The appeals have been filed under Section 28KA of the Customs Act, 1962 involving a common question regarding the classification of “Boiled Supari” under the Customs Tariff Act, 1975.
M/s Great Nuts Impex Pvt Ltd, the appellant had filed an application before the Customs Authority of Advanced Ruling (‘CAAR’) seeking an advance ruling under Section 28H of the Customs Act regarding classification of the goods proposed to be imported. M/s Great Nuts Impex Pvt Ltd. proposed to import into India a preparation of Betel Nuts known as ‘Boiled Supari’ packed in consumer packing and bulk packing.
According to the petitioner, the said goods were not classifiable under Chapter 8 of the Customs Tariff as Areca nuts (heading 0802 80). Later the Customs Appellate Authority of Advanced Ruling (CAAR) found that the goods 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.
The CAAR had also referred to the Guidelines to Chapter 8 of the Harmonized Commodity Description and the Coding System of the World’s Customs Organization, which provided that fruit and nuts of this Chapter may be whole, sliced, chopped, shredded, stoned, pulped, grated, peeled or shelled and that the addition of small quantities of sugar would not affect the classification of fruit.
A Division Bench comprising of Justices Vibhu Bakhru and Amit Mahajan observed that “Given the definition of the sub-heading “Betel nut product known as ‘Supari’”, read in the context of the main title of Chapter 21 d 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”); we are of the view that it would not be apposite to classify the products in question as those covered under Chapter 21 of the Customs Tariff.”
The Bench also noted that 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. and held that the same would continue to be classified under Chapter 8 of the Customs Tariff.
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