TaxTMI 
TaxTMI 
2021 (8) TMI 919
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....application was transferred to CAAR, New Delhi in terms of section 28-F (3) ibid and regulation 31 of CAAR Regulations, 2021. 3. On perusal thereof, in view of the time limit of three months for pronouncing its advance rulings from the date of receipt of this application prescribed under section 28-I (6) ibid, it was held that the Iaforesaid application, received in the O/o AAR, New Delhi on 30.09.2020 had become time barred for this Authority. 4. However, on constructive interpretation of the powers vested with this Authority, vide letter dated 18.02.2021, the applicant was advised to intimate whether they continue to be interested in obtaining ruling of this Authority, and if so either resubmit their application in the Form CAAR-I appended to Customs Authority for Advance Rulings Regulations, 2021, or simply affirm that the declarations made in the earlier application remain valid and unchanged at the earliest to this Authority. It was also informed that the date of receipt of such resubmitted application or affirmation, as the case may be, shall be taken as the date of receipt of their application under regulation 8(4); and no separate payment of th....
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....imed that they are rightly classifiable under Chapter 21. Concluding his arguments, he reiterated that it is settled position that issues once decided must be followed in the subsequent similar matters. However, Shri Kumar was informed that present law with regard to advance rulings requires that every matter be taken up afresh. 7.2 On being queried about the averment of Commissioner of Customs, Ludhiana regarding the applicant self-classifying the said goods described as areca nuts/ betel nuts under CTH 08028090 in two bills of entry filed on 19.09.2020 and 22.10.2020, Shri Kumar accepted the fact of such declaration, but contended that they are of the opinion that the goods are rightly classifiable under Chapter 21. 7.3 Further, on being queried about the intention behind the second question relating to principles of valuation based on transaction value, Shri Kumar stated that it was essentially related to the question of classification, with tariff values being prescribed for betel nuts falling under chapter 8. 8. I, having found that the application is valid in terms of the provisions of the Customs Act and the CAAR Regulations, 2021, having received the comments....
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.... nuts are subjected to blowing of weightless particulars by blower machine and gravity separation by automatic gravity separation machine and roasting in fire gas rotary roaster or oven to minimize moisture content for longevity of product. Thereafter the so cut betel nuts are flavoured in automatic blending machines with flavouring compounds of different variety such as spices, menthol, copra, cardamom and/or mulethi etc. in liquid format. After blending with flavours the processed betel nuts are ready to pack. I therefore, note that the process of making 'Flavoured Supari ' involve all the processes involved in making 'Unflavoured Supari ' plus flavouring of the cut betel nuts are flavoured in automatic blending machines with flavouring compounds of different variety such as spices, menthol, copra, cardamom and/or mulethi etc. in liquid format. 10. The applicant has contended that all the four goods are preparations of betel nut and in terms of the Supplementary Note 2 of Chapter 21, these products are classifiable under the Sub- heading 2106 90 30. As per the said Supplementary Note 2: "In this chapter "Betel Nut product known as Supari" means any pre....
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....tioned in Supplementary Note 4 to Chapter 21 and as such are not classifiable under Chapter 21. Even if the goods are boiled; as per Note 3 to Chapter 8, the goods proposed to be imported by the importer remained classifiable under CTH 080280. The applicant has referred Ruling No. AAR/CUS/08/2015 in Application No. AAR/44/CUS/21/2014 issued by the Authority for Advance Rulings. The said Rulings held that the impugned products fall in CTH 2106. However, this judgment has been reversed in the case of A.R.S. Company Ltd. Vs Commissioner of Central Excise, Trichy reported as 2015 (324) E.L.T. 30 (SC) stating that "the issue squarely covered under judgment of Apex Court in the case of Crane Betel Nut Powder Works Vs CCE, Tirupati [2007 (210) ELT 171] wherein it was held that crushing betel nuts into smaller pieces and sweetening the same with essential/non-essential oils, menthols, sweetening agents, etc. did not result in manufacture of a new and distinct product, Tribunal's order classifying said product under heading 2106 of Central Excise Tariff, set aside. The Hon'ble Supreme Court in the above said judgment relied on the judgment of Apex Court in Crane Betel Nut powder Wor....
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.... betel nuts, but not containing any one or more of the following ingredients, namely: lime, katha (catechu) and tobacco whether or not containing any other ingredients, such as cardamom, copra, menthol. ' 12.4 In this Chapter, the related entry, with respect to betel nuts, is the sub-heading 21069030, i.e., betel nut products known as supari. 13. Further, since the question relates to classification of goods proposed to be imported, guidance of the Harmonized Commodity Description and Coding System of the World Customs Organization, to which India is a signatory, would be useful. It is seen that with respect to Chapter 8, the HSN prescribes the following as general guidelines: - 'Fruit and nuts of this Chapter may be whole, sliced, chopped, shredded, stoned, pulped, grated, peeled or shelled. The addition of small quantities of sugar does not affect the classification of fruit in this Chapter. ' 14. Further, on perusal of the advance rulings given by the erstwhile AAR, New Delhi, which have been referred to by the applicant, I find that case of M/S Excellent Betelnut Products Pvt. Ltd. does cover the four goods involved in the present proceedi....
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....lead to the said four goods be considered as "preparation of betel nut" that would make them classifiable under Chapter 21 by virtue of Supplementary note 2 of Chapter 21. Alternatively, whether the processes carried out on the same for cleaning, preserving and making them more attractive to certain tastes/ preferences are too minor to fall short of rendering them as preparations of betel nuts. 17. Before I proceed to answer the question on which advance ruling has been sought, I wish to clarify that on careful consideration of the legal construct and specific provisions of section 28-J (1) of the Customs Act, 1962, I am of the view that the task before me as the Customs Authority for Advance Rulings cannot be to pass rulings on questions of classification of goods simply based on the previous ruling of AAR, even as I readily acknowledge the persuasive value of the same. Therefore, in arriving at my ruling, I refer to the judgments relied upon by the applicant, concerned Commissioner of Customs, and more recent ruling of the Customs Authority for Advance Rulings, Mumbai in No. CAAR/Mum/ARC/1/2021 dated 15.03.2021 relating to M/s Samreen International Pvt. Ltd, Chennai. 18. To....