TaxTMI 
TaxTMI 
2021 (5) TMI 1093
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.... and Mumbai with effect from 04.01.2021, 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 07.02.2020 had become time barred for this Authority. 4. However, on constructive interpretation of the powers vested with this Authority, vide letter dated 23.02.2021, 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); ....
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....pari', 'Flavoured Supari' and 'Unfavoured Supari' being processed Betel Nut products which do not contain specified ingredients namely lime, kathaand tobaccobut containing other flavouring materials/additives such as food starch, spices, mulethi, flavours, essence (food grade) etc. are classifiable under Customs Tariff Heading 2106 90 30 of the First Schedule to the Customs Tariff Act, 1975." 9. Finding that the application is valid in terms of the provisions of the Customs Act and the CAAR Regulations, 2021, having received the comments of the concerned Principal Commissioner of Customs, and having heard the applicant, I proceed to examine the matter. 10. The applicant has explained the processes involved in making four different products, as stated below: (i) For making 'API Supari (Boiled Supari)' from raw green fresh betel nut, large impurities are removed by labourers; thereafter, betel nuts are boiled for at least 6 hours; then it is mixed with good quality starch and ultimately after drying and polishing the processed API Supari is packed. (ii) For making 'Chikni Supari', raw green and fresh betel nuts are processed....
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....he applicant has contended that all the four goods are preparations of betel nut and in terms of the Supplementary Note 2 of Chapter 21, 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." They have also cited reference to ruling of the erstwhile AAR, New Delhi in the case of M/s Excellent Betelnut Products Pvt. Ltd. I will revert to it in my discussion later in the order. 12. Before proceeding to discuss the issues in the application for advance ruling, I summarize the opinion of the concerned Principal Commissioner of Customs. 12.1 The essence of the submission of the Principal Commissioner of Customs (NS-I) in his letter dated 11.03.2021 is that pure betelnuts or supari, which have not undergone changes, to merit being called as a product (sic) of supari would remain to be classified under Chapter 8; that there does not appear to be any c....
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.... 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.' 16. 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 case of M/s Excellent Betelnut Products Pvt. Ltd. do cover the four goods involved in the present proceedings; and 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 conclusion, AAR has been of the view that on account of the positive language of the Supplementary Note 2 to Chapter 21, it is not necessary for betelnut (supari) to undergo a change of character for it to be classified under Chapter 21. I also find ....
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....or 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 four goods solely with the prism of the positive nature of Supplementary Note 2 to Chapter 21. 19. 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 of Customs and more recently the Customs Authority for Advance Rulings, Mumbai in his Ruling No. CAAR/Mum/ARC/1/2021 dated 15.03.2021 in the case relating to M/s Samreen International Pvt. Ltd, Chennai. 20. To answer the posed question, I consider the three goods, namely API supari, Chikni supari and unflavoured supar....