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of <h1>Tribunal classifies 'Nizam Pakku' as 'supari' under Chapter 21069030. Revenue's appeals allowed.</h1> The Tribunal classified the product 'Nizam Pakku' as a 'betel nut product known as supari' under Chapter Sub-Heading 21069030. This decision was based on ... Betel nuts - Scented betel nuts - Classification of goods - Expert opinion Issues Involved:1. Correct classification of 'scented betel nuts' under Central Excise Tariff.2. Applicability of Chapter Note 3 to Chapter 8 and Supplementary Note 2 to Chapter 21.3. Whether the product should be classified under Chapter Sub-Heading 08029019 or 21069030.Detailed Analysis:1. Correct Classification of Scented Betel Nuts:The primary issue revolves around the classification of 'Nizam Pakku,' a product made from dried betel nuts treated with various ingredients. The respondents sought to classify it under Chapter Sub-Heading (CSH) 08029019, which covers 'Betel Nuts, Other,' arguing that the product retained the essential character of betel nuts. The Commissioner of Central Excise (Appeals) supported this classification, noting that Chapter 8 specifically mentions betel nuts, while Chapter 21 is a residuary heading for 'food preparations not elsewhere specified or included.'2. Applicability of Chapter Note 3 to Chapter 8 and Supplementary Note 2 to Chapter 21:Chapter Note 3 to Chapter 8 allows for dried nuts to be treated for preservation or appearance improvement, provided they retain their character as dried nuts. The respondents argued that their product met this criterion. Supplementary Note 2 to Chapter 21 defines 'betel nut product known as supari' as any preparation containing betel nuts but not containing lime, katha, or tobacco. The Revenue contended that the product, being a preparation containing betel nuts and additional ingredients, should be classified under CSH 21069030.3. Classification Under CSH 08029019 vs. 21069030:The Tribunal examined whether the product should be classified under CSH 08029019 or 21069030. The product 'Nizam Pakku' is marketed as 'scented betel nut' and is consumed directly without further processing. The Tribunal noted that the product has a unique taste and is different from raw betel nuts, indicating that it is a preparation rather than a simple dried nut. The Tribunal also considered previous decisions, including the case of M/s. Crane Betel Nut Powder Works, where a similar product was classified under Chapter 21 as a 'betel nut product known as supari.'Conclusion:The Tribunal concluded that the product 'Nizam Pakku' should be classified under CSH 21069030 as a 'betel nut product known as supari.' The decision was based on the product's nature as a preparation containing betel nuts and additional ingredients, its market identity, and the specific definition provided in Supplementary Note 2 to Chapter 21. The appeals by the Revenue were allowed, and the product was classified under Chapter Sub-Heading 21069030.
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