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TMI Blog2021 (10) TMI 1397X X X X Extracts X X X X X X X X Extracts X X X X ..... ption per se does not result in obtaining a preparation of betel nut. The processes to which raw betel nuts have been subjected to obtain API supari, Chikni supari, unflavored supari, boiled supari and boiled cut supari are squarely in the nature of processes referred to in the Chapter Note 3 to Chapter 8 and HSN Note. Therefore, at the end of the said processes, the betel nuts retain the character of betel nut and do not qualify to be considered as preparations of betel nut, which is sine qua non for a good to be classifiable under Chapter 21. Flavored supari - whether the addition of special flavoring agents would render the betel nuts into preparations of betel nuts, classifiable under Chapter 21? - HELD THAT:- The judgment of the Hon'ble Supreme Court of India in the case of CRANE BETEL NUT POWDER WORKS VERSUS COMMR. OF CUS. C. EX., TIRUPATHI [ 2007 (3) TMI 6 - SUPREME COURT] has held that the process of cutting betel nuts into small pieces and addition of essential/non-essential oils, menthol, sweetening agent etc. did not result in a new and distinct product having a different character and use - Put simply, this decisions clearly imply that addition of fl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he earlier rulings of the erstwhile AAR and claimed that import of these products was being allowed under Chapter 21 at some Customs formations in respect of atleast few importers. The Authority explained the legal framework of advance rulings including scope of Section 28J of the Customs Act, and cited reference to his own rulings on the same question of classification of betel nut products, wherein it has been ruled that the same are classifiable under Chapter 8, even as the preferability of consistency in classification was recognized. 3. The applicant, vide the aforesaid application, has sought ruling by CAAR, New Delhi on the question of classification of six items, the details of which are summarized as under: (i) API Supari' : Following processes are conducted on raw green fresh betel nut: removing of large impurities by labour, boiling in water for 6 hours, mixing food starch, drying, polishing and packaging. (ii) Chikni Supari' : Following processes are conducted on raw green fresh betel nut. Removing of large impurities by labour, slicing in small pieces, boiling in water for 6 hours, mixing food starch, drying, polishing and packaging. (iii) Unflav ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he said Supplementary Note: 2: In this chapter Betel Nut product known as Supari means any preparation containing betel nuts but not containing any one or more of the following ingredients, namely lime, katha (catechu) and tobacco whether or not containing any other ingredients such as cardamom, copra or menthol. Thus, according to the applicant, the final products to be imported being processed betel nut product, not containing lime, katha or tobacco, by virtue of aforesaid chapter note are specifically classifiable under Chapter 21. 5. After mentioning above details and processes involved in making of various types of Supari, the question on which advance ruling has been sought is, The goods sought to be imported namely 'API Unflavored Supari', Chikni Supari', 'Flavored Supari', Supari', Boiled Supari' and Boiled Cut Supari' being processed Betel Nut products which do not contain lime, katha and tobacco but containing other flavoring materials/additives such as food starch, spices, mulethi, flavors, essence (food grade) etc. are classifiable under the CTH 2106 90 30 of the First Schedule to the Customs Tariff Act, 1975. 6. I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... later in this ruling. 9. On the basis of the submissions of the applicant, along with the cited reference to the ruling of the erstwhile AAR, there are two contending entries in the CTH for the aforesaid six goods, viz. sub-heading 2106 90 30 and sub-heading 0802 80 90. Therefore, would be useful to carefully Consider the two competing tariff entries and the guidance relating thereto. 9.1 Chapter 8. which covers Edible fruit and nuts: peel of citrus fruit or melons includes, inter alia, the following Note 3: - 3. Dried fruits or dried nuts of this Chapter may be partially rehydrated, or treated for the following purposes: a. For additional preservation or stabilization for example, by moderate heat treatment, sulphuring. the addition of sorbic acid or potassium sorbate) . b. To improve or maintain their appearance (for example, by the addition of vegetable oil or small quantities of ghucose syrup), provided that they retain the character of dried fruit or dried nuts. In the Chapter 8, areca nuts, whole, split, ground, and two residuary sub-headings are accommodated under 0802 8010, 20, 30, 90, and 0802 9000, respectively. 9.2 On the other hand, Chapter 21 cover ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e facts of the cases before them. It is my considered opinion that in order to arrive at the appropriate classification of the said four goods, all originating from common source viz. raw green fresh betel nut, a more comprehensive view needs to be taken than in the aforesaid M/s Excellent Betelnut case, as has been done by AAR, Mumbai in the case of M/s. Samreen International Pvt. Ltd. (Ruling No. CAAR/Mum/ARCI3/202I dated 15th of March, 2021) and this Authority in the case of M/s Dry Nut Enterprises (Ruling No. CAAR/Del/Dry Nut/01/2021 dated 16th March, 2021). 12. In view of the above, I now summarize the contending positions on the question posed for advance ruling. Advance ruling has been sought on classification of six different goods, each known as supari in common trade parlance, albeit with differentiator, viz. API, Chikni unflavored, flavored, boiled and boiled cut. The basic raw material for each of the six goods is raw betel nut, which is classifiable under Chapter 8, more specifically sub-heading 080280. I also note that Chapter 8 covers only edible nuts; inedible nuts and fruits being excluded by virtue of Chapter Note 1; and that betel nut/supari are masticator ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Further, it is equally obvious to me that boiling or mere addition of certain additives for the limited purpose of enhancing preservation or appearance or ease of consumption per se does not result in obtaining a preparation of betel nut. Speaking more Benerally, in view of the design of the Schedule to the CTA, HSN and plethora ofjudgements, besides common understanding and parlance, every irreversible process does not result in obtaining a new product with a distinct classification even at the eight or ten-digit level; and every irreversible process does not result in coming into being of a preparation of the raw material . Therefore, I conclude that the processes to which raw betel nuts have been subjected to obtain API supari, Chikni supari, unflavored supari, boiled supari and boiled cut supari are squarely in the nature of processes referred to in the Chapter Note 3 to Chapter 8 and HSN Note. Therefore, at the end of the said processes, the betel nuts retain the character of betel nut and do not qualify to be considered as preparations of betel nut, which is sine qua non for a good to be classifiable under Chapter 21. 15. In the case of flavored supari, the question t ..... 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