TaxTMI 
TaxTMI 
2026 (9) TMI 1046
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.... GST bearing registration no. 24CQLPP4918HIZJ. The applicant is intending to import of following goods from the Nhava Sheva Port: a) Oven Roasted Areca nuts from Myanmar, Thailand. Indonesia and Cambodia. b) Oven Roasted Pistachios from Iran, Thailand, Malaysia and Vietnam. c) Oven Roasted Almond nuts from Thailand, Malaysia and Vietnam. d) Oven Roasted Cashew nuts from Vietnam, Thailand, Cambodia and Malaysia. 2.1 The applicant is of the bonafide belief that the subject goods are rightly classifiable under CTH sub heading 2008 19 of the First Schedule of the Customs Tariff Act, 1975, as amended. Therefore, the present application is being filed to ascertain the correct classification and eligibility of Notification benefit for the following subject goods: SI. No. Subject Goods Proposed Proposed Eligibility of Notification Benefit 1. Oven Roasted Areca Nuts 200819 91 (1) SI. No. 172 of Notification No.46/2011-Cus dated 01.06.2011 (when imported from Myanmar, Thailand. Indonesia and Cambodia) 2. Oven Roasted Pistachios 200819 91 (1) SI. No. 172 of Notification No.46/2011-Cus dated 01.06.2011 (when imported fr....
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....n the basis of the nature and composition of the product proposed to be imported. It has been contended that whether the goods actually imported conform to the stated nature and composition can always be verified and tested upon their arrival in India. The applicant has further submitted that the process carried out on the subject goods has been explained above and that the details furnished are sufficient for the Authority to arrive at a conclusion regarding the classification of the product. 3.2.3 The applicant has submitted that it is of utmost importance to place on record that the applicant proposes to classify the roasted Areca Nuts under CTH 2008 19 91, which covers "Other roasted nuts and seeds". In this regard, the applicant has submitted that the tariff entry "Other roasted nuts and seeds" was initially classified under CTH 2008 19 20, as reproduced below: 2008 Fruit, nuts and other edible parts of plants, otherwise prepared or preserved, whether or not containing added sugar or other sweetening matter or spirit, not elsewhere specified or included; - Nuts, ground-nuts and other seeds, whether or not mixed together, 2008 19 -- Other including....
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....e of classification of goods. The applicant has also relied upon the judgment of the Hon'ble Supreme Court in Collector of Customs, Bombay v. Business Forms Ltd., reported in 2002 (142) E.L.T. 18 (S.C.), wherein, according to the applicant, due consideration was required to be given to the HSN Explanatory Notes while classifying goods. 3.2.6 The applicant has submitted the HSN Explanatory Notes to Heading 2008, as published by the World Customs Organization (WCO), which are reproduced below: "this heading covers fruits, 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 process specified in other Chapters or in the preceding headings of this Chapter. If includes, inter alia' (1) 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." The above words are crystal clear that nuts which are dry-roasted, oil-roasted or fat-roasted, whether or not containing or coated with vegetable oil, salt, fla....
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....d product, roasted areca nuts are simply roasted and preserved. leading to their' distinct classification. Further, Chapter 2008 explicitly includes nuts that are roasted, making it the appropriate and specific classification for roasted areca nuts. 3.2.8 Further submitted that, Chapter 8 covers fruit, nuts and peel of citrus fruit or melons (including watermelons), generally intended for human consumption (whether as presented or after processing). As per HISN explanatory notes these goods may be fresh (including chilled), frozen (whether or not previously cooked by steaming or boiling in water or containing added sweetening matter) 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 fruit or dried nuts of this Chapter may be partially rehydrated, or treated for the following purpo....
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....seeds. While 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. From the forgoing it can be seen that the subject goods find specific reference in the chapter 20 of the schedule I of the Customs Tariff Act, 1975 as well as corresponding HSN Explanatory Note. It is important to pay attention to the fact that in the above explanatory note a process of roasting is not specifically mentioned as a process of preservation or stabilization or a process to improve or maintain the appearance. 3.2.12 The applicant further submitted that on various online marketplaces like https://www.amazon.in/, https://indiamart.com, https:....
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....Areca Nuts are classifiable under CTH 2008 19 20, which has subsequently been substituted by CTH 2008 19 91: i. Ruling No. CAAR/Mum/ARC/89/Mumbai dated 06.06.2024, passed by the Hon'ble Authority, Mumbai, in In re: TMK Traders; ii. Ruling No. CAAR/Del/Devsar/73/2024/1590-1596 dated 01.11.2024, passed by the Hon'ble Authority, Delhi, in In re: Devsar Traders; iii. Ruling No. CAAR/Del/Saga/60/2024 dated 30.09.2024, passed by the Hon'ble Authority, Delhi, in In re: Saga International; iv. Ruling No. CAAR/Del/Exim/30/2024/1028 dated 05.07.2024, passed by the Hon'ble Authority, Delhi, in In re: Exim Incorporation; v. Ruling No. CAAR/Del/Prenda/29/2024/1017-1021 dated 28.06.2024, passed by the Hon'ble Authority, Delhi, in In re: Prenda Creations Pvt. Ltd .; vi: Ruling No. CAAR/Del/Perfect/01/2024/639 dated 05.01.2024, passed by the Hon'ble Authority, Delhi, in In re: Perfect Trading Co .; and vii. Ruling No. CAAR/Del/Rawder/55/2024 dated 19.09.2024, passed by the Hon'ble Authority, Delhi, in In re: Rawder Petroleum Pvt. Ltd. 3.2.16. The applicant has further submitted that the Division Bench of ....
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....achios, are appropriately classifiable under CTH 2008 19 91. It has been submitted that, prior to the amendment made by the Finance Act, 2025, the relevant tariff entry for roasted nuts and seeds was CTH 2008 19 20, which read as under: 2008 - Fruit, nuts and other edible parts of plants, otherwise prepared or preserved, whether or not containing added sugar or other sweetening matter or spirit, not elsewhere specified or included. - Nuts, ground-nuts and other seeds, whether or not mixed together: 2008 19 -- Other, including mixtures 2008 19 20 --- Other roasted nuts and seeds. The Applicant has further submitted that, vide Section 103 of the Finance Act, 2025, the relevant tariff entries under CTH 2008 19 were substituted. Consequently, the erstwhile entry CTH 2008 19 20 - "Other roasted nuts and seeds" was replaced by CTH 2008 19 91 - "Other roasted nuts and seeds", along with other newly created tariff items. The relevant entries, as relied upon by the Applicant, are as follows: --- Makhana 2008 19 21 ---- Popped 2008 19 22 ---- Flour and powder 2008 19 29 ---- Other ---- Other: 2008 19....
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...., now substituted by CTH 2008 19 91, is appropriate since "other roasted nuts and seeds" are specifically covered under the said tariff entry. 3.3.6 The Applicant has submitted that Chapter 08 of the Customs Tariff primarily covers edible fruit and nuts, including those which are fresh or dried. According to the Applicant, the subject goods have undergone the process of roasting and, therefore, are no longer merely fresh or dried nuts. It has consequently been contended that classification of the roasted pistachios under Chapter 08 would not be appropriate. 3.3.7. The Applicant has further relied upon Rule 3(a) of the General Rules for the Interpretation of the Import Tariff, which provides that where two or more headings appear to merit consideration, the heading providing the more specific description of the goods is to be preferred over a heading providing a more general description. In this regard, the Applicant has contended that CTH 2008 19 91, which specifically covers "Other roasted nuts and seeds", provides a more precise description of the subject goods than the general entries covering nuts under Chapter 08. Accordingly, the Applicant has submitted that the subject....
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....ther or not containing added sugar or other sweetening matter or spirit, not elsewhere specified or included. - Nuts, ground-nuts and other seeds, whether or not mixed together: 2008 19 - - Other, including mixtures 2008 19 20 --- Other roasted nuts and seeds. The Applicant has further submitted that, vide Section 103 of the Finance Act, 2025, the relevant tariff entries under CTH 2008 19 were substituted. Consequently, the erstwhile entry CTH 2008 19 20 - "Other roasted nuts and seeds" was replaced by CTH 2008 19 91 - "Other roasted nuts and seeds", along with other newly created tariff items. The relevant entries, as relied upon by the Applicant, are as follows: --- Makhana 2008 19 21 ---- Popped 2008 19 22 ---- Flour and powder 2008 19 29 ---- Other --- Other: 2008 19 91 ---- Other roasted nuts and seeds 2008 19 92 ---- Other nuts, otherwise prepared or preserved 2008 19 93 ---- Other roasted and fried vegetable products 2008 19 99 ---- Other. 3.4.3 It has therefore been contended that the amendment merely restructured the tariff sub- classification under CTH 2008 19....
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....ubject goods have undergone the process of roasting and, therefore, are no longer merely fresh or dried nuts. It has consequently been contended that classification of the roasted almond nuts under Chapter 08 would not be appropriate. 3.4.7. The Applicant has further relied upon Rule 3(a) of the General Rules for the Interpretation of the Import Tariff, which provides that where two or more headings appear to merit consideration, the heading providing the more specific description of the goods is to be preferred over a heading providing a more general description. In this regard, the Applicant has contended that CTH 2008 19 91, which specifically covers "Other roasted nuts and seeds", provides a more precise description of the subject goods than the general entries covering nuts under Chapter 08. Accordingly, the Applicant has submitted that the subject roasted almond nuts merit classification under CTH 2008 19 91. 3.4.8. The Applicant has also relied upon the HSN Explanatory Notes to Heading 20.08, the relevant portion of which has been reproduced as under: "this heading covers fruits, nuts and other edible parts of plants, whether whole, in pieces or crushed, inclu....
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....process undertaken in respect of the subject goods, namely preheating, lining of the baking sheet and roasting, transforms the raw cashews into a form that falls within the description of "otherwise prepared or preserved" nuts. It has therefore been contended that the subject goods are appropriately covered under Heading 2008, which encompasses fruits, nuts and other edible parts of plants, otherwise prepared or preserved, whether or not containing added sugar or other sweetening matter or spirit, and not elsewhere specified or included. The Applicant has further submitted that classification under CTH 2008 19 10 is appropriate as roasted cashew nuts are specifically covered by the said tariff entry. 3.5.3 The Applicant has submitted that Chapter 08 of the Customs Tariff covers edible fruits and nuts, including those which are fresh or dried. It has been contended that the subject goods have undergone the process of roasting and are therefore no longer in the form of fresh or merely dried nuts. Accordingly, the Applicant has submitted that classification of the subject roasted cashew nuts under Chapter 08 would not be appropriate. 3.5.4 The Applicant has further submitted tha....
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....d the product to be classifiable under CTH 2008 19 10. It has been contended that these rulings support the proposition that roasted cashew nuts fall under the aforesaid tariff entry. The Applicant has additionally relied upon United States Customs rulings NY N381459 dated 20.09.2000 and NY 183434 dated 22.07.2002, wherein, according to the Applicant, similar roasted cashew products were classified under the corresponding tariff provision covering roasted nuts. The Applicant has submitted that the consistency of classification adopted by different customs authorities in respect of roasted cashew nuts further supports classification of the subject goods under CTH 2008 19 10. 3.5.8 In view of the above submissions, the Applicant has claimed that the subject roasted cashew nuts are appropriately classifiable under CTH 2008 19 10 and that, when imported from Thailand, Malaysia, Cambodia and Vietnam, they are eligible for the benefit of Sl. No. 172 of Notification No. 46/2011-Cus. dated 01.06.2011, subject to fulfilment of the conditions prescribed therein. 3.5.9 Accordingly, the Applicant has prayed that the Authority may pass its ruling on the following questions: (a) W....
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.... 8. Additional Submissions by the Applicant 8.1 Subsequent to the personal hearing held on 20.08.2026, during which a query was raised regarding the precise process of roasting and the moisture content of the subject Roasted Areca Nuts, the Applicant submitted additional written submissions in this regard. 8.1.1 The Applicant requested that, after sub-paragraphs 1 and 5 of Para B(c) of Annexure-II | Grounds| to the application, sub-paragraphs 1.1 and 6 be treated as additional submissions explaining the process of roasting of the subject nuts. The relevant submissions of the Applicant are reproduced below: "1.1. Drying of freshly dehusked raw betel/Areca Nut is thereby subjected dry or boiled dry to get it stabilised, say for 3 hours, before feeding the same into the Roasting Oven." "6. As per the requirement of the Indian market and our customer demand, we bring the moisture content down by continuing roasting at a controlled temperature of 90℃ for another twelve hours till the moisture content comes to 6%. 8.1.2 The prolonged roasting is done diligently at controlled temperature to avoid charring, i.e. to prevent the nuts from burning, blackeni....
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....lassifiable under CTI 2008 19 91 and whether the benefit of S1. No. 172 of Notification No. 46/2011-Cus. dated 01.06.2011 is applicable when imported from Myanmar, Indonesia, Thailand and Cambodia? 2. Whether Oven Roasted Pistachios are classifiable under CTI 2008 19 91 and whether the benefit of SI. No. 172 of Notification No. 46/2011-Cus. dated 01.06.2011 is applicable when imported from Thailand, Malaysia and Vietnam? 3. Whether Oven Roasted Almonds are classifiable under CTI 2008 19 91 and whether the benefit of SI. No. 172 of Notification No. 46/2011-Cus. dated 01.06.2011 is applicable when imported from Thailand, Malaysia and Vietnam? 4. Whether Oven Roasted Cashew Nuts are classifiable under CTI 2008 19 10 and whether the benefit of SI. No. 172 of Notification No. 46/2011-Cus. dated 01.06.2011 is applicable when imported from Vietnam, Thailand, Cambodia and Malaysia? 9.3 At the outset, I find that the questions raised in Form CAAR-1 relate to determination of classification of the subject goods and the applicability of a notification issued under the Customs Act, 1962 having a bearing on the rate of duty. Accordingly, the questions fall within t....
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....ard to the judicial pronouncements already rendered on the same classification issue and the absence of any materially distinguishing facts in the present application, I am of the view that a fresh ruling on the classification of Roasted Areca Nuts is not warranted. 9.5.5 Accordingly, for the reasons recorded above and in view of the provisions of Section 28-1(2)(b) of the Customs Act, 1962, no ruling is pronounced on the question relating to classification of Roasted Areca Nuts in the present application. 9.6 Roasted Cashew Nuts, Roasted Almonds and Roasted Pistachios 9.6.1 As regards Roasted Cashew Nuts, Roasted Almonds and Roasted Pistachios (hereinafter collectively referred to as "the subject roasted nuts"), I find from the submissions and material placed on record that the subject goods are described as "roasted" and are stated to undergo a roasting process. The Applicant has submitted that the oven is preheated to 350ºF, after which the subject nuts are placed in a single layer and roasted for 10-15 minutes. Thus, the Applicant has furnished particulars regarding the temperature and duration of the heating process. However, the Applicant has not furnished compr....
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....cation shall be determined according to the terms of the headings and any relevant Section or Chapter Notes and, provided such headings or Notes do not otherwise require, according to the remaining Rules of the GRI. The Section Notes and Chapter Notes therefore form an integral part of the statutory tariff scheme and are required to be considered while determining the appropriate classification. 9.6.5 The principle that a specific tariff entry is to be preferred over a general or residuary entry is also well settled. In Commissioner of Central Excise v. Wockhardt Life Sciences Ltd., 2012 (277) E.L.T. 299 (S.C.), the Hon'ble Supreme Court held that a residuary entry can be resorted to only in the absence of a specific entry covering the goods. Similarly, in Western India Plywoods Lid. v. Collector of Customs, Cochin, 2005 (188).E.L.T. 365 (S.C.), the Hon'ble Supreme Court held that resort to a residuary entry is to be made with, extreme caution and only when no other provision expressly or by necessary implication applies to the goods. Accordingly, where the tariff specifically provides for the goods, classification under a general or residuary entry is not warranted. ....
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....F for 10-15 minutes. I find that the disclosed process involves application of heat to the nuts at a specified temperature for a specified duration and is consistent with the ordinary understanding of the term "roasting". In the absence of any material on record to indicate that the process is merely a drying operation, the subject goods are appropriately considered as roasted nuts for the purpose of classification. 9.6.10 In respect of Oven Roasted Almonds and Oven Roasted Pistachios, there being no separate specific tariff entry for these goods, they are appropriately classifiable under CTI 2008 19 91 - Other roasted nuts and seeds, in accordance with Rule 1 of the GRI and the terms of Heading 2008 and the relevant tariff sub-heading. 9.6.11 In respect of Oven Roasted Cashew Nuts, the Customs Tariff contains a specific tariff item, namely CTI 2008 19 10 - Cashew nut, roasted, salted or roasted and salted. Accordingly, applying Rule 1 of the GRI and the principle that a specific tariff entry takes precedence over a general entry, Oven Roasted Cashew Nuts merit classification under CTI 2008 19 10. 10. Applicability of Notification No. 46/2011-Cus. 10.1 The Applicant has....