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TMI Blog2021 (5) TMI 1078X X X X Extracts X X X X X X X X Extracts X X X X ..... o consider the distinction arising out of moderate and heavy boiling. In this regard, it is also submitted in the application that with the process of boiling, betel nut loses the character of being fresh dried nut therefore the item will not be covered under Chapter 8. It is found in the instant case, betel nuts after being boiled are dried; and this fact per se would not exclude the end-products from the scope of dried nuts . 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 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 . The processes to which raw betel nuts have been subjected to obtain API supari, Chikni supari, unflavoured supari and boiled supari a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or Advance Rulings, New Delhi For the Applicant: Ms. Monika Sharma, Advocate For the Department; None Ruling M/s Cosmos international, a resident proprietorship firm having IEC No. 0507063 767, PAN AODPS4243N and GSTIN No. 07AODPS4243N2Z1 (M/s Cosmos. in short), has filed . an application dated 09,02.2021 seeking advance ruling under section 28-H of the Customs Act, 1962 before the Customs Authority for Advance Rulings, New Delhi (CAAR, in short). 2. On scrutiny of the application, Secretary, CAAR, New Delhi issued Deficiency Memo and requested the applicant to rectify the said deficiencies. Rectification of deficiency was completed by the applicant and rectified application was submitted vide letter dated 01.03.2021 of their counsel, Ms. Monika Sharma, which was received in the Secretariat 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 hav ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n raw dried betel nut: removing of large impurities by labourers, removing of small impurities by de-stoner, metal deflection (removal of metal item, if any), garbling, polishing in polishing machine, splitting in two (half) and/or more pieces, blowing of weightless particles in blowers, gravity separation by automatic gravity separation machine, drying/roasting in fire gas rotary roaster, metal detection by magnetic metal detectors and packaging. (iv) 'Flavoured Supari': Following processes are conducted on raw dried betel nut: removing of large impurities by labourers, removing ofsmall impurities by de-stoner, metal deflection (removal of metal item, if any), garbling in automatic garblers, polishing in polishing machine, splitting (halt) and/or 3 stage cutting, 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mely lime, katha (catechu) and tobacco whether or not containing any other ingredients such as cardamom, copra or menthol." They have also cited reference to ruling of the erstwhile AAR, New Delhi in the case of M/S Excellent Betelnut Products Pvt. Ltd, M/S Oliya Steel Private Limned, Kolkata and M/S Isha Exim. I will revert to these in my discussion later in the order. 8. 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 five goods, viz. sub-heading 21069030 and sub-heading 0802 80 90. Therefore, it would be useful to carefully consider the two competing tariff entries and the guidance relating thereto. 9. 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 orpotassium sorbate); b. To improve or maintain their appearance (I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the erstwhile AAR did not make any comment on the implications of the Chapter Note 3 to Chapter 8 on the processes that raw betel nuts were subjected to obtain the said four goods. Further, AAR was of the opinion that the decision Of the Hon'ble Supreme Court in the case of M/s. Crane Betel Nut Powder Works reported at 2007 (210) E.L.T. 1 71 (S.C.) has no application in the 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 ws Excellent Betelnut case. 14. Having gone through the advance ruling application, 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppearance or presentation, Addition of starch would be included under such process. I find that these processes are clearly covered by the Chapter Note 3 to Chapter 8. I also note that during the personal hearings the learned advocate requested to consider the distinction arising out of moderate and heavy boiling. In this regard, it is also submitted in the application that with the process of boiling, betel nut loses the character of being fresh & dried nut therefore the item will not be covered under Chapter 8. I find that in the instant case, betel nuts after being boiled are dried; and this fact per se would not exclude the end-products from the scope of "dried nuts". 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 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 o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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