhile AAR has been of the view that on account of the positive language of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for consideration, i.e., API supari, chikni supari, unflavoured supari, flavoured supari, and boiled supari merit classification under chapter 8 of the customs tariff, and more precisely, under the heading 0802 and not under sub-heading 21069030, as contended b. M/s Dry Nut Enterprises (Ruling No. CAAR/Del/Dry Nut/01/2021 dated 16th March, I find that the reference by the Principal Commissioner of Customs to the Note 6 to chapter 21 of the Central Excise Tariff Act, which was essentially intended to deem certain processes as manufacture is inappropriate in the present context. This is particularly so, given the judgement of the Hon'ble Supreme Court of India in the case of M/s. Crane Betel Nut Powder Works and of the CESTAT, Chennai in the case of M/s.Azam Laminators Pvt. Ltd. Put simply, these decisions clearly imply that addition of flavouring agents do not change the character of the good, meaning in the present case betel nut would continue to remain betel nuts and not become preparations of betel nuts 28. From the various advance rulings quoted above, it is more than evident that the applicant's submission of Hon'ble Supreme Court's d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sting changes the chemical and physical characteristics of areca nut reducing arecoline and tannin content as well as colour and moisture. However, CAAR did not order to test the goods and solely relied on the submissions by the applicant which is not backed by any empirical evidence. It is also noteworthy to mention that boiling will also change the chemical and physical characteristics of areca nut by reducing the arecoline and tannin content and even sun drying will also reduce the arecoline and tannin content. f. Point 3 of para 4.2 of the said order states that roasting is not aimed at additional preservation or stabilization. In the absence of test report to ascertain such claim, the issue must be examined after due testing. g. Point 4 of para 4.2 of the said order states about a research article to substantiate the claims of the Importer. However, there was no mention of the name of the author, university or institute where the article is published. h. In para 5.1, M/s. Shahnaz Commodities International has stated to CAAR that the areca nuts are roasted at the temperature of 130-150 degrees Celsius and roasting changes the colour of the areca nut. For that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that roasted betel nut are fit for immediate human consumption without addition of any ingredients on the basis of examination of FSSAI approved samples. However, FSSAI samples are not provided to the Comissionerate and the applicant themselves has accepted in their submissions that there product is also used for masticatory purposes. m. In para 5.6 of the said order, CAAR gives reference of case of Alladi Venkateswarlu v/s Govt of Andhra Pradesh in which the Hon'ble Apex court held that the commonly accepted sense of a term should prevail in constructing the description of an article of food . CAAR also states that drying is moisture removal process involving methods such as dehydration, evaporation, etc. whereas roasting is a severe heat treatment process. The purpose of roasting inter alia is to reduce moisture water content and hence it is also a form of drying. Roasting supplements the preparation and by itself cannot be deemed to a preparation process. n. Further it is observed based on test reports the moisture content even in case of Chapter 08 areca nuts is normally less than 10% but the applicant has claimed that the moisture content is 10-15% for the im ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y revised by CBIC vide notification. It is pertinent to mention that the revision of tariff value is on a continuous upward trend (USD $4937 in Dec 2021 to USD $14026 in February 2023). 29. However, several new applications are being submitted to circumvent the minimum import price ad increasing tariff values by legalizing betel nut import through mis- declaration and mis-classification. The CAAR may not entertain such applications considering that several advance rulings have already rejected the classification of betel nut under chapter 20 and 21 in the interest of the local areca nut industry and to safeguard the interest of the revenue. 4. A personal hearing in this matter was conducted on 25.04.2023 in which advocate Shri. B. Satish Sundar, Shri. N. Balaji and Shri. Faizal Hanif Toply represented the applicant. Joint Commissioner Customs represented one of the jurisdictional Commissionerates. After explaining their CAAR applications during the course of personal hearing they invited attention to previous CAAR ruling in case of M/s Shahnaz Commodities International (P) Ltd., Chennai, HSN explanatory notes, rejoinder submitted in response to comments received from Addition ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the applicant I find that the applicant has described various processes involved in producing of roasted betel nuts. In short, it is stated that the raw betel nut is de-husked and then sun-dried. The dried betel nuts are then fed to roasting ovens where temperature of flames is around 400 to 600 degrees Celsius. The betel nuts are roasted at the temperature of 130-150 degrees Celsius. Subsequently, the roasted betel nuts are cooled mire. This cycle of roasting and cooling is repeated a few times till the desired Quality of the product is obtained. The processes mentioned above cause changes in physical And chemical characteristics. Roasting causes the deposition of an ash-like substance on the Outer surface of the betel nut. It imparts a charred appearance to the betel nut. Roasting also causes a substantial change in chemical composition, especially in respect of tannin and arecoline content. 4.4 During the course of the hearing, the samples of roasted supari were presented by the applicant and same were examined. On visual comparison of roasted supari with normal supari the colours of roasted supari and normal supari were found different. Roasted supari was dark grey in co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r 8 of the first schedule to the Customs Tariff Act, 1975 due to application of Rule 2 (b). Chapter 8 covers fruit, nuts and peel of citrus fruit or melons (including watermelons), generally intended for human consumption (whether as presented or after processing). As per HSN explanatory notes these goods may be fresh (including chilled), frozen (whether or not previously cooked by steaming or boiling in water or containing added sweetening matter) or dried (including dehydrated, evaporated or freeze-dried); provided they are unsuitable for immediate consumption in that state, they may be provisionally preserved (e.g., by sulphur dioxide gas, in brine, in sulphur water or in other preservative solutions). The note specifies the physical status of the goods along with corresponding processes that could be carried on those goods under this chapter. Note 3 to Chapter 8 further states that Dried fruit or dried nuts of this Chapter may be partially rehydrated, or treated for the following purposes: (a) for additional preservation or stabilisation (for example, by moderate heat treatment, sulphuring, the addition of sorbic acid or potassium sorbate); (b) to improve or maintain t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e processes specified in Chapters 7, 8 or 11. Therefore, vegetable, fruit or nut products or preparations made other than by the processes specified in Chapters 7, 8 or 11 are classifiable in Chapter 20. The processes specified in Chapters 7, 8 or 11 mainly include freezing, steaming, boiling, drying, provisionally preserving and milling. Therefore, any vegetable, fruit, nut or edible parts of a plant which is prepared or preserved by any other process than these are liable to be classified under Chapter 20. Heading 2008 covers Fruit, nuts and other edible parts of plants, otherwise prepared or preserved, whether or not containing added sugar or other sweetening matter or spirit, not elsewhere specified or included. Roasting is a process used for bringing into existence roasted nuts and as discussed earlier I find that the processes mentioned in chapter 8 do not cover roasting process. Note 3 to Chapter 8 specifies certain treatments that could be carried out on the dried nuts for additional preservation or stabilization or to improve or maintain their appearance. The applicant in their application has declared that the objectives of the roasting are not as specified in the said ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to Chapter 8 of the Customs Tariff Act, 1975 as well as HSN Explanatory Notes to Chapter heading 0802. From the forgoing it is observed that the impugned goods i.e. roasted betel nuts, find specific reference in the chapter 20 of the schedule I of the Customs Tariff Act 1975 as well as corresponding HSN Explanatory Note. It is important to pay attention to the fact that in the above explanatory note a process of roasting is not specifically mentioned as a process of preservation or stabilization or a process to improve or maintain the appearance. This corroborates the finding that the process of roasting is not covered by Note 3 to Chapter 8 and hence these products, roasted betel nuts are not classifiable under chapter 8 of the Tariff. Hence I do not find merit in the views expressed, reproduced in para 4.1 earlier, by Joint Commissioner Customs representing one of the jurisdictional Commissionerates. 4.10. I find that in two Supreme Court judgments, both under the Central Excise law, the classification of roasted nuts was upheld by the apex court in chapter 20 of the Central Excise Tariff Act, 1985. Interestingly, in both cases it was a case of the Central Excise departmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ise Tariff. Relevant extracts of the judgment are reproduced below: Chapter 20: Preparations of Vegetables, Fruit, Nuts or Other Parts of Plants Chapter Notes: 1. This Chapter does not cover: (a) Vegetables, fruit or nuts, prepared or preserved by the processes specified in Chapter 7, 8 or 11; (b) Food preparations containing more than 20% by weight of sausage, meat, meat offal, blood, fish or crustaceans, molluscs or other aquatic invertebrates, or any combination thereof (Chapter 16); or (c) Homogenised composite food preparations of heading 21.04. 2. Headings 20.07 and 20.08 do not apply to fruit jellies, fruit pastes, sugar-coated almonds or the like in the form of sugar confectionary (heading 17.04) or chocolate confectionery (heading 18.06). 3. Headings 20.01, 20.04 and 20.05 cover, as the case may be, only those products of Chapter 7 or of heading 11.05 or 11.06 (other than flour, meal and powder of the products of Chapter 8) which have been prepared or preserved by processes other than those referred to in Note 1 (a). Tomato juice the dry weight content of which is 7% or more is to be classified in heading 20.02. 5. For the purpose of heading 20.07, the expr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h roasted peanuts would fall under Chapter 20. Para 6 of the judgment reads as under: - Having gone through the records and having examined the process undertaken by the assessee, we are in agreement with the view expressed by the Tribunal ( CEGAT ) regarding classification of roasted peanuts under Heading 20.01. The Tribunal had adopted a correct test when it says that the essential structure of the peanut is not changed by the process of roasting. The assessee merely applies salt to roasted peanuts which does not obliterate the essential character. Moreover, roasting is a process. That process has not been excluded in Note 1 to Chapter 20. Therefore, roasted peanuts are covered by Chapter 20. Even according to the Explanatory notes of HSN under Heading 20.08 ground- nuts, almonds, peanuts etc. which are dry- roasted, fat-roasted whether or not containing vegetable oil are the items which all would stand covered by the said Heading 20.08. 11. The learned Additional Solicitor General has also drawn our attention to paragraph 7 of the said judgment which reads as under: - As stated above, roasted peanut is also a preparation, however, it is a preparation of nuts like alm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l the possible goods that are traded (including animals, human hair etc.) and as such the mention of an item has got nothing to do whether it is manufactured and taxable or not. From the forgoing apex court judgments, it is observed that the roasted nuts find specific mention in the then chapter 20 of the then Central Excise Tariff Act and the chapter 20 of the schedule I of the Customs Tariff Act 1975 as well as corresponding HSN Explanatory Note. It is important to pay attention to the fact that, in the above referred HSN explanatory note, a process of roasting is not specifically mentioned as a process of preservation or stabilization or a process to improve or maintain the appearance. Specific attention is invited to the paras 10 11 of the SC judgment (M/s Phil Corporation) in which paras 6 7 of SC judgment in case of M/s Amrit Agro are relied upon. Honourable apex court's conclusions corroborate the finding that the process of roasting is not covered by Note 3 to Chapter 8 and hence these products, roasted betel nuts are not classifiable under chapter 8 of the Tariff. 4.11 It was perceived that the process of mere roasting of betel nut does not render a new produ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... referred HSN Explanatory Note to chapter 20 a reference to dry-roasted, oil-roasted or fat-roasted indicates the principal processes of preparation that would change the classification of nuts from Chapter 8 to Chapter 20. Further, the goods under consideration are not excluded by any chapter note or explanatory note from CT Heading 2008. Therefore, it is evident that the roasted betel nuts are classifiable under Heading 2008 based on the terms of the Heading 2008 and HSN Explanatory Notes to Chapter 4.12 In regards to remaining competing classification under Chapter 21, it is observed that it includes within its ambit, miscellaneous edible preparations. Supplementary note 2 to Chapter 21 states 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 or menthol. Betel nut product known as Supari . Heading 2106 covers food preparations not elsewhere specified or included. Betel nut product known as supari is mentioned in Subheading 2106 90 30. Those f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mentioned above has to be factored in while deciding classification of betel-nut proposed to be imported by the applicant 4.13.4 I observe that the ratio of M/s Crane Betel nut judgment of the apex court cannot be followed in case of present application (1) due to legislative change in the Central Excise Tariff subsequent to M/s Crane Betelnut Powder Work's judgment, (2) for deciding the classification under chapter 20 as the legal dispute in that case involved a classification of variants of betel nut between chapters 8 and 21, (3) due to availability of commodity specific SC judgments (1) Amrit Agro Industries Ltd. Anr. v. Commissioner of Central Excise, Ghaziabad (2007) 201 ELT 183 (SC), and (2) Commissioner of Customs Central Excise vs Phil Corporation Ltd in Appeal (civil) 2215 of 2002 dated 07/02/2008 on the classification of roasted nuts under chapter 20 of Central Excise Tariff Act. 4.14 I observe that none of the past CAAR rulings including all those referred by the Chennai Customs Commissionerate, prior to M/s Shehnaz Commodities International Pvt Ltd.'s ruling, dealt with the issue of classification of roasted betel nuts. These include CAAR r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , under the heading 0802. This is so in view of the fact that the processes to which raw green fresh betel nuts have been subjected to obtain the said six goods are squarely in the nature of processes mentioned in Note 3 to Chapter 8, and have not materially changed the essential character of betel nuts, as held by the Hon'ble Supreme Court in the M/s Crane Betel Nuts case. Further, the said six goods are not classifiable under sub-heading 2106 9030, as contended by the applicant, since they have not attained the character of preparations of betel nut, which is sine qua non for a good to be so considered. In so far as argument whether goods resulting from a roasting process have attained the character of 'preparation' or not is concerned I find that two different Supreme Court judgments namely (1) Amrit Agro Industries Ltd. Anr. v. Commissioner of Central Excise, Ghaziabad (2007) 201 ELT 183 (SC), and (2) Commissioner of Customs Central Excise vs Phil Corporation Ltd in Appeal (civil) 2215 of 2002 dated 07/02/2008 have held unequivocally that the roasting of nuts is a preparation. In paras 10 and 11 of Supreme Court judgment in case of Commissioner of Custom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case a reference related to 'flavored supari' is not a reference to 'roasted betel nut'. Process of roasting in fire gas rotary roaster is mentioned as one of the processes in preparation of flavoured supari. In this ruling the said six goods are API supari, Chikni supari, boiled supari, boiled cut supari, unflavored supari, and flavored supari. Hence, I find that classification of roasted betel nuts was not at all a subject matter of these decisions. Further, in this ruling the reliance is placed on judgement of the honourable Supreme Court of India in the case of M/s Crane Betel Nut Powder Works. This ruling has not taken into consideration legislative amendment in Central Excise Tariff. Act, 1985 by insertion of clause 113 read with Schedule V of the Finance Act (No.2) of 2009 dated 19th August 2009, amending the Chapter Note of Chapter 21 by including Note 6 in the chapter. I have already stated that the ratio of M/s Crane Betel nut judgment of the apex court cannot be followed in case of present application as discussed in paras 4.13.1 to 4.13.4 above. In CAAR, Delhi's ruling in M/s Vaibhav Enterprises' case honourable CESTAT, Chennai's decisi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... applicable for the classification of roasted betel nut/arecanut. Further Ground nut is classifiable under Chapter 12 which contains Oil seeds and oleaginous fruits: miscellaneous grain seeds and fruit; Industrial or Medicinal plants; Straw and fodder and more specifically chapter heading 1202 contains Ground-nuts not roasted or otherwise cooked, whether or not shelled or broken . From the above chapter heading it is quite clear that only raw peanuts are classifiable under chapter 12 and Chapter heading of 1202 specifically mentions that roasted peanuts are not classifiable under heading 1202. Hence due to this reason, the Hon'ble Supreme Court has ruled in favour of roasted peanuts to be classifiable under heading 2008 Other Roasted nuts . Whereas in the case in hand Chapter Note 3 of Chapter 08 provides a way to classify roasted arecanuts under Chapter 8 by providing a word 'moderate heat treatment' and if an item can be classified under Chapter 08, then there is a no question of classifying the same item under Chapter 20 since Chapter 2008 contains only the items not elsewhere specified or included. (Chapter 28 Fruits, Nuts and other edible parts of plants, othe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rulings have already rejected the classification of betel nut under chapter 20 and 21 in the interest of the local areca nut industry and to safeguard the interest of the revenue. It is important to note that the CAAR ruling is based on the extant legal framework which is assumed to have factored in considerations like protection of local trade and industry as well as revenue interest. No additional bias can be brought in by the CAAR in the prevailing legal framework. 4.17 I have perused a test report issued by ABC Techno Labs India Pvt. Ltd., Chennai dated 31.3.2023 on the samples of roasted areca nut whole split in which the test result indicates the moisture content, a test parameter, of the samples in the range of 3.34% to 3.84%. Moisture content in raw areca nut is found to be generally in the rage on 10-15%. As per applicant this test report indicates that the products were subjected to the roasting process. This aspect of product testing is a part of Customs Compliance Verification (CCV) process on importation of goods. Jurisdictional Customs Commissionerate carry out process of testing of imported goods with the help of concerned government partner agencies (GPAs) to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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