AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2025 (12) TMI 1486
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.... Almond nuts from United States of America and Australia. d) Roasted Pista nuts from Vietnam, Thailand and Malaysia. 2 The applicant is of the bonafide belief that the subject goods are rightly classifiable under 2008 19. Therefore, the present application is filed to ascertain the correct classification and eligibility of Notification benefit for the subject goods: S. No Subject Goods Proposed CTH Classification Proposed Eligibility of Notification Benefit 1 Roasted Cashew Nut CTH 200819 10 (1) SI. No. 172 of Notification No. 46/2011-Cus dated 01.06.2011 2 Roasted Areca Nut CTH 200819 20 (1) SI. 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 Almond Nut CTH 200819 20 (1) SI. No.622 of Notification No. 62/2022-Customs dated 26.12.2022 (when imported from Australia) 4 Roasted Pista Nut CTH 200819 20 (1) SI. No. 172 of Notification No. 46/2011-Cus dated 01.06.2011 Applicant's interpretation of Law: 3. Roasted Cashew Nuts Imported from Vietnam, Thailand and Malaysia: 3.1 As per the applic....
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....s in an oven of the seed roasting machine; (3) Take the areca nuts out of the oven, 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; and (4) The fresh areca nuts are repeatedly heated, roasted and cooled to ensure that the areca nuts are quickly cooled and shrunk after thermal expansion so that the roasted areca nuts have higher quality; the roasting time is around 2-3 days. 4.2. 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 ....
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....natory notes these goods may be fresh (including chilled), frozen (whether or not previously cooked by steaming or boiling in water or containing added sweetening matter) or dried (including dehydrated, evaporated or freeze-dried): provided they are unsuitable for immediate consumption in that state, they may be provisionally preserved (e.g., by sulphur dioxide gas, in brine, in sulphur water or in other preservative solutions). The note specifies the physical status of the goods along with corresponding processes that could be carried on those goods under this chapter. Note 3 to Chapter 8 further states that Dried fruit or dried nuts of this Chapter may be partially rehydrated, or treated for the following purposes: a) for additional preservation or stabilisation (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. 4.5. The areca/betel nut is mentioned in Heading 0802, specifically under sub- heading 080280. The e....
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....other nuts, dry-roasted, oil-roasted or fat-roasted, whether or not containing or coated with vegetable oil, salt, flavours, spices or other additives. From the forgoing it can be seen that the subject goods find specific reference in the chapter 20 of the schedule I of the Customs Tariff Act, 1975 as well as corresponding HSN Explanatory Note. It is important to pay attention to the fact that in the above explanatory note a process of roasting is not specifically mentioned as a process of preservation or stabilization or a process to improve or maintain the appearance. 4.8. The applicant submits that on various online marketplaces like https://www.amazon.in/, https://indiamart.com, https://flipkart.com etc. roasted betel nuts as products are sold. This clearly indicates that the goods have both buyers and sellers and that they are known in the trade and sold in the market as roasted betel nuts. Therefore, assuming without admitting, even if the term is not defined in the statute, the product has to be understood and recognized in terms of common trade parlance. It is a well-settled principle that words in a taxing statute must be construed in consonance with their commonly acce....
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...., including mixtures: 2008 19 20 -- Other roasted nuts and seeds. and Roasted Almond nuts imported from Australia are eligible to avail the benefit of SI. No. 622 of Notification No. 62/2022-Customs dated 26.12.2022. 5.3. As per the applicant the preparation process being preheating, lining the baking sheet, and roasting - transforms the raw almonds 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. 5.4 The applicant 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 whic....
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....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 precise description than a general heading for nuts under Chapter 08. 7. Port of Import and reply from jurisdictional Commissionerate: The applicant is intending to import the subject goods from the Ports/ICDs under the jurisdictional Commissionerates of Chennai-II (Import) Commissionerate, Customs Commissionerate Mundra, Customs Commissionerate Tuticorin, Customs Commissionerate Ludhiana, Customs Commissionerate Kolkata (Port -Import) and Customs Commissionerate Hyderabad. In this regard, the comments received from the jurisdictional Commissionerates are as below: 7.1. Comments from the Customs Commissionerate, Ludhiana: With reference to the classification of roasted areca nuts, reference is invited to the DGFT Notification 02/2025-26 dated 02.04.2025 regarding Amendment in import policy and policy conditions of Roasted Areca Nuts falling under ITC (HS) Code 20081920 of Chapter-20 of ITC (HS), 2022, Schedule-I (Import Policy)-reg. As per the ibid notification, roasted nuts must ....
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....CTH. Roasted areca I betel nut having been mentioned in CTH 2008 19 20 under HSN. (d) When there is a specific entry covering a product/commodity, the test of common parlance is irrelevant in determining classification. (e) There is considerable force in the submission that the classification as far as possible must be in conformity and in consonance with the HSN Explanatory Notes. The above judgement of the Hon'ble High Court of Madras has been accepted by the CAAR, Mumbai also and the application filed by M/s. ATM Exports and Imports was rejected on the same grounds vide Order No. CAAR/Mum/ARC/4,5/2025-26 dated 11.04.2025. In view of the forgoing and in exercise of the powers vested in section 28- I of Customs Act 1962, the CAAR may not entertain the application to that extent since the CAAR has ruled that the issue has already been decided by the Hon'ble High Court of Madras. 7.2.2. Roasted Almond Nuts Imported from United States and Australia and Roasted Pista Nuts Imported from Vietnam, Thailand and Malaysia: The processing of both ROASTED ALMOND NUTS and ROASTED PISTA NUTS is similar to the processing of ROASTED ARECA NUTS. As per the applicant....
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....s- Burma (Myanmar), Indonesia, Thailand and Sri Lanka is classifiable under Chapter Sub-Heading 20081920 of the first schedule to the Customs Tariff Act, 1975?' A. Roasting as a process appears to fall under 'moderate heat treatment' mentioned in Chapter Note 3 of Chapter 8, which is reproduced below- "3. Dried fruits and dried nuts of this Chapter may be partially rehydrated, or treated for the following purpose: 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 nut." B. Further, applicant's claim that fresh areca nuts are repeatedly heated, roasted and cooled to ensure that the areca nuts are quickly cooled and shrunk after thermal expansion so that the roasted areca nuts have higher quality, the roasting time is around 2-3 days. After repeated roasting of the areca nuts at the high temperature in a roasting oven due to which the....
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.... other parts of plants", mere roasting of areca nut does not render the product to be distinctive as claimed by the applicant or does not alter the character of the original good. Hence, it remains the areca nut and is rightly classifiable under Chapter 08. According to Cambridge Dictionary, Preparation is a mixture of substances, often for use as a medicine". According to Collins Dictionary 'A preparation is a mixture that has been prepared for use as food, medicine, or a cosmetic." However, in the process flow, it is evident that there is neither any mixture of products nor any change in the original good which tantamount to no preparation. Hence, the impugned goods rightly classified under Chapter 080280. G. The applicant has claimed that dry Roasted Areca Nuts are specifically covered under Chapter Heading 2008. The relevant portion of the chapter heading 2008 is reproduced below: CTH 2008: Fruits, nuts and other edible parts of plants, otherwise prepared or preserved; whether or not containing added sugar or other sweetening matter or split, not elsewhere specified or included -Nuts, ground nuts and other seeds, whether or not mixed together: 200....
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....uts clearly excluded from the scope of the chapter 20 and rightly classifiable under chapter 08. Further, as per Rule 3(a) of General Rules for the Interpretation of the Harmonized System since the product is more specifically classified under CTH 08020 classification under Chapter 2008 or 2106 is unwarranted. When by application of Rule 2 (b) or for any other reason, goods are, prima facie, classifiable under two or more headings, classification shall be effected as follows: 1. The heading which provides the most specific description shall be preferred to headings providing a more general description. However, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set put up for retail sale, those headings are to be regarded as equally specific in relation to those goods, even if one of them gives a more complete or precise description of the goods I. The Chapter Note I of Chapter 20 says that this chapter does not cover: vegetables, fruit or nuts, prepared or preserved by the processes specified in chapter 7, chapter 8, or chapter 11. Chapter 20 heading reads "pr....
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.... the classification of betel nut under chapter 20 and 21 in the interest of the local areca nut farmers and to safeguard the interest of the revenue. L. In this regard, it is submitted that as per Chapter Note 3 of Chapter 8 as long as the goods retain the character of dried nut, they remained classified under CTH 080280. Since the Areca nut which has undergone the processes wherein it does not lose its original character i.e. in raw form, the item areca nut shall be covered under CTH 080280. M. As per Explanatory Notes of CTH 2008, The Heading 2008 includes, inter alia: 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. N. As per Explanatory Notes of Chapter 8, The Chapter excludes "Roasted fruit and nuts (e.g., chestnuts, almonds and figs), whether or not ground, generally used as coffee substitutes." O. As per General Rules of Interpretation Rule 3(a) - The heading which provides the most specific description shall be preferred to headings providing a more general description. However, when two o....
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....dictional Commissionerates. Therefore, I proceed to pronounce a ruling on the basis of information available on record as well as existing legal framework. 9.2. The Applicant has sought advance ruling in respect of the following question: 1. Whether the Roasted Cashew Nuts is classifiable under CTI 200819 10 and SI. No. 172 of Notification No. 46/2011-Cus dated 01.06.2011is applicable or not? 2. Whether Roasted Areca Nut is classifiable under CTI 200819 20 and SI. No. 172 of Notification No. 46/2011-Cus dated 01.06.2011 and List 5 of Notification No.26/2000- Cus dated 01.03.2000 (when imported from Sri Lanka) is applicable or not? 3. Whether Roasted Almond Nut is classifiable under CTI 200819 20 and SI. No.622 of Notification No. 62/2022-Customs dated 26.12.2022 (when imported from Australia) is applicable or not? 4. Whether Roasted Pista Nut is classifiable under CTI 200819 20 and SI. No. 172 of Notification No. 46/2011-Cus dated 01.06.2011 is applicable or not? 9.3. At the outset, I find that the issue raised in the question in the Form CAAR-1 is squarely covered under Section 28H(2) of the Customs Act, 1962 being a matter related to clas....
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....ahnaz Commodities International P. Ltd. cited supra. However, it is pertinent to underline that in the case of M/s Universal Impex vide ruling no. CAAR/Mum/ARC/39,40,41/2023 dated 12.05.2023, the authority held as following: "4.17 I have perused a test report issued by ABC Techno Labs India Pvt. Ltd., Chennai dated 31.03.2023 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 range 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 2024, vide order dated 22.11.2024 observed and held as follows: "28. That apart, as contended by the petitioners, both the areca nuts (raw areca nuts and roasted areca nuts) are not prohibited goods and the same can be imported. For the importation of raw areca nuts, the minimum price fixed is a sum of Rs. 351/- per kg, whereas, no such minimum price was fixed for the roasted areca nuts. Und....
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.... Nuts to a maximum of 7%, which is also quite lower than the applicant's claim of 10-15% water content. Accordingly, I rule out the claim of the applicant contending that the said goods are "Roasted Areca Nuts". Accordingly, keeping in view the Judgment of Hon'ble High Court of Madras in WP Nos. 23836 & 24237 of 2024 and WMP Nos. 26088, 26089, 26481 to 26484 of 2024, vide order dated 22.11.2024, I am of the view that the subject goods merits classification under CTH 0802 only, which covers "Other nuts, fresh or dried, whether or not shelled or peeled" since the applicant itself has claimed that the subject goods have moisture content of 10-15%. Accordingly, considering the arrangement of tariff classification and in terms of General Rules of Interpretation (GIR) 1 and 3(a), I find that product merits classification under CTH 0802 and more specifically under CTI 08028010 ( -- Whole), 08028020 ( -- Split), 08028030 ( -- Ground) and 08028090 ( -- Other). Needless to say, that at the time of importation of subject goods, the Customs may duly examine the goods to verify the genuineness of the claim of the applicant through proper testing to ascertain the nature of the good....
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....ady reference: 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: 20081100 - Ground-nuts 2008 19 -Other, including mixtures: 2008 19 10 -Cashew nut, roasted, salted or roasted and salted --- Makhana: 20081921 --- Popped 20081922 --- Flour and powder 20081929 - Other -- Other: 20081991 --- Other Roasted Nuts and Seeds 20081992 --- Other Nuts, otherwise prepared or preserved 20081993 -- Other Roasted and fried vegetable products 20081999 --- Other 2008 20 00 - Pineapples 2008 30 - Citrus fruit: 20083010 - Orange 2008 30 90 - Other It can be seen from the above Tariff arrangement that the goods i.e., cashew nuts, roasted, salted or roasted and salted has specific entry in the Customs Tariff as CTI 2008 1910. Further, in the case of Commissioner of Central Excise v. Wockhardt Life Sciences Ltd. (2012 (277) E.L.T. 299 (S.C.)), it was held that "Cla....
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....upreme Court in the case of CC v. Business Forms Ltd., 2002 (142) E.L.T. 18 (S.C.). 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. Heading 2008 covers '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'. It is quite obvious that the subject goods in question is "an edible part of plants". 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. "....
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....erential BCD under Notification No. 46/2011-Cus, is subject to the importer proving to the satisfaction of the Deputy Commissioner of Customs or Assistant Commissioner of Customs, as the case may be, that the goods in respect of which the benefit of this exemption is claimed are of the origin of the countries as mentioned in Appendix I or Appendix II of the said Notification, in accordance with provisions of the Customs Tariff Determination of Origin of Goods under the Preferential Trade Agreement between the Governments of Member States of the Association of Southeast Asian Nations (ASEAN) and the Republic of India Rules, 2009, published in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 189/2009-Custous (N.T.) dated the 31st December 2009 and in terms of the Customs (Administration of Rules of Origin under Trade Agreements) Rules, 2020. 9.5.2. Further, preferential BCD under Notification No. 26/2000-Cus dated 01.03.2000, is subject to the importer proving to the satisfaction of the Deputy Commissioner of Customs or the Assistant Commissioner of Customs, as the case may be, in accordance with the Customs Tariff (Determination ....