TaxTMI 
TaxTMI 
2021 (6) TMI 1196
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....1, the said application was transferred to CAAR, New Delhi in terms of section 28-F(3) ibid and regulation 31 of CAAR Regulations, 2021. 3. On perusal thereof, and in view of the time limit of three months for pronouncing its advance rulings from the date of receipt of this application prescribed under section 28-I(6) ibid, it was held that the aforesaid application received in the O/o AAR, New Delhi on 23.05.2019 had become time barred for this Authority. 4. However, on constructive interpretation of the powers vested with this Authority, vide letter dated 09.03.2021, the applicant was advised to intimate whether they continued to be interested in obtaining ruling of this Authority, and if so either resubmit their application in the Form CAAR-I appended to Customs Authority for Advance Rulings Regulations, 2021, or simply affirm that the declarations made in the earlier application remain valid and unchanged, at the earliest to this Authority. It was also informed that the date of receipt of such resubmitted application or affirmation, as the case may be, shall be taken as the date of receipt of their application under regulation 8(4); and no separate payment of the prescrib....
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....he Authority for Advance Rulings. 8. As per the application, it is submitted that the applicant proposes to import various Betel Nuts products, namely, 'API Supari', 'Chikni Supari', 'Unflavoured Supari, Flavoured Supari, and 'Boiled Supari'. The process of preparation in the proposed import products is given as under: (i) 'API Supari': Following processes are conducted on raw green fresh betel nut: removing of large impurities by labour, boiling in water for 6-8 hours with lemon peels/or food starch for imparting good texture to the said products thereafter drying, polishing and packaging the same. (ii) 'Chikni Supari': Following processes are conducted on raw green fresh betel nut: removing of large impurities by labour, slicing the betel nut in horizontal cut as required, thereafter boiling the same in water for 6-8 hours with lemon peels/or food starch for imparting good texture to the said products, drying, polishing and packaging. (iii) 'Unflavoured Supari': Following processes are conducted on raw semi-dried betel nut: removing of large impurities by labour, removing of small impurities by de-s....
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....he process of preparation of the import item has been given wherein apart from preparation of Boiled Supari, process of preparation involved in a number of other products, namely, API Supari, Chikni Supari, Unflavoured and Flavoured Supari has also been elaborated. The processes involved in obtaining five different type of Supari that have been described in the application, there is no specific reference to the process of boiling in respect of flavoured and unflavoured supari. However, I note that the process in the said two cases is described to begin with raw semi-dried betel nut, presumably obtained involving the process of boiling. 11. The applicant has contended that the products proposed to be imported are processed betel nut, which do not contain specified ingredients namely lime, katha and tobacco but contains other flavoured materials and additives, are classifiable under Customs Tariff heading 21069030 and referred to the Supplementary Note 2 of Chapter 21, which states that, "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 to....
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....heading 21069030, i.e., betel nut products known as supari. 14. Further, since the question relates to classification of goods proposed to be imported, guidance of the Harmonized Commodity Description and Coding System of the World Customs Organization, to which India is a signatory, would be useful. It is seen that with respect to Chapter 8, the HSN prescribes the following as general guidelines: - 'Fruit and nuts of this Chapter may be whole, sliced, chopped, shredded, stoned, pulped, grated, peeled or shelled. The addition of small quantities of sugar does not affect the classification of fruit in this Chapter.' 15. Further, on perusal of the advance rulings given by the erstwhile AAR, New Delhi, which have been referred to by the applicant, I find that in the case of M/s Excellent Betelnut Products Pvt. Ltd. four goods (i.e. other than boiled supari) involved in the present proceedings are covered; whereas in the case of M/s Oliya Steel Private Limited all the five goods are covered. In both these rulings, the erstwhile AAR has concluded that the said products merit classification under sub- heading 21069030. I find that in reaching this conclusi....
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....le under Chapter 21 by virtue of Supplementary note 2 of Chapter 21. Alternatively, whether the processes carried out on the same for cleaning, preserving and making them more attractive to certain tastes/preferences are too minor to fall short of rendering them as preparations of betel nuts. Further, it would be inadvisable and inappropriate to approach the issue of classification of the said five goods solely with the prism of the positive nature of Supplementary Note 2 to Chapter 21. 18. Before I proceed to answer the question on which advance ruling has been sought, I wish to clarify that on careful consideration of the legal construct and specific provisions of section 28-J(I) of the Customs Act, 1962, I am of the view that the task before me as the Customs Authority for Advance Rulings cannot be to pass rulings on questions of classification of goods simply based on the previous ruling of AAR, even as I readily acknowledge the persuasive value of the same. Therefore, in arriving at my ruling, I refer to the judgments relied upon by the applicant, concerned Principal Commissioner/Commissioner of Customs and more recently the Customs Authority for Advance Rulings, Mumbai in ....