9911796707
TMI Blog2021 (5) TMI 1078X X X X Extracts X X X X X X X X Extracts X X X X ..... cretariat of CAAR, New Delhi on 01,03,2021. The application was accordingly registered under serial No. 01/2021-Delhi dated 01,03,2021 3. On registration. of the application, the concerned Principal Commissioners/Commissioner of Custom were requested vide letter dated 05.03.2021 to furnish their comments, in the matter. However, comments of the concerned Principal Commissioners/Commissioner have not been received in response to this-specific application. 4. In accordance with the procedure prescribed under the CAAR Regulations, 2021, personal hearing was scheduled on 27.04.2021. However, counsel of the applicant requested for another date of hearing in view of the prevailing lock down in the city due to Corona pandemic. Keeping in view the statutory provisions under section 28-1 of the Customs Act. 1962 that *require ruling to be pronounced within three months of the filing of the application, next date of personal hearing was, fixed on 2.5.05.2021 in virtual mode, keeping in view the circumstances prevailing-on account of COVID pandemic. Representing the applicant; Ms. Monika Sharma, Advocate, attended the hearing in virtual mode on the said date. During the hearing, the learned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... blowing of weightless particles in blowers, gravity separation by automatic gravity separation machine, roasting in fire gas rotary roaster, flavoring in large size automatic blenders with flavouring materials like spices/or mulethi etc., are mixed in automatic blenders with outsourced liquid flavours such as perfumes etc., Sterilizing to kill bacteria count increased due to handling in processing and packaging. (v) 'Boiled Supari'; Following processes are conducted on raw green fresh whole or split (half) betel nut: removing of large impurities by labourers, boiling in water for upto 4 hrs, removing the husk, boiling again for 2 hours, drying by hot air, sterilizing, shorting, polishing and packaging. After mentioning above details and processes involved in making of various type of Supari, the question on which advance ruling has been sought is, "Whether the goods sought to be imported i.e. preparation/product of betel nut commonly known as 'Supari ' as described above which does not contain lime or katha (catechu) or tobacco but may or may not contain any other ingredients such as food starch, cardamom, copra, mulethi, menthol (flavours), perfume ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s 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 orpotassium sorbate); b. To improve or maintain their appearance (Ibr example, by the addition "vegetable oil or small quantities of glucose syrup) provided that they retain the character of dried fruit or dried nuts. 10. In the Chapter 8, areca nuts, whole, split. ground, and two residuary sub-headings are accommodated under 08028010, 20, 30, 9(), and 08029000, respectively. 11.1 On the other hand, Chapter 21 covers miscellaneous edible preparations. The relevant Supplementary Note 2 to the said Chapter lays down that, 'In this Chapter "betel nut product known as Supari " means any preparation containing betel nuts, bur not containing any one or more of the .following ingredients, namely: lime, katha (catechu) and lobacco whether or not containing any other ingredients. such as cardamom, copra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... supporting arguments for classification of the four goods under Chapter 21 as preparations of betel nuts, precedence of erstwhile AAR in support of the said classification, I summarize the contending positions on the question posed for advance ruling. 15. Advance ruling has been sought on classification of five different goods, each known as "supari" in common trade parlance, albeit with differentiator. viz. API, Chikni, unflavoured, flavoured and Boiled. The basic raw material for each of the five 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 masticatory. however, these items have been subjected to certain processes and added with certain materials, resulting in the question being posed whether the said processes and mixing/addition of certain materials are substantive enough to lead to the said five goods be considered as "preparation of betel nut" that would make them classifiable under Chapter 21 by virtue of Supplementary note 2 of Chapter 2 J. It is the contention of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ditives 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 generally, in view of the design of the Schedule to the CTA, HSN and plethora of judgements, besides common understanding and parlance, every irreversible process docs 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, unflavoured supari and boiled 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. 18. In the case of flavoured supari, the question to be answered is whether the addition of special flavouring agents would render the betel nuts into ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
