Betel nut classification turns on essential character, with processed supari remaining under Chapter 8 rather than as a preparation.

Goods derived from raw betel nut remain classifiable under Chapter 8 where the processes applied-cleaning, boiling, drying, polishing, cutting, roasting, stabilization and limited addition of starch or flavouring-do not materially alter their essential character. Chapter Note 3 to Chapter 8 permits such preservation or treatment of dried nuts, and boiling alone does not convert the product into a preparation of betel nut. The Supplementary Note to Chapter 21 applies only where the product answers the description of supari as a true preparation. On the stated facts, the goods fall under heading 0802 and not under sub-heading 21069030.

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Issues: Whether the goods known as API supari, Chikni supari, unflavoured supari, flavoured supari and boiled supari are classifiable under Chapter 21 as preparations of betel nut known as supari, or under Chapter 8 as betel nuts.

Analysis: Chapter 8 of the Customs Tariff covers edible nuts, and Chapter Note 3 permits dried nuts to be partially rehydrated or treated for preservation, stabilization, or improvement of appearance, provided they retain the character of dried nuts. The Supplementary Note to Chapter 21 applies only to preparations containing betel nuts that answer the description of supari. The goods in question are derived from raw betel nuts and, on the facts described, undergo processes such as cleaning, boiling, drying, polishing, cutting, roasting, stabilization, and addition of limited ingredients like starch or flavouring agents. These processes were found to fall within the processes contemplated by Chapter Note 3 to Chapter 8 and the HSN guidance, and they do not materially alter the essential character of betel nuts. Boiling was held not by itself to convert the product into a preparation of betel nut. Addition of flavouring agents also does not change the classification where the product remains betel nut in substance.

Conclusion: The goods remain classifiable under Chapter 8, more specifically under heading 0802, and are not classifiable under sub-heading 21069030 of Chapter 21.

Ratio Decidendi: Processes of cleaning, preservation, stabilization, rehydration, boiling, drying, cutting, polishing, and similar treatment do not shift betel nut out of Chapter 8 unless the product loses its essential character and becomes a true preparation of betel nut.

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