TaxTMI 
TaxTMI 
2021 (10) TMI 1397
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....er dated 13.08.2021 to furnish their comments in the matter. However, despite a subsequent reminder dated 13.09.2021, including intimation regarding personal hearing on 22.09.2021, no comments or communication have been received from the concerned Principal Commissioners/Commissioner. The applicant, Shri Vaibhav Uppal proprietor attended the personal hearing on the said date. In his submission, Shri Uppal described the products in question, referred to the earlier rulings of the erstwhile AAR and claimed that import of these products was being allowed under Chapter 21 at some Customs formations in respect of atleast few importers. The Authority explained the legal framework of advance rulings including scope of Section 28J of the Customs Act, and cited reference to his own rulings on the same question of classification of betel nut products, wherein it has been ruled that the same are classifiable under Chapter 8, even as the preferability of consistency in classification was recognized. 3. The applicant, vide the aforesaid application, has sought ruling by CAAR, New Delhi on the question of classification of six items, the details of which are summarized as under: (i) API Supar....
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.... Betel Nut, which falls under Chapter 8, specifically heading 0802 90 00; it undergoes material changes after processing addition/mixing of ingredients and become edible preparations approximately classifiable under heading 2106 90 30. The applicant has also referred to the Supplementary Note 2 of Chapter 21 (Miscellaneous edible preparations) 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." Thus, according to the applicant, the final products to be imported being processed betel nut product, not containing lime, katha or tobacco, by virtue of aforesaid chapter note are specifically classifiable under Chapter 21. 5. After mentioning above details and processes involved in making of various types of Supari, the question on which advance ruling has been sought is, "The goods sought to be imported namely 'API Unflavored Su....
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....her or not containing any other ingredients such as cardamom, copra or menthol." They have also placed significant reliance on the above cited ruling of the erstwhile AAR, New Delhi in the case of M/s Excellent Betelnut Products Pvt. Ltd, M/s Oliya Steel Private Limited, Kolkata and M/s Isha Exim. I will revert to these rulings, as also rulings of CAAR, Mumbai and my own rulings on the same question of classification later in this ruling. 9. On the basis of the submissions of the applicant, along with the cited reference to the ruling of the erstwhile AAR, there are two contending entries in the CTH for the aforesaid six goods, viz. sub-heading 2106 90 30 and sub-heading 0802 80 90. Therefore, would be useful to carefully Consider the two competing tariff entries and the guidance relating thereto. 9.1 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 s....
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....wever, while doing so, the erstwhile AAR did not make any comment on the implications of the Chapter Note 3 to Chapter 8 on the processes l raw betel nuts were subjected to obtain the said four goods. Further, AAR was or the opinion that the decision of the Hon'ble Supreme Court in the case of M/s. Crane Betel Nut powder works reported at 2007 (210) E.L.T. 171 (S.C.)) has no application in the facts of the cases before them. It is my considered opinion that in order to arrive at the appropriate classification of the said four goods, all originating from common source viz. raw green fresh betel nut, a more comprehensive view needs to be taken than in the aforesaid M/s Excellent Betelnut case, as has been done by AAR, Mumbai in the case of M/s. Samreen International Pvt. Ltd. (Ruling No. CAAR/Mum/ARCI3/202I dated 15th of March, 2021) and this Authority in the case of M/s Dry Nut Enterprises (Ruling No. CAAR/Del/Dry Nut/01/2021 dated 16th March, 2021). 12. In view of the above, I now summarize the contending positions on the question posed for advance ruling. Advance ruling has been sought on classification of six different goods, each known as "supari" in common trade parlance, ....
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....ird set for enhancing appearance or presentation, in addition to cutting. Addition of starch would be included under such process. I find that these processes are clearly covered by the Chapter Note to Chapter 8 as well as the HSN, I find that in the instant case, betel nuts atter being boiled are dried and this fact per se would not exclude the end-products from the scope of "dried nuts". Further, it is equally obvious to me that boiling or mere addition of certain additives for the limited purpose of enhancing preservation or appearance or ease of consumption per se does not result in obtaining a preparation of betel nut. Speaking more Benerally, in view of the design of the Schedule to the CTA, HSN and plethora ofjudgements, besides common understanding and parlance, every irreversible process does not result in obtaining a new product with a distinct classification even at the eight or ten-digit level; and every irreversible process does not result in coming into being of a "preparation of the raw material". Therefore, I conclude that the processes to which raw betel nuts have been subjected to obtain API supari, Chikni supari, unflavored supari, boiled supari and boiled & cut ....