Betel nut classification stays under Chapter 8 where processing and flavouring do not change the goods' essential character.

Processed supari products retained classification as betel nut under Heading 0802 of Chapter 8 because the applied boiling, drying, polishing, slicing, sterilising and roasting were treated as permissible preservation or stabilisation processes under Chapter Note 3, and the goods retained the character of dried nuts. The addition of starch to API supari, chikni supari and unflavoured supari did not alter their essential character. Flavouring added to flavoured supari likewise did not convert the goods into preparations of betel nut under Chapter 21, as Supplementary Note 2 applies only where the product has the relevant preparation character.

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Issues: Whether processed betel nut products known as API supari, chikni supari, unflavoured supari and flavoured supari are classifiable under sub-heading 2106 90 30 as preparations of betel nut, or under Heading 0802 of Chapter 8 as betel nut.

Analysis: The classification turned on whether the processes of boiling, drying, polishing, slicing, sterilising, roasting and adding starch or flavouring agents took the goods out of Chapter 8. Chapter Note 3 to Chapter 8 permits dried nuts to be partially rehydrated or treated for preservation, stabilisation and appearance, provided they retain the character of dried nuts. Supplementary Note 2 to Chapter 21 covers only preparations containing betel nut and not containing lime, katha or tobacco. The processes applied to API supari, chikni supari and unflavoured supari were found to be within the scope of Chapter 8 note 3, including boiling as akin to moderate heat treatment, and the addition of starch did not alter the essential character of the goods. As to flavoured supari, the addition of flavouring agents was held not to change the character of the betel nut, especially in light of the relevant precedent on areca nut products. Therefore, the goods remained betel nut products and did not become preparations of betel nut under Chapter 21.

Conclusion: The question was answered against the applicant and the goods were held classifiable under Heading 0802 of Chapter 8, not under sub-heading 2106 90 30.

Final Conclusion: Processed supari products that retain the essential character of betel nut after permissible cleaning, preservation and flavouring processes remain classifiable as betel nut under Chapter 8.

Ratio Decidendi: Where the applied processes and additives do not change the essential character of betel nut, and the treatment falls within the scope of Chapter 8 note 3, the goods do not become preparations of betel nut under Chapter 21.

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