TaxTMI 
TaxTMI 
2026 (5) TMI 1243
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....ated 13.02.24 at ICD, Durgapur. (ii) Samples were drawn by the Officers of Customs and sent for testing to a FSSAI accredited laboratory, named EFRAC. The test report issued by EFRAC opined that the samples conforms to the standards as laid down in FSS Regulations 2011. ('First test report') (iii) DRI, Kolkata intervened the cargo just before Customs clearance. 100% examination of the goods was done in front of DRI officers, Customs officers and importer. (iv) Samples were again drawn by DRI officers from 05 containers and sent for testing to NFL, Kolkata. Reports from NFL, Kolkata opined that samples do not confirm to the standards as laid down in FSS Regulations 2011. The NFL, Kolkata also stated in their report that they cannot differentiate between Raw Arecanut and Roasted Arecanut as there is no such provision of distinctive parameters to differentiate between the two in FSSAI Regulations. ('Second testing report' dated 18.03.2024) (v) Summons were issued by DRI, Kolkata. Statement was recorded on 28.03.2024 and seizure memo dated 28.03.2024 was served by hand on the grounds that the impugned goods have been misclassified as 'Roasted Arecanu....
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....der CTH 20081920 as 'Roasted Arecanut' and set aside the confiscation of goods under section 111(d) and 111(m) . He also set aside the penalty imposed under Section 112(a) and (b) of the Act and directed the appellant Revenue to release the goods within 30 days of receipt of the said order. (xii) The Revenue has filed this appeal against the impugned Order-in-Appeal dated 22.01.2026. 3. The Respondent submits that they have obtained an Advance Ruling dated 17.11.2023 from the Customs Authority for Advance Rulings, New Delhi regarding classification of Roasted Arecanut; the Advance Ruling Authority has categorically stated that Roasted Arecanuts are appropriately classifiable under the Tariff Heading of 20081920. It is submitted by the respondent that the Department has challenged the operation of the Advance Rulings before the Hon'ble Calcutta High Court after importation of the above said consignments, but the Hon'ble High Court has not granted any Stay against the operation of the Advance Ruling. Thus, it is the respondent's contention that the classification of Roasted Arecanut confirmed under CTH 20081920 vide the Advance Ruling, specifically in their own case, is b....
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....He submits that in the Report, it has been stated that there is no mechanism to distinguish between the Raw Arecanut and Roasted Arecanut; thus, the Ld. adjudicating authority has adopted the findings in the First Test Report. Accordingly, he prayed for setting aside the impugned order passed by the Ld. Commissioner (Appeals) and allowing the appeal filed by the Department. 7. Heard both sides and perused the appeal documents presented before us. 8. We find that the Respondents have filed Bill of Entry No. 2122144 dated 13.02.24 at ICD Durgapur, describing the goods imported by them as 'Roasted Arecanuts' and classified the same under the CTH 20081920. The Officers of DRI initiated proceedings against the Respondent and issued Show Cause Notice proposing re-classification of the goods under the CTH 08028020. 8.1. It is on record that the Respondents have obtained an Advance Ruling dated 17.11.2023 from the Customs Authority for Advance Rulings, New Delhi regarding classification of Roasted Arecanut. The Advance Ruling Authority has categorically stated that Roasted Arecanuts are appropriately classifiable under the Tariff Heading 20081920. We find that the Department has c....
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....a Enterprises Vs Commissioner of Customs Chennai (WP No- 24237 of 2024), the Hon'ble Single Member bench of the Madras High Court has held that if moisture content is below 10%, the same should be treated as 'Roasted Arecanut'. The Department challenged the above order before the Division bench of Hon'ble Madras High Court (W.A. No- 3648 of 2024) and the Division Bench passed the order dated 04.03.2025, upholding the order of the Single Member bench. The relevant part of the said decision by the Division Bench of the Madras High Court is reproduced below for ready reference: - 4. Respondents had imported goods, which were declared as roasted areca nuts, from Indonesia. According to respondents, these goods would fall under Chapter 20 of Tariff 2008 1920 and were declared as such. 5. According to appellant revenue, what is imported was raw areca nuts, which would fall under Chapter 8 of Tariff 0802 80. Both areca nuts, whether raw or roasted, are not prohibited goods and can be imported. For the importation of raw areca nuts, a minimum price is fixed at Rs.351/- per kg., whereas no such minimum price was fixed for roasted areca nuts. 6. Respondent importer....
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....sture content in raw areca nut is found to be generally in the rage on 10-15%. As per applicant this test report indicates that the products were subjected to the roasting process. This aspect of product testing is a part of Customs Compliance Verification (CCV) process on importation of goods. Jurisdictional Customs Commissionerate carry out process of testing of imported goods with the help of concerned government partner agencies (GPAs) to cross-examine accuracy of declaration of goods in the import documents namely a Bill of entry and it's supporting documents before an out of charge (OOC) is granted. Hence, the utility of sample test report at this stage is limited to only support applicant's contention that the goods were subjected to the process of roasting and not merely to a moderate heat treatment." 9. Appellants did not permit clearance of the goods holding that what was imported was raw areca nuts and not roasted areca nuts. Show cause notices were issued and orders-in-original dated 22nd July, 2024 were passed holding that the goods imported were raw areca nuts and not roasted areca nuts. The orders-in-original levied various amounts as penalty, custom....
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....t August, 2023. A Co-ordinate Bench of this Court, of which one of us [Mohammed Shaffiq, J.] was a member, declined to interfere with the ruling of the Authority for Advance Rulings. The ruling has, therefore, attained finality. 15. Therefore, as per the parameters fixed by the Authority for Advance Rulings, if the moisture content is between 10% and 15%, the same would be considered as a raw areca nut and anything below the said category would be considered as roasted areca nut. The said finding has attained finality. All the laboratory reports also state that the moisture content of the areca nuts is below 10%. Therefore, we find no reason to interfere with the impugned order. 16. Appeals are dismissed. There shall be no order as to costs. Consequently, interim applications also stand dismissed. The department shall permit clearance of the goods within a week of this judgment being uploaded. 17. Learned Additional Solicitor General of India indicates that Revenue would be challenging this judgment in the Apex Court. 18. In view thereof, clearance be permitted against the importers giving a personal bond to be liable for any difference and impor....
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....TORY Referral Food Laboratory (Food Safety & Standards Authority of india) (Ministry of Health & Family Welfare) Telephone E-mail AHINSA KILAND-11, INDIRAPURAM, GHAZIABAD-201914 (UT') INDIA n/ grb@ fssai gav in E-mail n/ grb@ fssai gav in AHINSA KILAND-11, INDIRAPURAM, GHAZIABAD-201914 (UT') INDIA Report No, FC-88/July/25-WB Date 24.07.2025 Name of the Samplefitem "ROASTED ARECA NUT" ITC (IES) Code Big. 20041920 Code No. / Sample Nu, SIICD-DCF/3925-26, Dt. 14.07.2025 Ä® Type of sample Customs Sample submitted by The Aissure Deputy Commissioner of Customs, Inland Container Depel (ICD). EPIP. Banskogs, 2.0 Rajband, Dist-Bortwan- 713211, West bengal Date of Submission of the sample 21.07.2025 Reference No. Kolkata 84, Dated. 14.07.2023 Analysis duration 21.07.2025 to 24.07.2025 Hagelunion Sa as per F35 (Food Fradeets Searetard) 2.3.55 The Aissure Deputy Commissioner of Customs, Inland Container Depel (ICD). EPIP. Banskogs, 2.0 Rajband, Dist-Bortwan- 713211, West bengal ANALYSIS REPORT Sample Description Sample of "ROASTED ARECA NUT" WAL Mociund in a paly pack (man mig pack) kept in paper pack scaled by the Custom Ofer Physical ....