2025 (12) TMI 1401 - AAR - Customs

Tariff classification of roasted cashew nuts under First Schedule: held correctly classifiable under CTI 2008 1910.

The dominant issue was the correct tariff classification of roasted cashew nuts under the First Schedule to the Customs Tariff Act, 1975. Applying the ... Classification of goods - Roasted Cashew nuts - rightly classifiable under CTH 20081910 or not - HELD THAT:- The classification of goods shall be examined, taking into account the relevant provisions of the Section Notes, HSN Explanatory Notes, relevant judgements, comments from the jurisdictional commissionerates and relevant Rules and notifications. It is apparent that the Roasted Cashew Nuts are classifiable under the Customs Tariff Items (CTI) 2008 1910 of the First Schedule of the Customs Tariff Act, 1975. 1. ISSUES PRESENTED AND CONSIDERED (i) Whether 'roasted cashew nuts' are classifiable under Customs Tariff Item 2008 19 10 as 'cashew nut, roasted, salted or roasted and salted'. 2. ISSUE-WISE DETAILED ANALYSIS Issue (i): Classification of roasted cashew nuts under CTI 2008 19 10 Legal framework (as discussed by the Court/Authority): The classification was determined by applying the Customs Tariff structure and the General Rules of Interpretation, particularly the approach that classification is to be decided according to the terms of the headings and relevant Section/Chapter Notes. The Authority also relied on HSN Explanatory Notes as a guide for interpreting Heading 2008. The Authority treated the question as one falling within advance ruling jurisdiction as it related to classification under the Customs law framework. Interpretation and reasoning: The Authority examined the nature of the product as 'roasted' cashew nuts and found that roasting produces a product distinct from raw or merely dried nuts, including changes in moisture level, colour, appearance, and flavour, and that it is understood in the market as 'roasted' cashew nuts. It further reasoned that the processes contemplated for nuts under the chapter dealing with edible fruits and nuts do not cover roasting, whereas Heading 2008 covers fruit/nuts 'otherwise prepared or preserved' and the relevant explanatory material includes nuts that are dry-roasted, oil-roasted, or fat-roasted. The tariff arrangement was treated as decisive because it contains a specific entry for 'cashew nut, roasted, salted or roasted and salted' at CTI 2008 19 10, and classification should follow the specific entry where it exists. Conclusion: 'Roasted cashew nuts' were conclusively held to merit classification under CTI 2008 19 10 of the First Schedule to the Customs Tariff Act, 1975.