TaxTMI 
TaxTMI 
2024 (5) TMI 1684
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....nesia, Vietnam, Sri Lanka, Cambodia, Laos & Singapore into India through the port falling under the Pr. Commissioner of Customs, Nhava Sheva-I, JNCH, Nhava Sheva, Tal: Urban, Dist. Raigad, Maharashtra - 400707. 2.1. The applicant submits that the firm M/s Vaibhav Enterprises, WZ-32A, Shop No. 1, Asalat Pur, Janak Puri, Delhi 110058 having IEC No. 0515063908 currently engaged in the local trading of pan shop related spices & betel nuts items. The Applicant intends to import the following goods and seeks ruling of Hon'ble Authority in the matter of classification of the goods which in the opinion of the Applicant are classifiable under chapter heading 0812 90 90 S. No. Name of Item Country from where to be imported 1. Provisionally Preserved Areca Nut (Whole) and Provisionally Preserved Areca Nut (Split) Myanmar, Thailand, Indonesia, Vietnam, Sri Lanka, Cambodia, Laos & Singapore. 2.2. Areca Nut is a tropical plant found all over South-East Asia. The tree belongs to the palm tree species and is from the Arecaceae family. The fruit (nut) of this tree is popularly known as betel nut or "supari" in India. The Areca nut is an important commercial plantation cr....
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.... 1975. Chapter 8 covers edible fruit and nuts, peels of citrus fruits or melons. Chapter note (3) to chapter 8 reads as follow -: "3. Dried fruits or dried nuts of this Chapter may be partially rehydrated, or treated for the following purposes: (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" Again, Chapter note (4) reads as follow -: (a) Heading 0812 applies to fruit and nuts which have been treated solely to ensure their provisional preservation during transport or storage prior to use (for example, by sulphur dioxide gas, in brine, in sulphur water or in other preservative solutions), provided they remain unsuitable for immediate consumption in that state." 2.8. Heading 0812 covers fruits and nuts provisionally preserved but unsuitable in that state for immediate consumption. Following are the four sub-headings under the above four....
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....ocess addition of sodium bi-carbonate and water will remove the excess peroxides. 2.11.4. In view of the above facts and legal provisions, the product "Provisionally Preserved Areca Nuts (whole) and Provisionally Preserved Areca Nut (Split)" are classifiable under Customs Tariff Heading 0812 90 90 of the First Schedule to the Customs Tariff Act, 1975". 2.12. On the matter of interpretation of law of facts, the applicant submits that as per their best knowledge and belief the items are classified under classification heading no. given in Custom Tariff heading 0812 90 90. 2.13. The said entry in Customs tariff Act' 1975 reads as under :- Tariff Item Description of Goods Unit 0812 10 00 - Cherries Kg's (Kilograms) 0812 90 - Other 0812 90 10 --- Mango Slices in brine 0812 90 90 --- Other Chapter 8 covers edible fruit and nuts, peels of citrus fruits or melons. Chapter note (3) to chapter 8 reads as follow -: "3. Dried fruits or dried nuts of this Chapter may be partially rehydrated, or treated for the following purposes: (c) for additional preservation or stabilization (for example, by moder....
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....oxide and sodium bicarbonate, further washing with water, these can be used for home consumption as it will turn into normal nuts classifiable under 0802. It is worth mentioning that the processes which applicant has mentioned are simple processes to preserve the goods for longer time and in no way change the basic nature/characteristics of the Areca Nut and thus the said goods are correctly classifiable under CTI 080280. Hence, to classify it under CTH 08129090 when a specific classification of areca nut is present, there appears to be an effort to evade higher Customs duty as well as circumvention of import policy of said goods (i.e. MIP condition for import of Areca Nuts). (iii) In this regard kind attention was drawn to the following Court/ tribunal case laws regarding roasting of nuts: Hon'ble CESTAT (Chennai), final order bearing nos. 40736-40737/2021 dated 26- 02-2021, in Appeal Nos. C/40002-40003/2021 (Appellants- M/s. ST Enterprises and M/s. Ayush Business Overseas, wherein Hon'ble CESTAT (Chennai), ordered that Areca nuts "whole" subjected to processes like de-husking, cleaning, boiling, preserving and drying, are classifiable under HS CODE 08028....
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....r 8. "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." C. The Tariff Item 0812 as claimed by the importer is produced below: 0812 Fruit and nuts provisionally preserved, but unsuitable in the state for immediate consumption. As per General Rules of Interpretation (GIR 1): "The titles of Sections, Chapters and sub-Chapters are provided for ease of reference only; for legal purposes, classification shall be determined according to the terms of the headings and any relative Section or Chapter Notes and, provided such headings or Notes do not otherwise require ... " Since there is a specific heading of areca nuts in Chapter 080280 the imported goods merits classification under Chapter 080280 and not under chapter 0812....
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....l together a different product from those in earlier ruling. It's is a distinct product. (iii) Further, the applicant placed reliance on the Advance ruling issued in the matter of identical goods vide CAAR/Mum/ARC/42/2023 dated 15.05.2023 and CAAR/Mum/ARC/26/2024 dated 22.02.2024, where the identical goods have been held classifiable under 0812 90 90. (iv) The applicant, further, requested for the instant Advance Ruling to be kept confidential as per Point no.27 "Publication of Orders or Advance Ruling" vide notification no.63/2022-Customs (N.T) dated 20.07.2022. 5. A personal hearing in the matter was conducted on 22.04.2024. During the personal hearing, the authorized representative representing the applicant explained in brief the reasons for filing the application and referred to a few earlier rulings of CAAR, Mumbai on the similar question of classification for goods in question. He reiterated the submissions given in their application for advance ruling. The AR further requested not to make the ruling in public to maintain confidentiality. Finding, Discussion and Conclusion 6. I have taken into consideration of all the materials placed on record....
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....state 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). 7.1.1 Chapter 8 under the Customs tariff Act 1975 covers Edible fruit and nuts; peel of citrus fruit or melons and note (3) to chapter 8 provided as: "3. Dried fruits or dried nuts of this Chapter may be partially rehydrated, or treated for the following purposes: (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" The Chapter note (3) specifies the physical status of the goods along with corresponding process that could be carried on those goods under this chapter. The areca/betel nut is mentioned in Heading 0802 as well as 0812. The explanatory note to Heading 0802 states that this heading also covers areca (betel) nuts used chiefly as a masticatory. One of th....