2021 (3) TMI 1328

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.... Regulations, 2021. The aforesaid application is accordingly taken up for pronouncing ruling within three months of the receipt of the application. 3. The applicant was given an opportunity of hearing on 15-3-2021, wherein, they were, inter alia, advised to submit arguments as to why a consolidated ruling has been sought for tour goods in one application filed under Section 28H ibid. During the Personal Hearing held on 15-3-2021. Shri Harish Kohli, Advocate submitted that it was on account of the fact that all the four goods originated from the same raw material, viz. betel nut. In view of the fact that this consolidated application was filed before the AAR, related precedence and administrative convenience, the application seeking ruling on classification of four goods is being taken up together for decision. His submissions in support of claim that the said four goods are correctly classifiable under Chapter 21 are discussed later in this order. 4. The question on which advance ruling sought is framed as following : "whether the goods sought to be imported i.e. processed betel nut as described above [viz. 'API supari', 'Chikni supari', 'Unflavoured supari'; and 'Fla....

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....omatic blenders with compound. 8. It is seen that there are two contending classification for the said four goods, i.e. Chapter 8, more specifically CTH 0802 90 00; and Chapter 21, more specifically CTH 2106 90 30. In the aforementioned backdrop, it is necessary to examine the contending chapters/CTH of the customs tariff. 9. Chapter 8, which covers Edible fruit and nuts; peel of citrus fruit or melons includes, inter alia, the following Note 3 :- '3. Dried fruits or dried nuts of this Chapter may be partially rehydrated, or treated for the following purposes : (a)  For additional preservation or stabilization (for example, by moderate heat treatment, sulphuring, the addition of sorbic acid or potassium sorbate); (b)  To improve or maintain their appearance (for example, by the addition of vegetable oil or small quantities of glucose syrup) : Provided that they retain the character of dried fruit or dried nuts.' 9.1 In the Chapter 8, areca nuts, whole, split, ground and two residuary sub-headings are accommodated under 0802 80 10, 20, 30, 90 and 0802 90 00, respectively. 10. On the other hand, Chapter 21 covers miscellaneous edibl....

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....ty for Advance Rulings, Mumbai in his Ruling No. CAAR/Mum/ARC/1/2021, dated 15-3-2021 in the case relating to M/s. Samreen International Pvt. Ltd., Chennai [2021 (378) E.L.T. 680 (A.A.R. - Cus. - Mum.)], as extracted below : 13.1 'M/s. Crane Betel Nut Powder Works, as per the Hon'ble Supreme Court of India [2007 (210) E.L.T. 171 (S.C.)], were engaged in the business of marketing betel nuts in different sizes after processing them by adding essential/non-essential oils, menthol, sweetening agent etc., and were clearing the goods under Heading 2107 of the Central Excise Tariff and were paying duty accordingly. Subsequently, they filed a revised classification declaration under Rule 173B of the Central Excise Rules, 1944, with effect from 17th July, 1997, claiming classification of its product under sub-heading 0801 00 of the Central Excise Tariff. It was contended that the crushing of betel nuts into smaller pieces with the help of machines and passing them through different sizes of sieves to obtain goods of different sizes/grades and sweetening the cut pieces did not amount to manufacture in view of the fact that mere crushing of betel nuts into smaller pieces did not bring i....

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....quantities of sugar does not affect the classification of fruit in this Chapter.' 15. In this regard the concerned Principal Commissioner of Customs is of the opinion that only the preparations containing betel nuts fall under Chapter 21 and the whole nut even if split or ground does not fall under this chapter and are classifiable under CTH 0802. He has drawn attention to Note 6 to Chapter 21 of Central Excise Tariff, as reproduced below to propose that flavoured supari which contains flavouring materials like spices/or mulethi is classifiable under CTH 2106 : "6. In relation to product of tariff item 2106 90 30, the process of adding or mixing cardamom, copra, menthol, spices, sweetening agents or any such ingredients other than lime, katha (catechu) or tobacco to betel nut, in any form shall amount to manufacture." 16. During the personal hearing, Shri Harish Kohli, Advocate explained the process of preparation of supari items being imported by his client, starting with the green nut. He explained the process involving cleaning etc., then boiling upto 300 degree, and thereafter, addition of starch and spices etc. (in the case of flavoured supari). He laid grea....