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TMI Blog2023 (3) TMI 80X X X X Extracts X X X X X X X X Extracts X X X X ..... as Supari is identical to the definition of Betel nut powder known as Supari . It is clear from a plain reading of the judgment in Crane Betel Nut Powder Works v. Commissioner of Customs and Excise, Tirupathi Anr., that the Supreme Court was of the view that the product in question, sweetened betel nut powder, did not fall within the definition of Betel nut powder known as Supari - Accordingly, the Supreme Court held that the product in question is covered by sub-heading 0801 00 under Chapter 8 of the First Schedule of the Central Excise Tariff Act, 1985. The Supreme Court s view that the products in question did not fall within the classification under Chapter 21 but under Chapter 8 of the First Schedule to the Central Excise Tariff Act, 1985 would squarely cover the controversy in this case as well. Given the definition of the sub-heading Betel nut product known as Supari , read in the context of the main title of Chapter 21 and sub-heading 0802 read in the context with the title of Chapter 8 of the Customs Tariff ( Edible fruits and nuts; peel of citrus fruit or melons ); it would not be apposite to classify the products in question as those covered under Chapter 21 of the Cust ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s in question were classifiable under heading 0802 and not under sub-heading 2106 90 30 as contended by M/s Great Nuts Impex Pvt. Ltd. 4. M/s The Nuts Co. (Appellant in CUSSA 18/2022) had also filed a similar application before the CAAR proposing to import goods similar to those as proposed to be imported by M/s Great Nuts Impex Pvt. Ltd. in its application. M/s The Nuts Co. also sought a ruling on the question, which was identically worded as the question framed by M/s Great Nuts Impex Pvt. Ltd. in its application. M/s Great Nuts Impex Pvt. Ltd. and M/s The Nuts Co. are hereafter, for the sake of brevity, collectively referred to as 'the appellants'. 5. The said application filed by M/s The Nuts Co. also met the same fate as the application of M/s Great Nuts Impex Pvt. Ltd. and was disposed of by a ruling dated 04.06.2021 (Ruling No. CAAR/DEL/The Nut/10/2021), in similar terms as the ruling dated 20.05.2021. The CAAR, inter alia, relied upon the decision of Crane Betel Nut Powder Works v. Commissioner of Customs and Excise, Tirupathi & Anr.: 2007 (210) E.L.T. 171 to hold that the products in question, merit classification under Chapter 8 of the Customs Tariff. 6. The rulings da ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the two competing entries. Chapter 8 of the Customs Tariff covers goods described as "Edible fruit and nuts; peel of citrus fruit or melons". The relevant Tariff Item 0802 is set out below: "0802 Other nuts, fresh or dried, whether or not shelled or peeled 0802 11 00 - Almonds : 0802 12 00 -- In shell …….. 0802 21 00 -- Shelled …….. 0802 22 00 - Hazalnuts or filberts (Corylus spp.) : 0802 31 00 -- In shell …….. 0802 32 00 -- Shelled …….. 0802 41 00 - Chestnuts (Castanea spp.) : 0802 42 00 -- In shell …….. 0802 51 00 -- Shelled …….. 0802 52 00 Pistachios : 0802 61 00 -- In shell …….. 0802 62 00 -- Shelled …….. 0802 70 00 - Macadamia nuts : 0802 80 -- In shell …….. 0802 80 10 -- Shelled …….. 0802 80 20 -- Kola nuts (Cola spp.) …….. 0802 80 30 - Areca nuts : 0802 80 90 --- Whole …….. 0802 90 00 --- Split. …….. 9. Chapter 21 of the Customs Tariff covers goods under the heading "Miscellaneous Edible preparations". The relevant Tariff Item is quoted below: "2106 Food ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nut product known as 'Supari'". He also referred to an earlier decision of the Authority for Advance Ruling (AAR) in Re: Excellent Betel Nut Products Pvt. Ltd.: (2015) 324 E.L.T. 619 (A.A.R.) and, on the strength of the said decision, submitted that the product proposed to be imported would fall within the Tariff heading 2106 90 30 - "Betel nut product known as 'Supari'". He also pointed out that the learned AAR had clarified that the decision of the Supreme Court in Crane Betel Nut Powder Works v. Commissioner of Customs and Excise, Tirupathi & Anr. (supra) was not applicable for considering the classification of import of goods in question as the said decision was in respect of the Central Excise Act, 1944 and the question whether changes brought about in betel nut amounted to manufacture. The learned AAR had also noticed that there was a material change in the relevant Tariff heading in the First Schedule to the Central Excise Tariff Act, 1944, expressly providing that the process of adding or mixing cardamom, copra, menthol, spices, sweetening agents or any such ingredients other than lime, katha (catechu) or tobacco to betel nut would amount to manufacture. Reasons and Concl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Customs Tariff - "Betel nut product known as 'Supari'" - is different. However, the difference in the language of sub-heading 2107 00 of the First Schedule to the Central Excise Tariff Act, 1985 [which was considered in Crane Betel Nut Powder Works v. Commissioner of Customs and Excise, Tirupathi & Anr. (supra)] and sub-heading 2106 90 30 of the Customs Tariff, is not material. This is because both the expressions have been similarly defined by virtue of Note 4 to Chapter 21 of the First Schedule to the Central Excise Tariff Act, 1985 and Supplementary Note 2 to Chapter 21 of the Customs Tariff. 17. Supplementary Note 2 to Chapter 21 of the Customs Tariff reads as under:- "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." 18. The above Note is identically worded as Note 4 to Chapter 21 of the First Schedule to the Central Excise Tariff Act, 1985, which was considered by the Supreme Court in Crane Betel Nut Powder Works v. Commissioner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n and enhancing the appearance of presentation and thus, were covered under Note 3 of the Chapter 8 of the Customs Tariff. 24. Insofar as flavoured supari is concerned, the CAAR relied on the decision of the Supreme Court in Crane Betel Nut Powder Works v. Commissioner of Customs and Excise, Tirupathi & Anr. (supra) and held that the same would continue to be classified under Chapter 8 of the Customs Tariff. 25. We find no infirmity with the aforesaid view. As noted above, the decision in the case of Crane Betel Nut Powder Works v. Commissioner of Customs and Excise, Tirupathi & Anr. (supra) (supra) squarely covers the issue involved in the present cases. 26. Before concluding, we also consider it apposite to refer to Supplementary Note 2 of Chapter 21 of the Customs Tariff, which expressly provides that the goods covered under the sub-heading "Betel nut product known as 'Supari'" would mean "any preparation containing betel nuts". Thus, the goods covered under the said sub-heading would necessarily have to be a preparation that contains betel nuts as against the product being treated as betel nut. 27. Given the definition of the sub-heading "Betel nut product known as 'Supari' ..... X X X X Extracts X X X X X X X X Extracts X X X X
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