2025 (3) TMI 396 - HC - Customs

Classification of roasted areca nuts (whole/cut/split) which the party intended to import - Prohibited goods or not - to be classified under Chapter 20 of Tariff 2008 1920 or not? - HELD THAT - 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 there are no reason to interfere with the impugned order. Appeal dismissed.

Summary

The Madras High Court issued a judgment concerning the classification of imported areca nuts as either raw or roasted, and the subsequent implications on customs duty and penalties. The key issues considered in the judgment were whether the Court should determine the nature of the imported areca nuts under Article 226 of the Constitution of India and whether the imported areca nuts were actually roasted or raw.The Court examined the facts where the respondents imported goods declared as roasted areca nuts from Indonesia, while the appellant revenue contended that the goods were raw areca nuts. Both raw and roasted areca nuts are permissible for import, with different minimum pricing requirements. The importers sought advance rulings on the classification of the goods as roasted areca nuts.Two rulings were referenced in the judgment: one regarding the moisture content of the imported goods and another regarding the testing process for roasted areca nuts. The Court noted that the moisture content of the imported goods was below 10% based on various test reports, which was crucial in determining the classification of the areca nuts. The Court also highlighted that there was no specific definition of roasted areca nuts.The Court considered the finality of the rulings by the Authority for Advance Rulings, which established that moisture content between 10% and 15% would classify the nuts as raw, while anything below 10% would be considered roasted. Since all laboratory reports indicated moisture content below 10%, the Court upheld the lower court's decision to quash the orders-in-original by the Customs Authority.In conclusion, the Court dismissed the appeals, allowing clearance of the goods and indicating that the Revenue might challenge the judgment in the Supreme Court. The importers were permitted clearance against a personal bond for any potential duty discrepancies. The judgment emphasized the importance of moisture content in determining the classification of areca nuts and upheld the lower court's decision based on the finality of the Authority for Advance Rulings' findings.