TaxTMI 
TaxTMI 
2025 (12) TMI 1076
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....ring registration no. 33DXEPP7137P2ZT. The applicant is intending to import of following goods from the Chennai Port: a) Oven Roasted Cashew nuts from Vietnam, Thailand and Malaysia. b) Oven Roasted Areca nuts from Burma, Thailand, Indonesia and Srilanka. c) Oven Roasted Walnuts from USA, Thailand and China. d) Oven Roasted Pista nuts from Thailand, Iran and USA. 2.2 The applicant is of the bonafide belief that the subject goods are rightly classifiable under CTH sub heading 2008 19. Therefore, the present application is being filed to ascertain the correct classification and eligibility of Notification benefit for the following subject goods: S1. No. Subject Goods Proposed CTH Classification Proposed Eligibility of Notification Benefit 1. Roasted Cashew Nut 20081910 (1) SI. No. 172 of Notification No. 46/2011-Cus dated 01.06.2011 2. Roasted Areca Nut 20081920 (1) Sl. No. 172 of Notification No. 46/2011-Cus dated 01.06.2011 and (2) List 5 of Notification No.26/2000-Cus dated 01.03.2000 ( when imported from Sri Lanka) 3. Roasted Walnut 20081920 (1) SI. No. 172 of Notification No. 46/2011-Cus dated....
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....e, the classification of subject goods under the Chapter 08 is not suitable for the product which is roasted. F. Further, the classification of subject goods under CTH 2008 19 10 can be supported by Rule 3(a) of the General Rules of Interpretation which provides that when one classification provides a general description and another provides a more complete or precise description of the goods, then the classification which provides the precise description must be taken. In this case, the specific heading for roasted cashew nuts is 2008 19 10, which provides a more precise description than a general heading for nuts under Chapter 08. G. It is submitted that the HSN Explanatory Notes to Chapter 20.08 published by the World Customs Organization are reproduced below: "this heading covers fruits, nuts and other edible parts of plants, whether whole, in pieces or crushed, including mixtures thereof, prepared or preserved otherwise than by any of the process specified in other Chapters or in the preceding headings of this Chapter. It includes, inter alia: (1) Almonds, ground-nuts, areca (or betel) nuts and other nuts, dry-roasted, oil-roasted or fat-roaste....
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.... that nature and composition can always be tested after the goods land in India. The process carried out on the goods is explained above and it is submitted that these details are sufficient for this Hon'ble Authority to arrive at a conclusion regarding the classification of the product. K. As per the applicant, the roasted Areca Nuts are specifically covered and are classifiable under CTH 2008 19 20 of the Customs Tariff Act, 1975. As per the HSN Explanatory Notes to Heading 2008, Dry Roasted Areca (or Betel) Nuts are specifically covered under Chapter Heading 2008. Reference is made to the case laws of L.M.L. Ltd. v. Commissioner of Customs reported in 2010 (258) E.L.T 321 (S.C), Holostick India Ltd. v. Commissioner of Central Excise, Noida reported in 2015 (318) E.L.T 529, Collector of Central Excise, Shillong v. Wood Craft Products Ltd reported in 1995 (77) E.L.T 23 (S.C.) to submit that the HSN Explanatory Note is the safe and dependable guide in the matters of classification of items. In the case of Collector of Customs, Bombay v. Business Forms Ltd reported 2002 (142) ELT 18 (S.C.), the Hon'ble court held that Explanatory Notes to HSN need to be given due consider....
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....s. Therefore, the goods seem equally classifiable under Chapter 21 of the Customs Tariff Act, 1975. It is made clear that Supari and roasted areca nuts differ significantly in their processing and classification. Supari in general involves extensive processing, such as boiling, drying and mixing with various additives like sweeteners, spices and sometimes even silver coating, making it a complex product specifically classified under Chapter 21 of the Customs Tariff as a miscellaneous edible preparation. In contrast, roasted areca nuts are simply preserved by roasting, without any additional ingredients or complex processing, which aligns then with Chapter 2008, specifically covering nuts that are otherwise prepared or preserved. Thus, while supari is a more elaborately processed product, roasted areca nuts are simply roasted and preserved, leading to their distinct classification. Further, Chapter 2008 explicitly includes nuts that are roasted, making it the appropriate and specific classification for roasted areca nuts. N. Further, Chapter 8 covers fruit, nuts and peel of citrus fruit or melons (including watermelons), generally intended for human consumption (whether as presen....
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....undamental chemical and physical changes in the structure and composition of the goods, bringing about a charred physical appearance. Therefore, drying is a moisture removal process involving methods such as dehydration, evaporation, etc., whereas roasting is a severe heat treatment process. Q. The following CTH can be found to be specifically mentioned in the Tariff :- 2008 Fruit, nuts and other edible parts of plants, otherwise prepared or preserved, whether or not containing added sugar or other sweetening matter or spirit, not elsewhere specified or included, -Nuts, ground-nuts and other seeds, whether or not mixed together, 2008 19 -- Other, including mixtures: 2008 19 20 --- Other roasted nuts and seeds. While examining the scope of CTH 2008 it is found that as per HSN Explanatory Notes, heading 2008 covers fruit, nuts and other edible parts of plants, whether whole, in pieces or crushed, including mixtures thereof, prepared or preserved otherwise than by any of the processes specified in other Chapters or in the preceding headings of this Chapter. Specifying what is included in this heading, the explanatory note states that Almonds, ....
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....CAAR, Mumbai, vide Ruling Nos. CAAR/MUM/ARC/44, 45 & 46/2022 dated 07.12.2022 which has also been upheld by the Hon'ble High Court of Madras as reported in 2023 (386) E.L.T. 214 (Mad.), vide Ruling Nos. CAAR/Mum/ARC/39,40,41/2023 dated 12.05.2023 vide and Ruling No. CAAR/MUM/ARC/67/2022 dated 16.10.2023 had held that the product is classifiable under CTH 2008 19 20. The said ruling is applicable to the present case also, as the Roasted Areca Nuts are same as the product that was under consideration before the Hon'ble Authority in the above-mentioned Rulings. U. It is submitted that the Division Bench of the Hon'ble High Court of Madras in the case of Commissioner of Customs, Chennai-II vs. Shahnaz Commodities International Pvt. Ltd. reported in (2023) 9 Centax 183 (Mad.) addressed the issue of classification of areca nuts and in detail the relevance of HSN Explanatory Notes and Common Parlance Test. The Hon'ble High Court compared the relevance of Common Parlance Test and Specific Tariff Entry to CTH 08, 20 and 21 and observed that CTH 2008 19 20 covers roasted nuts including areca nut in a specific entry when contrasted with the items covering nuts under CTH 08.....
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....igns with the heading 2008, which covers fruit, nuts, and other edible parts of plants that have been prepared or preserved, whether or not containing added sugar or sweetening matter or spirit, and are not specified elsewhere. Additionally, the classification under CTH 2008 19 20 is appropriate because other roasted nuts are specifically covered under this subheading. Y. It is submitted that Chapter 08 of the Custom Tariff also deals with the Edible fruit and nuts which are "fresh" or "dried" in general. It is submitted that the products subjected to import are "roasted" which are clearly not fresh or dried. Therefore, the classification of subject goods under the Chapter 08 is not suitable for the product which is roasted. Z. Further, the classification of subject goods under CTH 2008 19 20 can be supported by Rule 3(a) of the General Rules of Interpretation which provides that when one classification provides a general description and another provides a more complete or precise description of the goods, then the classification which provides the precise description must be taken. In this case, the specific heading for other roasted nuts is 2008 19 20, which provides a more....
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....06.2011. AE. It is submitted that the preparation process being preheating, lining the baking sheet, and roasting transforms the raw pista into a form that fits the description of "otherwise prepared or preserved nuts. This classification aligns with the heading 2008, which covers fruit, nuts, and other edible parts of plants that have been prepared or preserved, whether or not containing added sugar or sweetening matter or spirit, and are not specified elsewhere. Additionally, the classification under CTH 2008 19 20 is appropriate because other roasted nuts are specifically covered under this subheading. AF. It is submitted that Chapter 08 of the Custom Tariff also deals with the Edible fruit and nuts which are "fresh" or "dried" in general. It is submitted that the products subjected to import are "roasted which are clearly not fresh or dried. Therefore, the classification of subject goods under the Chapter 08 is not suitable for the product which is roasted. AG. Further, the classification of subject goods under CTH 2008 19 20 can be supported by General Rules of Interpretation Rule 3(a) of the which provides that when one classification provides a general description a....
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....d. d) Roasted Pista nuts is classifiable under CTH 2008 19 20 and eligibility of the SI. No. 172 of Notification No. 46/2011-Cus dated 01.06.2011 for import of roasted pista nuts when imported from Thailand. 3. In terms of provisions of the Section 28-I (1) of the Customs Act, 1962 read with Sub- Regulation no. (7) of the Regulation no. 8 of the Customs Authority for Advance Rulings Regulations, 2021, on the receipt of the said application, office of the CAAR, Mumbai forwarded copy of the said application/submissions to the concerned Jurisdictional Customs Commissionerate i.e. The Commissioner of Customs (Import), Chennai calling upon them to furnish the relevant records with comments, if any, in respect of said application. However, no reply has been received from Jurisdictional Commissionerate till date. 4. Records of Personal Hearing: The personal hearing in the matter was scheduled on 12.06.25, 18.06.25 and 23.06.2025. However, nobody appeared from the applicant side on either of these dates. Further opportunity of Personal Hearing was granted on 12.09.2025. M/s Shweta R.S. appeared for Personal Hearing in this matter. She reiterated the contention filed with ....
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....s. Wood Craft Products Ltd., (1995) 77 ELT 23 (S.C.) the Hon'ble Supreme Court of India held that in case of doubt, HSN is a safe guide for ascertaining true meaning of any expression used in the Act, unless there is an express different intention indicated in the Customs Tariff itself. The same view has been taken by the Hon'ble Supreme Court in the case of CC v. Business Forms Ltd., 2002 (142) E.L.T. 18 (S.C.) 6.4 Therefore, to further interpret the relevant Headings, Sub-Headings and Section Notes under the First Schedule of the Customs Tariff, reliance can also be placed on the Explanatory Notes to the HSN. 7. As far as the classification sought for Oven Roasted Arecanuts is concerned, the applicant has submitted that the processes carried out to obtain roasted arecanuts which involves de-husking the raw betal/areca nuts and drying the same before being fed into the roasting oven and heating up to 100 deg. C, cooling at room temperature and feeding back into the oven, heat and roast them again, and perform this cycle until the water content of the fresh areca nuts is 10 to 15 per cent. 7.1 It is evident from the processes specified in Chapters 7, 8 or 11 which ....
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....ted 31-3-2023 on the samples of roasted areca nut whole & split in which the test result indicates the moisture content, a test parameter, of the samples in the range of 3.34% to 3.84%. Moisture content in raw areca nut is found to be generally in the rage on 10-15%." Further, the hon'ble High Court of Madras in the case of M/s Universal Impex Vs. The commissioner of Customs, Chennai in WP Nos. 23836 & 24237 of 2024 and WMP Nos. 26088, 26089, 26481 to 26484 of 20024, vide order dated 22.11.2024 upheld the above mentioned ruling and held as follows: 25. That apart, the parameters fixed by the Advance Ruling Authorities was also confirmed and upheld by the Hon'ble Division Bench of this Court and the same was not at all challenged before the Hon'ble Apex Court. In such case, it is clear that the order passed by the Advance Ruling Authorities had attained its finality and hence, the law is well settled in the aspect of fixing the parameters for roasted areca nuts. However, without considering the said parameters, the respondents had arrived at a conclusion that the imported areca nuts are not "roasted areca nuts" ...... 28. That apart, as cont....
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....rmation that there are certain processes which are undertaken to get the subject goods from the raw ones and that there are considerable differences between the roasted Cashew Nuts, roasted Walnuts and roasted Pista Nuts and the Raw Cashew Nuts, Raw Walnuts and Raw Pista Nuts. Roasting and drying are not one and same processes and there is a sharp change in the moisture level, colour, appearance and flavour when the process of roasting is undertaken. Needless to say that in the market and trade also, roasted Cashew Nut, roasted Walnuts and roasted Pista Nuts are a well-known product and in common parlance it is called/selled/purchased and understood as roasted cashew nuts roasted Walnuts and roasted Pista Nuts itself. 8.1 In order to appreciate the scope of the recent legislative changes, the pertinent portion of CTH 2008 of the Chapter 20 of the Customs Tariff Act, 1975, as newly amended by the Finance Bill/Act, 2025, is set out below for ready reference: CTH 2008 is for "Fruit, nuts and other edible parts of plants, otherwise prepared or preserved, whether or not containing added sugar or other sweetening matter or spirit, not elsewhere specified or included." ....
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....that the subject goods in question i.e Oven Roasted Cashew Nuts, Walnuts and Pista Nuts are the edible parts of the plant. 9.2 Explanatory notes to heading explain that this heading covers fruit, nuts and other edible parts of plants, whether whole, in pieces or crushed, including mixtures thereof, prepared or preserved otherwise than by any of the processes specified in other Chapters or in the preceding headings of this Chapter. The explanatory notes further explain that this heading inter alia included: Almonds, ground- nuts, areca (or betel) nuts and other nuts, dry-roasted, oil-roasted or fat-roasted, whether or not containing or coated with vegetable oil, salt, flavours, spices or other additives. 9.3 I am of the considered view that the explanatory notes covers other nuts having Dry roasted, oil roasted or fat roasted. Oven Roasted Walnuts and Pista Nuts falls under the category of "other nuts" to get itself covered into the inclusions as enumerated in the said explanatory note. Further, the subject goods are a resultant of the roasting process as elaborated by the applicant in the application. Therefore in view of GRI 1 and HSN explanatory notes it is evident....