TaxTMI 
TaxTMI 
2026 (1) TMI 1018
X X X X Extracts X X X X
X X X X Extracts X X X X
....igence, Kolkata Zonal Unit, that the importer M/s.Oliya Steel Private Limited was importing "betel nuts", correctly classifiable under CTSH 080280, by mis-declaring their description as "supari" (preparation of betel nut) and classifying them under CTH 21069030 to evade payment of Customs duty, investigation was initiated by the DRI KZU. The importer had filed three Bills of Entry bearing Nos. 7862395 dt. 14.03.2022, 8002256 dt. 24.03.2022 and 8011858 dt. 25.03.2022, for clearance through ICD Durgapur, with goods declared as "Boiled Betel Nut (Supari)" and "Menthol Flavoured Supari", declared classification as 21069030, and with a total declared value of Rs. 5,39,01,404/- (Rupees Five Crore Thirty Nine Lakh One Thousand Four Hundred and Fou....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ional assessment and on securing the differential duty through appropriate Bonds/Bank Guarantees. The importer later filed two more Bills of Entry Nos. 8907277 and 8913002 both dt. 31.05.2022, which were also released on provisional assessment. Representative samples were drawn from all the containers covered in the Bs/E and forwarded to CRCL, Kolkata for testing purposes where the parameters for analysis were 'nature and composition with physical characteristics', 'presence of additives or any other ingredients', 'any other test parameters', 'whether characteristics of dried nut is retained' and 'whether sample is areca nut of chapter 8 or food preparation containing betel nut of chapter 21'. On exam....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... nuts, packing in consumer packing and bulk packing after boiling do not remain 'fresh and dried' and as such are classifiable under CTH 21069030. Since, the concerned Principal Commissioner/Commissioner of Customs, as per the Advance Ruling relied upon by the importer, is the Commissioner of Customs, Nhava Sheva-1, Jawaharlal Nehru Custom House, i.e., did not fall under the jurisdiction of the concerned Commissioner in the instant case, therefore, it appeared that the subject Advance Ruling had no binding effect in terms of Section 28J of the Customs Act, 1962 as far as the imports through ICD, Durgapur. Further, CESTAT, Chennai vide its Final Order Nos. 40736-737/2021 dated 26.02.2021 (a combined order in the matters of M/s. S.T. ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....as boiling, retain their essential character as betel nuts, and are classifiable under Chapter 8, under the CTH 080280 (10/20/30/90); (ii) To be classifiable under Chapter 21, as supari, it needs to be a preparation containing betel nuts, which has undergone significant processing; it should be clearly distinguishable from its parent commodity which is betel nut; (iii) Heating, rehydrating, or treating the betel nuts for the purpose of preservation, stabilisation, or improving the appearance will not confer a different character on it, and they will remain classifiable under Chapter 8; (iv) Even if betel nuts are cut into different sizes, or essential/non-. essential oils, menthol, sweetening agents etc. are added, a betel nut rema....
X X X X Extracts X X X X
X X X X Extracts X X X X
....4.03.2022 and 8913002 and 8907277, both dated 31.05.2022 had incorrectly availed benefit under concessional rate of duty on goods. imported from Least Developed Countries under Notification 96/2008-Cus. dated 13.08.2008 as per COO certificates which showed "Cambodia" as the. country of origin. However, since the COO certificates appeared to bear incorrect description of goods as "menthol flavoured supari", "boiled betel nut (supari)", "unflavoured supari (betel nut product known as supari)", "betel nut product known as supari" etc. and HS code invariably as 21069030, it appeared that the subject COO certificates were not eligible to claim benefit of concessional duty. 2.5 In view of the foregoing, there appeared to be short-payment of du....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... proceedings against the respondent. 2.8 Aggrieved from the said order, the Revenue is before us on the ground that the adjudicating authority took cognizance of an observation made in passing by the Tribunal in the matter of M/s Ayush Business Overseas. Such view is binding and applicable to the parties to the litigation only and advance ruling is not binding precedent to be held. The respondent has not done proper classification. In that view, the impugned order is to be set aside. 3. On the other hand, the ld.Counsel for the respondent submits that although the adjudicating authority dropped the proceedings against the respondent, but the Bank Guarantee has not been released to them due to pendency of this appeal. It is his submiss....