TaxTMI 
TaxTMI 
2021 (7) TMI 1334
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....elhi (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 whole or split (half) betel nuts and the proc....
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....ipal 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 classifiable under CTH 0802. Since the betel nut which has undergone the processes wherein it does not lose its original....
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....at 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 in the Central Excise Tariff whereby betel nut product known as 'Supari' of Tariff Item 2106 90 30 was excluded fr....
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....ble 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. In the Chapter 8, areca nuts, whole, split, ground, and two residuary sub-headings are accommodated under 0802 8....
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....at 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 Boiled Supari held that "since the import goods are 'betel nuts whole', these would merit classification under Chapter 8 and specifically under Chapter 0802 80 10 ..". I take not....