TaxTMI 
TaxTMI 
2024 (9) TMI 1908
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....ing the same b) Above areca nuts are put into oven for roasting. Areca nuts are roasted at temperature ranging around 1500 degree. Roasting is done using firewood/palm kernel based oven in need roasting machine under the temperature of flames around 600 Degree Celsius; c) After roasting in oven, areca nuts are taken out from oven and left open in room temperature; d) Again areca nuts are put in oven for roasting. The said process takes place again and again until water contents goes below 6%; e) Fresh areca nut is repeatedly heated, roasted and cooled to ensure higher quality. Roasting time is around 2-3 days; f) Thereafter, polishing process takes place and thereafter packaging of roasted areca nut. 1.1 That fresh areca nut after undergoing the process of roasting, became a different product as far as appearance and chemical characteristics are concerned. Therefore, raw areca nuts and roasted areca nuts are two distinct products. After roasting, areca nuts became suitable for immediate consumption and used for eating directly as well as with Paan (Betel Leaf). That the Applicant is of the bonafide opinion that "Roasted Areca Nut" are....
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....atment whereas chapter 20 includes process of roasting which involves high excessive heat treatment. That as per chapter note 3, processes of dehydration, drying and addition of some ingredients, heat treatment are meant for additional preservation or stabilization or to improve/maintain the appearance of the product. Process of roasting is not done for additional preservation or stabilization or to maintain, improve the appearance, Roasting process is done for immediate consumption of areca nut and it also changes the appearance. And chemical composition of the product. Therefore, a new product emerges after roasting process. After processing of roasting, there is visible deposition of an ash- like substance on the outer surface of the Areca nut. Tannin and Arecoline content of raw areca nut gets substantially changed by subjecting the same to roasting. Tannin contents are highest in unripe areca nut and decreases significantly after roasting. Roasting of nuts also made it crispy by changing its internal structure as well as chemical changing of the ingredients of the nuts by reducing of arecoline by homarcoline. Process of roasting is controlled to the extent of converting raw ar....
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.... already been submitted with the application for advance rulings. 3. The AR of the applicant submitted additional submissions to the comments of the concerned custom port Commissionerate, which are as under: - 3.1 That it is submitted that comments filed by the respondent on the application are not opposed for the advance ruling as sought by the applicant for the goods i.e. roasted areca nut under CTH 20081920. That it is further to add that the roasting falls under the process of Moderate Heat Treatment which is mentioned under Chapter Note 3 of Chapter 8 which examined as under and found that the term "Moderate heat Treatment" moisture content in 'Raw areca nut' is anywhere between 10% to 15%. After, the process of drying the moisture content is reduced to a maximum of 6% to 7%. Further any amount of drying or moderate heat treatment cannot remove the moisture content below the said level of 6%. Further, only by the process of roasting, by use of roasting ovens / furnace, the moisture content in "Roasted Areca Nut" is brought below 4% by process of competing of multiple cycle of heating and cooling of the nuts at room temperature. The roasting of the nuts also made ....
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....in the structure and composition of the goods, bringing about a charred physical appearance. Therefore, drying is a moisture removal process involving methods such as dehydration, evaporation, etc., whereas roasting is a severe heat treatment process completed in multiple cycles of process of heating and cooling. 3.4 That on examining the scope of CTH 2008 it is found that, as per HSN Explanatory Notes, heading 2008 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. Specifying what is included in this heading, the explanatory note states that 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. Dry- roasting, oil-roasting & fat-roasting, as a process, are very much a part of chapter heading 2008 by virtue of HSN Explanatory Notes. It is also pertinent to observe that none of these processes are mentioned in the chapter note 3 to Chapte....
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.... being maintained CTH 2008.19.20 which covers roasted nut including areca nut is a specific entry which opposed with the entries/items covering nuts under CTH 08. That it is submitted that the betel nut in its various forms finds classification in chapters 8, 20 and 21 of the schedule - I of the Customs Tariff Act, 1975 read with HSN Explanatory notes to the relevant headings under these chapters. General Rules of Interpretation (GRI), specifically rule 1 and rule 3(a), to the Customs Tariff Act, 1975 provide further context for understanding of various tariff entries in the Tariff. The legal framework mentioned above has to be factored in while deciding classification of roasted arena nut which is proposed to be imported by the applicant. 3.7 That as per General Rules of Interpretation (GIR) 3(a) of the Customs Tariff Act 1975, when by application of GIR 2(b) or for any other reason, the goods are prime facie, classifiable under more than one Heading, the 'most specific description' is Section notes along with terms of heading and explanatory notes are examined for both Headings 0802 and 2008, it is observed that roasted nuts which include roasted betel nuts find a spec....
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....treatment & dehydrating/drying referred in chapter 8 and processes of dry roasting, oil- roasting and fat-roasting referred in chapter 20. The terms dry-roasting, oil roasting and fat- roasting however are not defined in the Customs Tariff Act, 1975. Therefore, these terms have to be understood in a commonly accepted sense. The Hon'ble Apex Court in the case of Alladi Venkateswarlu v. Government of Andhra Pradesh 1978 AIR 945 held that : "The commonly accepted sense of a term should prevail in construing the description of an article of food". In common trade parlance, "drying" is a method of food preservation by the removal of water content. On the other hand, "roasting" means the excess or very high heat treatment that produces fundamental chemical and physical changes in the structure and composition of the goods, bringing about a charred physical appearance. Therefore, drying is a moisture removal process involving methods such as dehydration, evaporation, etc., whereas roasting is a severe heat treatment process". 4.2. I also note that Chapter 20 of the Tariff covers the Preparations of vegetables, fruits, nuts or other parts of plants. As per Chapter Note 1 (a....
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...., 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. Specifying what is included in this heading, the explanatory note states that 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. Dry-roasting, oil-roasting & fat-roasting, as a process, are very much a part of chapter heading 2008 by virtue of HSN Explanatory Notes. It is also pertinent to observe that none of these processes are mentioned in the Chapter Note 3 to Chapter 8 of the Customs Tariff Act, 1975 as well as HSN Explanatory Notes to Chapter heading 0802. 4.5. Moreover, it is, an established fact that in case of any doubt the HSN is a safe guide for ascertaining the true meaning of any expression used in the Tariff Act. While delivering Phil Corporation Judgment Honourable Supreme Court has clearly spelt out importance of HSN Explanatory notes in deciding the matters of classification placing reliance on the judgment of Supreme Court in the c....