EXCELLENT BETELNUT PRODUCTS PVT. LTD. Vs. THE COMMISSIONER OF CUTOMS (PORT-IMPORT)
LAWS(AR)-2015-8-1
AUTHORITY FOR ADVANCE RULINGS
Decided on August 07,2015

Excellent Betelnut Products Pvt. Ltd. Appellant
VERSUS
The Commissioner Of Cutoms (Port -Import) Respondents

JUDGEMENT

V.S. Sirpurkar, J. (Chairman) - (1.) IN this application, the applicant has sought a query in a peculiar language which is as under: - - "whether the goods sought to be imported is processed betel nut as described therein above whether or not containing ingredients such as food starch, spices, mulethi, flavors, perfume etc., though not containing lime or katha (catechu) or tobacco, and will the resultant products be classifiable under the Chapter/Heading 21069030 -
(2.) THE applicant who is in the betel nut business claims that he is currently engaged in the import and trading of dry fruits, spices, nuts, organic foods etc. The applicant thereafter maintains that he intends to import various types of betel nuts and wishes to market the same. The applicant proposes to import (i) API supari, (ii) Chikni supari, (iii) Unflavored supari; and (iv) Flavored supari. The applicant accepts that the principal raw material used by the foreign manufacturer is raw betel nut. However, his claim is that it does not fall under chapter 8 and more specifically in Heading 08029000. He has given the manufacturing process of the 4 products which he intends to import is as under: - - "(i) API Supari : following processes are conducted on raw green fresh Betel Nut : Removing of Large impurities by Labor, Boiling in water for 6 hrs., 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 Labor, Slicing in small pieces, Boiling in water for 6 hrs., Mixing Food Starch, Drying, Polishing and Packing. (iii) Unflavored Supari : following processes are conducted on raw dried Betel Nut : Removing of Large Impurities by Labor, Removing of small impurities by de - stoner, Metal Deflection (Removal of metal item, if any), Garbling, Polishing in Polishing Machine, 3 stage cutting, blowing of weightless particles in blower, Gravity separation by Automatic Gravity Separation Machine, Roasting in Fire Gas Rotary Roaster, Metal Detection by Magnetic Metal Detectors and Packaging. (iv) Flavored Supari : following processes are conducted on raw dried Betel Nut : Removing of Large Impurities by Labor, Removing of small impurities by de -stoner, Metal Deflection (Removal of metal item, if any), Garbling in Automatic Garblers, Polishing in Polishing Machine, Sterilization to remove bacterial count, 3 stage cutting blowing of weightless particles in blower, Gravity separation by Automatic Gravity Separation Machine, Roasting in Fire Gas Rotary Roaster, Flavoring in large size Automatic blenders with compound, Metal Deflection by Magnetic Metal Deflectors, Sterilizing to kill bacteria count increased due to handling in processing and packaging. Then Flavors such as flavoring materials like Spices/or Mulethi etc., are mixed in Automatic Blenders with outsourced Liquid flavors such as perfumes etc. in Mega size Automatic blenders with compound." It is the case of the applicant that all the four products which he intends to import can only amount to a preparation.
(3.) AS against this, according to the Revenue, the aforementioned 4 products would be neatly covered in Chapter 8 of the Customs Tariff.;


Click here to view full judgement.
Copyright © Regent Computronics Pvt.Ltd.