TaxTMI 
TaxTMI 
2026 (7) TMI 850
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.... The Applicant is engaged in the business of import and trading of Areca Nut (Betel Nut) and proposes to import Roasted Areca Nut from ASEAN countries, including Indonesia, Myanmar, Vietnam, and Thailand. 1.2 The proposed goods are whole areca nuts, which undergo the following processes in the country of export: ⮚ De-husking ⮚ Drying ⮚ Light roasting without addition of salt, flavouring agents, sweeteners, lime, or spices 1.3 The roasting process is undertaken solely to reduce moisture content, enhance shelf life, and prevent fungal infestation, and does not alter the essential character of the areca nut as an edible nut. 1.4 PROCESS FLOW CHART (To pre-empt objections on "mere drying" vs. true roasting) RAW ARECA NUT (Harvested) ↓ De-husking/ Cleaning ↓ Pre-Drying/Sun-Drying ↓ HIGH-HEAT ROASTING (= 130-150℃ or per supplier protocols) ↓ COOLING & MOISTURE REDUCTION (below industry target, e.g., <6%) ↓ SORTING / GRADING ↓ PACKING for export 1.5 The imported goods are: ⮚ Not sweetened ⮚ Not flavoured ⮚....
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....these two Tariff Item Nos are examined in the following paras. 1.11 Chapter 8 of the Customs Tariff covers fruits, nuts and peel of citrus fruits or melons (including watermelons) generally intended for human consumption (whether as presented or after processing). As per explanatory Notes to HS, these goods may be fresh (including chilled), frozen (whether or not previously cooked by steaming or boiling in water or containing added sweetening material) or dried (including dehydrated, evaporated or freeze-dried): provided 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). The note specifies the physical status of the goods along with corresponding processes that could be carried on those goods under this chapter. Note 3 to Chapter 8 further states that Dried fruits 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 ....
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.... 'roasted betel nuts. In the case of G.S. Auto International Ltd. vs. Collector of C.Ex. Chandigarh 2003 (152) ELT 3(SC), the Hon'ble Supreme Court held that this issue was no longer res intogia, as this Court had held earlier that the true test for classification was the test of commercial identity. Thus, it needs to be ascertained as to how the goods in question are referred to in the market by those who deal with them, be it for the purposes of selling, purchasing or otherwise, the Supreme Court held. In this regard, the Supreme Court cited and relied upon its earlier judgments in the cases of Jaishri Engineering Co. (P) Ltd. v. Collector of Central Excise [1989 (40) E.L.T. 214), Purewal Associates Limited v. Collector 1996 (87) E.L.T. 321 (S.C.), and Plasmac Machine Mfg. Co. Pvt. Ltd. v. Collector of Central Excise [1991(51) E.L.T.161(S.C.)] 1.16 Further, in the case of United Offsets Process Pvt. Ltd. Vs Assistant Commissioner of Customs [1988(38)ELT 568(SC), it was held that: "If there is no meaning attributed to the expressions used in the particular enacted statute then the items in the customs entries should be judged and analysed on the basis of how these expre....
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....not containing added sugar or other sweetening matter or spirit, not elsewhere specified or included. Roasting is a process used for bringing in to existence roasted nuts and as discussed earlier, it is clear that the process mentioned in Chapter 8 do not cover roasting process. 1.20 Further, As per Rule 3 (a) of the 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, prima facie, classifiable under more than one Heading, the 'most specific description' is preferred. When the Chapter/Section notes along with terms of heading and explanatory notes are examined for both Headings 0802 and 2008, it may be seen that roasted betel nuts find a specific description in Heading 2008. Therefore, on the application of GIR 3(b), the subject goods merits classification under Heading 2008 and more specifically under Sub- heading 2008 19 and Tariff Item no 20081920 as "Other roasted nuts and seeds" 1.21 Sub-heading 2008 19 specifically covers "Other nuts", and tariff item 2008 19 20 specifically enumerates Areca Nut. 1.22 Roasting is a recognized method of preparation/preservation, expl....
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....d that 'Roasted Areca Nuts-whole as well as cut merit classification under Heading 2008 and specifically under sub-heading 2008 19 20 of the First Schedule of the Customs Tariff Act, 1975. 1.31 The above decision of the Authority of Advance Ruling has been affirmed by the High Court of Judicature at Madras [2023(386) ELT 214 (Mad)] 1.32 The Authority of Advance Ruling, Delhi in the case of M/s RV International in application no. 66/2024 had ruled that "the Roasted areca/betel nuts fall under Custom Tariff Heading 2008, specifically under CTH 2008 19 20 'Other roasted nuts & seeds' of Chapter 20 of the First Schedule of the Customs Tariff Act, 1975.' 1.33 The Applicant in support of its claim that Roasted areca is classifiable under Tariff Item No 20081920 also relies upon the following Advance Ruling: * A-One Traders (Ruling No. CAAR/Del/A One/60/2023 (A.A.R-Cus-Delhi)) * M/s TMK Traders [Ruling No CAAR/Mum/ARC/89/Mumbai * Universal Impex 2023(385) ELT 587 (AAR-Cus-Mum) 1.34 The above discussed Advance Rulings are applicable in the present case also as the impugned goods, namely Oven Roasted Areca Nuts are identical to the prod....
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....g for consideration therein stands conclusively decided by the Hon'ble Madras High Court in case of M/s Shahnaz Commodities International Pvt. Ltd. [2023 (386) E.L.T 214(Mad.)]. In view of the said binding judicial pronouncement, the present application appeared, prima facie, to be hit by the bar under Section 28-I (2)(b) of the Customs Act, 1962 and are, therefore, liable for rejection. Consequently, a notice dated 21.05.2026 was issued to the applicant calling upon them to submit their response in the matter. 2.2 The additional submission of the applicant was received in this office on 18.06.2026. The same are reproduced hereunder: It is a matter on record that the Hon'ble High Court of Madras, in the landmark judgment rendered in the case of Commissioner of Customs vs. M/s. Shahnaz Commodities International Pvt. Ltd., has categorically held that imported roasted areca nut/betel nut is classifiable under Chapter Heading 2008, specifically under sub-heading 2008 19 20 of the First Schedule to the Customs Tariff Act, 1975, and not under Chapter 08. In view of the aforesaid judicial pronouncement, coupled with the admitted commercial processing undertake....
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....w or reject the application : Provided that the Authority shall not allow the application question raised in the application is, where the (a) already pending in the applicant's case before any officer of customs, the Appellate Tribunal or any Court, (b) the same as in a matter already decided by the Appellate Tribunal or any Court. 4.3 From the above, I find that Section 28-I (2) of the Customs Act, 1962 governs the admissibility of applications before the Custom Authority for Advance Rulings (CAAR). The first proviso to sub-section (2) stipulates that the Authority shall not allow the application where the question raised in the application is: (a) already pending in the applicant's case before any officer of customs, the Appellate Tribunal or any Court; or (b) the same as in a matter already decided by the Appellate Tribunal or any Court. 4.4 Further, I understand that the entire mechanism of advance rulings is a trade facilitation measure introduced with the aim of reducing litigation and providing certainty to assessees, consistent with Article 3 of the WTO Trade Facilitation Agreement. The WTO framework itself recogni....