TaxTMI 
TaxTMI 
2015 (12) TMI 481
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....e imported is processed betel nut as described therein above whether or not containing ingredients such as food starch, spices, mulethi, flavors, perfume etc., though not containing lime or katha (catechu) or tobacco, and will the resultant products be classifiable under the Chapter/Heading 21069030?" 2. The applicant who is in the betel nut business claims that he is currently engaged in the import and trading of dry fruits, spices, nuts, organic foods etc. The applicant thereafter maintains that he intends to import various types of betel nuts and wishes to market the same. The applicant proposes to import (i) API supari, (ii) Chikni supari, (iii) Unflavored supari; and (iv) Flavored supari. The applicant accepts that the principal raw....
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.... 3 stage cutting blowing of weightless particles in blower, Gravity separation by Automatic Gravity Separation Machine, Roasting in Fire Gas Rotary Roaster, Flavoring in large size Automatic blenders with compound, Metal Deflection by Magnetic Metal Deflectors, Sterilizing to kill bacteria count increased due to handling in processing and packaging. Then Flavors such as flavoring materials like Spices/or Mulethi etc., are mixed in Automatic Blenders with outsourced Liquid flavors such as perfumes etc. in Mega size Automatic blenders with compound. 3. It is the case of the applicant that all the four products which he intends to import can only amount to a preparation. 4. As against this, according to the Revenue, the aforementioned 4 ....
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....products would be essentially known as supari. But as the learned counsel points out the original betel nut undergoes changes and is mixed with some other items like food starch, Mulethi, Copra etc. In our opinion, therefore, the products which the applicant intends to import prima facie fits in Chapter 21 Supplementary Note No. 2 which we have quoted above. 8. However, Shri Jain, the Departmental Representative very vehemently contended that firstly supari which is betel nut should be covered under Chapter 8. His further argument is that in order to fit in Chapter 21, supari which is also known as betel nut should undergo a different character change meaning it should not remain a supari. The contention is incorrect, if we go by the pos....
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.... result in the manufacture of a new product as the end product continues to retain its original character though in a modified form. 31. In our view, the Commissioner of Customs and Central Excise (Appeals) has correctly analyzed the factual as well as the legal situation in arriving at the conclusion that the process of cutting betel nuts into small pieces and addition of essential/non-essential oils, menthol, sweetening agent etc. did not result in a new and distinct product having a different character and use." 10. In our view, the contention of Shri Jain as well as the reliance on this decision of the Hon'ble Supreme Court is completely uncalled for. In the first place, the aforementioned decision was in relation to the Cen....