TaxTMI 
TaxTMI 
2021 (7) TMI 1334
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....ms Authority for Advance Rulings, New Delhi (CAAR, New Delhi, in short). 2. On scrutiny of the application, Secretariat of CAAR, New Delhi issued Deficiency Memo and requested the applicant to rectify the said deficiencies. The applicant submitted rectified application vide letter dated 19-4-2021, which was received in the Secretariat of CAAR, New Delhi on 19-4-2021. The application was accordingly registered under Serial No. 10/2021-Delhi, dated 19-4-2021. 3. As per the application, the applicant intends to import preparation/product of Betel Nuts (Areca Nuts), commonly known as "SUPARI". The nomenclature of goods intended for import is Boiled Supari, which is made after various processes are conducted on raw green fresh wh....
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....ghlakabad, New Delhi has been received, vide letter dated 21-6-2021. However, comments of other concerned Principal Commissioners/Commissioners of Customs have not been received in respect of this specific application, even as the comments of Principal Commissioner of Customs on the relevant subject are available with this office in certain other applications. Principal Commissioner of Customs (Import), ICD, Tughlakabad has submitted that in the light of Chapter Note 3 of Chapter 8 as long the goods retain the character of dried nut, they remain classified under CTH 0802. It is further stated that the preparations of betel nuts fall under Chapter 21 and the whole nut even if split or ground does not fall under this chapter and are classifia....
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....s explained the processes involved in making the product, as stated in para 3 above. The applicant has contended that the goods fall under CTH 2106 and particularly sub-heading 2106 90 30 and referred to the Supplementary Note 2 of Chapter 21 to justify that 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 preparation containing 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 or menthol.". The applicant has also stated that vide Union Budget for the year 2009-10, an amendment was made....
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....lly consider the two competing tariff entries and the guidance relating thereto. 8. 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 dr....
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.... to by the applicant, I find that the erstwhile AAR has indeed concluded that various goods, including Boiled Supari, merit classification under sub-heading 2106 90 30. I find that in reaching this conclusion, AAR has been of the view that on account of the positive language of the Supplementary Note 2 to Chapter 21, it is not necessary for betel nut (supari) to undergo a change of character for it to be classified under Chapter 21. However, on the issue of classification of Boiled Supari, CESTAT, Chennai has passed an order dated 26-2-2021 in the case of M/s S.T. Enterprises v. Commissioner of Customs (Chennai VII) [2021 (378) E.L.T. 514 (Tri. - Chen.)]. In the said order, CESTAT, Chennai while, dealing with the issue of classification of ....
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....ble and inappropriate to approach the issue of classification of the said goods solely with the prism of the positive nature of Supplementary Note 2 to Chapter 21, as it seems to have been done in the order of the erstwhile AAR. 14. To answer the question posed for advance ruling, I find that the processes involved in making Boiled Supari are clearly covered by the Chapter Note 3 to Chapter 8. I also find that in the instant case, betel nuts after being boiled are dried; and this fact per se would not exclude the end-products from the scope of "dried nuts". Therefore, I conclude that the processes to which raw betel nuts have been subjected to obtain Boiled Supari is squarely in the nature of processes referred to in the Chapter Not....