2025(06)LCX0397(AAR)

Harnath Stock Huts

decided on 16-06-2025

Customs Authority for Advance Rulings 

New Custom House, Ballard Estate, Mumbai - 400 001

E-MAIL: cus-advrulings.mum@gov.in

N.B. :

1. A copy of this order made under sub-section (2) of Section 28-1 of the Customs Act, 1962 . is granted to the concerned free of charge.

2. Any appeal against this Advance Ruling order shall lie before the jurisdictional High Court of concerned jurisdiction, within 60 days from the date of the communication of such ruling or order.

3. The advance ruling pronounced by the Authority under Section 28 - I shall remain valid for three years or till there is a change in law or facts on the basis of which the advance ruling has been pronounced, whichever is earlier.

4. Where the Authority finds that the advance ruling was obtained by the applicant by fraud or misrepresentation of facts, the same shall be declared void ab initio

Advance Ruling

M/s. Hamath Stock Huts (IEC No. AVCPH8309L) (hereinafter referred as ''Applicant'') filed an application for advance ruling in the Office of Secretary, Customs Authority for Advance Ruling, Mumbai. The said application was received in the secretariat of the CAAR, Mumbai on 19.12.2024, along with its enclosures in terms of Section 28H (I) of the Customs Act, 1962 (hereinafter referred to as the 'Act'). The applicant is seeking advance ruling regarding classification of Roasted Areca nuts (Whole/Split/Cut), Roasted and/or Salted Cashew nuts and Menthol Scented Sweet Supari for imports through the ports of Chennai, Tuticorin and JNCH, Nhava-Sheva.

1. Submission by the Applicant:

1.1 The applicant is a proprietorship involved in the business of trading. The applicant is also registered under the GST bearing registration no. 33AVCPH8309L1ZJ. The applicant is intending to import the following goods through the above-mentioned ports:

a) Oven roasted Areca nuts from Burma, Indonesia, Sri Lanka and Thailand,

b) Oven roasted and salted cashew nuts from Vietnam, Thailand and Malaysia.

c) Menthol Scented Sweet Supari from Burma, Indonesia, Sri Lanka and Thailand

1.2 The applicant is of the view that the subject goods are classifiable under CTH 2008 19 20, CTH 2008 19 10 and 2106 90 30 respectively. The applicant is intending to claim the benefit of the List 5 of Notification No.26/2000-Cus dated 01.03.2000 and SI. No. 172 of Notification No. 46/2011-Cus dated 01.06.2011 for import of roasted Areca nuts and benefit of the SI. No. 172 of Notification No. 46/2011-Cus dated 01.06.2011 for import of roasted and salted cashew nuts.

1.3 The applicant is of the bonafide belief that the subject goods are rightly classifiable under 2008 19. Therefore, the present application is being filed to ascertain the correct classification for the roasted Areca nuts, under CTH 2008 19 20 and eligibility of the List 5 of Notification No.26/2000-Cus dated 01.03.2000 and SI. No. 172 of Notification No. 46/2011-Cus dated 01.06.2011 for import of roasted Areca nuts. Also, to ascertain the correct classification for the roasted cashew, under CTH 2008 19 20 and eligibility of the SI. No. 172 of Notification No. 46/2011-Cus dated 01.06.2011 for import of roasted and salted cashew nuts. Also, to ascertain the correct classification for the Menthol Scented Sweet Supari, CTH 2106 90 30

GROUNDS

A. The applicant intends to import of Oven roasted Areca nuts from Burma, Indonesia, Sri Lanka and Thailand and Oven roasted and salted cashew nuts from Vietnam, Thailand and Malaysia and Menthol Scented Sweet Supari from Burma, Indonesia, Sri Lanka and Thailand

OVEN ROASTED ARECA NUTS TO BE IMPORTED FROM BURMA, INDONESIA, SRI LANKA AND THAILAND

B. As per the applicant, the process of'roasting' is neither defined in the Customs Tariff nor in the HSN Explanatory/Sections/Chapters Note. It is submitted that the processes carried out on the imputed goods as follows:

(1) De-husking the raw betel/areca nuts and drying the same before being fed into the roasting oven;

(2) Feeding the fresh areca nuts into a seed roasting oven, heating up to 100 deg. C and roasting the fresh areca nuts in an oven of the seed roasting machine;

(3) Take the areca nuts out of the oven, cooling at room temperature and feeding back into the oven, heat and roast them again, and perform this cycle until the water content of the fresh areca nuts is 10 to 15 per cent; and

(4) The fresh areca nuts are repeatedly heated, roasted and cooled to ensure that the areca nuts are quickly cooled and shrunk after thermal expansion so that the roasted areca nuts have higher quality; the roasting time is around 2-3 days.

C. As per the applicant, the roasted Areca Nuts are specifically covered and are classifiable under CTH 2008 19 20 of the Customs Tariff Act, 1975. As per the HSN Explanatory Notes to Heading 2008, Dry Roasted Areca (or Betel) Nuts are specifically covered under Chapter Heading 2008. Reference is made to the case laws of L.M.L. Ltd. v. Commissioner of Customs reported in 2010 (258) E.L.T 321 (S.C), Holostick India Ltd. v. Commissioner of Central Excise, Noida reported in 2015 (318) E.L.T 529, Collector of Central Excise, Shillong v. Wood Craft Products Ltd reported in 1995 (77) E.L.T 23 (S.C.) to submit that the HSN Explanatory Note is the safe and dependable guide in the matters of classification of items. In the case of Collector of Customs, Bombay v. Business Forms Ltd reported 2002 (142) ELT 18 (S.C.), the Hon'ble court held that Explanatory Notes to HSN need to be given due consideration for classifying goods.

D. As per the explanatory note to Chapter 8 fruit and nuts of this Chapter remain classified here even if put up in airtight packing (e.g., dried prunes, dried nuts in cans). In most cases, however, products put up in these packing have been prepared or preserved otherwise than as provided for in the headings of this Chapter, and are therefore excluded from chapter 8 (and will fall under Chapter 20). The applicant states that as the processes mentioned in Chapter 8 are different from the processes performed on impugned goods, they are excluded for the purpose of classification from Chapter 8 of the Customs Tariff Act, 1975. As per the HSN Explanatory Notes to Heading 2008, given below, Dry Roasted Areca (or Betel) Nuts are specifically covered under Chapter Heading 2008.

E. As per Note 2 to Chapter 21 of the Customs Tariff Act, 1975, ''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, Kama (catechu) and tobacco whether or not containing any other ingredients, such as cardamom, copra or menthol. As per the Explanatory Note, the heading covers preparations for use, either directly or after processing (such as cooking, dissolving or boiling in water, milk, etc.), for human consumption. As per the applicant, the goods have undergone roasting, but they don't contain lime, Katha (catechu) and tobacco. Further, roasted betel nuts can be consumed directly by merely cutting them into pieces. Therefore, the goods are equally classifiable under Chapter 21 of the Customs Tariff Act, 1975.

F. Chapter 8 covers fruit, nuts and peel of citrus fruit or melons (including watermelons), generally intended for human consumption (whether as presented or after processing). As per HSN explanatory notes these goods may be fresh (including chilled), frozen (whether or not previously cooked by steaming or boiling in water or containing added sweetening matter) or dried (including dehydrated, evaporated or freeze-dried): provided they are unsuitable for immediate consumption in that state, they may be provisionally preserved (e.g., by sulphur dioxide gas, in brine, in sulphur water or in other preservative solutions). The note specifies the physical status of the goods along with corresponding processes that could be carried on those goods under this chapter. Note 3 to Chapter 8 further states that Dried fruit or dried nuts of this Chapter may be partially rehydrated, or treated for the following purposes:

(a) for additional preservation or stabilisation (for example, by moderate heat treatment, sulphuring, the addition of sorbic acid or potassium sorbate);

(b) to improve or maintain their appearance (for example, by the addition of vegetable oil or small quantities of glucose syrup), provided that they retain the character of dried fruit or dried nuts.

G. The areca/betel nut is mentioned in Heading 0802, specifically under sub-heading 080280. The explanatory note to Heading 0802 states that this heading also covers areca (betel) nuts used chiefly as a masticatory. One of the main use of the goods under consideration is masticatory. Therefore, the subject goods satisfy this note. However, the process of roasting is not finding mention anywhere in this Explanatory Note.

H. The processes mentioned in Chapter 8 include chilling, steaming, boiling, drying and provisionally preserving. It does not specifically include the process of roasting. Here it is important to understand the difference between the processes of drying and roasting. The terms, however, are not defined in the Customs Tariff Act, 1975. Therefore, these terms have to be understood in a commonly accepted sense. The Hon'ble Apex Court in the case of Alladi Venkateswarlu v. Government of Andhra Pradesh reported 1978 AIR 945 held that ''the commonly accepted sense of a term should prevail in construing the description of an article of food''. In common trade parlance, ''drying'' is a method of food preservation by the removal of water. On the other hand, ''roasting'' means the excess or very high heat treatment that produces fundamental chemical and physical changes in the structure and composition of the goods, bringing about a charred physical appearance. Therefore, drying is a moisture removal process involving methods such as dehydration, evaporation, etc., whereas roasting is a severe heat treatment process.

I. The following CTH can be found to be specifically mentioned in the Tariff:-

CTH 2008: Fruits, nuts and other edible parts of plants, otherwise prepared or preserved, whether or not containing
added sugar or other sweetening matter or spirit, not elsewhere specified or included

- Nuts, ground nuts and other seeds, whether or not mixed together:

2008 19 20 — Other roasted nuts and seeds.

While examining the scope of CTH 2008 it is found that as per HSN Explanatory Notes, heading 2008 covers fruit, nuts and other edible parts of plants, whether whole, in pieces or crushed, including mixtures thereof, prepared or preserved otherwise than by any of the processes specified in other Chapters or in the preceding headings of this Chapter. Specifying what is included in this heading, the explanatory note states that Almonds, ground nuts, areca (or betel) nuts and other nuts, dry-roasted, oil-roasted or fat-roasted, whether or not containing or coated with vegetable oil, salt, flavours, spices or other additives. From the forgoing it can be seen that the subject goods i.e. find specific reference in the chapter 20 of the schedule I of the Customs Tariff Act, 1975 as well as corresponding HSN Explanatory Note. It is important to pay attention to the fact that in the above explanatory note a process of roasting is not specifically mentioned as a process of preservation or stabilization or a process to improve or maintain the appearance.

J. It is submitted that on various online marketplaces like https://www.amazon.in/, https://indiamart.com, https://flipkart.com etc. roasted betel nuts as products are sold. This clearly indicates that the goods have both buyers and sellers and that they are known in the trade and sold in the market as roasted betel nuts. Therefore, assuming without admitting, even if the term is not defined in the statute, the product has to be understood and recognised in terms of common trade parlance. It is a well-settled principle that words in a taxing statute must be construed in consonance with their commonly accepted meaning in the trade and their popular meaning. Hon'ble Apex Court in the matter of M/s. United Offset Process Pvt. Ltd. v. Asstt. Collector of Customs, Bombay and Others reported in 1988 (38) ELT 568 (SC), ''If there is no meaning attributed to the expressions used in the particular enacted statute then the items in the customs entries should be judged and analysed on the basis of how these expressions are used in the trade or industry or in the market or, in other words, how these are dealt with by the people who deal in them, provided that there is a market for these types of goods''.

K. Chapter 20 covers the preparation of nuts. One of the processes for preparing the impugned goods is specified in Heading 2008, i.e. roasting. Roasting is the essential process for the preparation of impugned goods. The subject goods under consideration are not excluded by any chapter note or explanatory note from Heading 2008. Therefore, it is evident that the subject goods are classifiable under Heading 2008 based on the terms of the Heading 2008 and Notes to Chapter 20.

L. Roasted Areca Nuts Import from Sri Lanka is subject to nil rate of Basic Customs Duty in terms of List 5 of Notification No.26/2000-Cus dated 01.03.2000. The said notification was issued by the Ministry of Finance, Government of India in pursuance of the Indo-Sri Lanka Free Trade Agreement (ISFTA). Roasted Areca Nuts Import from Thailand and Indonesia is eligible to avail the benefit of SI. No. 172 of Notification No. 46/2011-Cus dated 01.06.2011.

M. It is submitted that for identical products namely Roasted Areca Nuts, the Hon'ble Authority, Mumbai, vide Ruling Nos. CAAR/MUM/ARC/44, 45 & 46/2022 dated 07.12.2022 which has also been upheld by the Hon'ble High Court of Madras as reported in 2023 (386) E.L.T. 214 (Mad.), vide Ruling Nos. CAAR/Mum/ARC/39,40,41/2023 dated 12.05.2023 and vide Ruling No. CAAR/MUM/ARC/67/2022 dated 16.10.2023 had held that the product is classifiable under CTH 2008 19 20. The said ruling is applicable to the present case also, as the Roasted Areca Nuts are same to the product that was under consideration before the Hon'ble Authority in the above-mentioned Rulings.

OVEN ROASTED AND SALTED CASHEW NUTS IMPORTED FROM VIETNAM, THAILAND AND MALAYSIA

N. It is submitted that the process carried out on the imputed goods includes the following steps: Preheat the oven to 350 degrees, line a rimmed baking sheet with parchment paper or foil for easy cleanup, add cashews in a single layer, and roast for 10-15 minutes.

O. As per the applicant, the applicable subheading for roasted and salted cashew nuts will be CTH 2008 19 10, which provides for fruit, nuts and other edible parts of plants, otherwise prepared or preserved, whether or not containing added sugar or other sweetening matter or spirit, not elsewhere specified or included, nuts, peanuts (ground-nuts) and other seeds, whether or not mixed together, other, including mixtures, Brazil nuts and cashews, cashews. Roasted and salted cashew nuts Import from Vietnam, Thailand and Indonesia is eligible to avail the benefit of SI. No. 172 of Notification No. 46/2011-Cus dated 01.06.2011.

P. It is submitted that for identical products namely Roasted Cashews, the Hon'ble Authority under GST, Kerala , vide Ruling No. KER/112/2021 dated 26.05.2021, vide Ruling No. KER/113/2021 dated 26.05.2021 and vide Ruling No. KER/115/2021 dated 26.05.2021 had held that the product is classifiable under CTH 2008 19 10. The said ruling is applicable to the present case also, as the Roasted Cashews are same to the product that was under consideration before the Hon'ble Authority in the above-mentioned Rulings.

Q. It is submitted that for identical products namely Roasted Cashews, the United States Trade Ruling, vide Ruling No. NY G81459 dated 20.09.2000 and vide Ruling No. NY 183434 dated 22.07.2002 had held that the product is classifiable under CTH 2008 19 10.

MENTHOL SCENTED SWEET SUPARI TO BE IMPORTED FROM BURMA, INDONESIA, SRI LANKA AND THAILAND

R. The raw whole, split or ground betel nut (areca nut) provisionally preserved or not, as an agricultural product, is classifiable under CTH 0802. Arecoline is a mild parasympathomimetic stimulant alkaloid found in the areca nut, the fruit of the areca palm. It can bring a sense of enhanced alertness and energy, euphoria and relaxation. Chewing the nut stimulates the flow of saliva to aid digestion. In India there is a huge market of betel nut-based product sweet supari which is a sweet and flavoured preparation of crushed / cut betel nut with menthol, cardamon, sweetener, edible colours and usually packed in air-tight pouches. The product is sold across the retail counters and is used as a mouth freshener. Supplementary Notes, note no. 2 of Chapter 21 of the Customs Tariff reads as under: ''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''. The applicant submits that their case is that the products should ordinarily be covered under entry 21069030 which is ''Betel Nut Product known as Supari''.

S. Menthol/ Scented Sweet cutting supari (Nut based mouth freshener FSSAI category 5.2.4.1) The applicant submitted that they intend to import the product sweet supari in bulk. The imported product would be manufactured at shippers' overseas locations by following the processes such as:

a) Drying of Betel Nut,

b) Removing of large impurities by labour,

c) Removing of small impurities by de-stoner, metal deflection (removal of metal item, if any),

d) Garbling in automatic garblers,

e) Polishing in polishing machine,

f) Sterilization to remove bacterial count,

g) cutting,

h) blowing of weightless particles in blower,

i) Gravity separation by automatic gravity separation machine,

j) Roasting in fire gas rotary roaster,

k) Adding scents and flavours e.g., Menthol, Spices, sweetening agents etc. in desired quantities along with liquid flavours (as and if desired) and edible oil are mixed in automatic mega size Blenders, 1) Packaging in industrial packs of 50kg to 80kg as per requirement, m) This process does not contain any materials like Lime, Katha (catechu) and tobacco.

T. Also, in terms of the indicated additives like sweeteners, flavours and menthol, the product is classifiable under 2106.90.30 in terms of Supplementary Note 5(b) to Chapter 21 which reads as 5. Heading 2106 (except tariff items 2106 90 20 and 2106 90 30), inter alia, includes: (b) preparations for use, either directly or after processing (such as cooking, dissolving or boiling in water, milk or other liquids), for human consumption; Indian buyers of the applicant as industrial manufacturers of branded sweet supari may or may not further improve the products with other additives like scents and saffron before packing it in small packages for wholesale and retail, with their brand.

Therefore, it is prayed that this Authority may be pleased to pass its ruling with respect to the following:

a) Roasted Areca Nuts is classifiable under CTH 2008 19 20 and eligibility of the List 5 of Notification No.26/2000-Cus dated 01.03.2000 and SI. No. 172 of Notification No. 46/2011-Cus dated 01.06.2011 for import of roasted Areca nuts.

b) Roasted Cashews is classifiable under CTH 2008 19 10 and eligibility of the SI. No. 172 of Notification No. 46/2011-Cus dated 01.06.2011 for import of roasted and salted cashew nuts.

c) Menthol Scented Sweet Supari is classifiable under CTH 2106 90 30

2. In terms of provisions of the Section 28-1 (1) of the Customs Act, 1962 read with Sub-Regulation no. (7) of the Regulation no. 8 of the Customs Authority for Advance Rulings Regulations, 2021, on the receipt of the said application, office of the CAAR, Mumbai forwarded copy of the said application/submissions to the concerned Jurisdictional Customs Commissionerate i.e. The Commissioner of Customs (Import), Chennai, Tuticorin and JNCH as submitted by the applicant calling upon them to furnish the relevant records with comments, if any, in respect of said application. Accordingly, the comments were received form the Commissioner of Customs (Import), Chennai and Tuticorin.

2.1 The comments received from the Commissioner of Customs, Custom House, Chennai are as following:

2.1.1 The applicant M/s. Harnath Stock Huts is proposing import of following goods under Customs Tariff Item No. 20081910, 2008 1920 and 21069030 of the First Schedule of the Customs Tariff Act, 1975 and produced statement of relevant facts having bearing on the question raised and statement containing applicant's interpretation of law. The list of the proposed goods is tabulated below:

2.1.2 M/s. Harnath Stock Huts has sought advance ruling from CAAR, Mumbai on the question of classification of Oven Roasted Areca nuts under CTI 20081920, and Oven Roasted and/or Salted Cashew nuts under 20081910 and Menthol Scented Sweet Supari in 21069030.

2.1.3 CLASSIFICATION OF ROASTED CASHEW NUT:

In view of the contentions of the department, general rules of interpretation and specific remarks made at concerned para, classification of Roasted Cashew Nut is based on the packaging conditions. If the impugned goods are packed in airtight packs or containers as per food industry and common commercial practice, with proper roasting attested by the CRCL, the goods are classified as follows:

2.1.4 It is further informed that DGFT vide Notification No. 59/2015-2020 dated 21.02.2023 has imposed MIP on Cashew Kernel (Broken) under CTI 0801 3210 and Cashew Kernel (Whole) under CTI 0801 3220 as Rs.680/-per Kg and Rs.720/- per Kg respectively. However, certain unscrupulous Importers are importing the Roasted Cashew Nut under CTI 2008 1910, by under-invoicing, wherein they declared unit price is abysmally low even from the raw material (Cashew Kernel Broken/Whole). The Roasted Cashew Nut being undergone higher degree of processing should logically have higher Import Price than the Cashew Kernel.

2.1.5 One such Bill of Entry No. 7391366 dated 21.12.2024 filed by Importer M/s.Trinity Agro Products was handled by this Office in Faceless Assessment, wherein the Virtual Assessment Officers have raised queries regarding the valuation. However, the Importer have not justified the declared unit price with supporting documents. In this connection, the Bill of Entry was pushed to Port of Assessment Group for in-depth scrutiny/investigation of CTH and Valuation as per CVR, 2007.

2.1.6 However, based on a comprehensive analysis of the HS structure, legal notes, and interpretative rules, the appropriate classification for Oven Roasted Cashew Nuts is as follows:

Provided the classification of Roasted Cashew Nut under CTI 2008 1910 is based on the packaging conditions i.e., the impugned goods are packed in airtight packs or containers as per food industry and common commercial practice, with proper roasting attested by the CRCL. Further, provided that the Jurisdictional Commissionerate may verify the declared value of Roasted Cashew Nuts under CTI 2008 1910 is above the MIP prescribed for Cashew Kernels. This classification is in compliance with principle of specificity. Import Policy and CVR, 2007.

2.1.7 Further, the Importer have proposed for availing CoO benefit under Notification No..46/2011-Cus and Notification No. 26/2000-Cus dated 01.03.2000.

i. In this regard, it is informed that preferential BCD under Notification No. 46/2011-Cus, is subject to the importer proving to the satisfaction of the Deputy Commissioner of Customs or Assistant Commissioner of Customs, as the case may be, that the goods in respect of which the benefit of this exemption is claimed are of the origin of the countries as mentioned in Appendix I or Appendix II of the said Notification, in accordance with provisions of the Customs Tariff [Determination of Origin of Goods under the Preferential Trade Agreement between the Governments of Member States of the Association of Southeast Asian Nations (ASEAN) and the Republic of India) Rules, 2009, published in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 189/2009-Customs (N.T.), dated the 31st December 2009 and in terms of the Customs (Administration of Rules of Origin under Trade Agreements) Rules, 2020.

ii. Further, preferential BCD under Notification No. 26/2000-Cus dated 01.03.2000, is subject to the importer proving to the satisfaction of the Deputy Commissioner of Customs or the Assistant Commissioner of Customs, as the case may be, in accordance with the Customs Tariff (Determination of Origin under the Free Trade Agreement between the Democratic Socialist Republic of Sri Lanka and the Republic of India) Rules, 2000 published with the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 19/2000-Customs (N.T), dated the 1st March, 2000 that the goods in respect of which the benefit of this exemption is claimed are of the origin of Sri Lanka and in terms of the Customs (Administration of Rules of Origin under Trade Agreements) Rules, 2020.

2.2 The comments received from the Commissioner of Customs, Custom House, Tuticorin are as following:

    OVEN ROASTED AND SALTED CASHEW NUTS IMPORTED FROM VIETNAM, THAILAND AND MALAYSIA

2.2.1 Roasted cashew nuts are specifically covered under the specific entry CTI 20081910 Cashew nut, roasted, salted or roasted and salted. Cashew nut kernels are covered under CTI 080132, when they are /aren't moderately heat treated. Thus, the subject goods ''Roasted cashew nuts'' are rightly classifiable under the specific entry CTI 20081910. Goods classifiable under CTH 200710 to 200820 are eligible for the benefit of duty exemption under Sl.No.172 of the Notification No. 46/2011-Cus dated 01.06.2011 as amended.

2.3 The comments received from the Commissioner of Customs, Custom House, JNCH Nhava Sheva are as following:

2.3.1 M/s Harnath Stock Huts, has submitted an application before the Customs Authority for Advance Rulings (CAAR), Mumbai seeking clarification on the correct tariff classification of roasted cashew nuts.

2.3.2 The applicant intends to import these products from Vietnam, Thailand and Malaysia.

2.3.3 The classification of this product is critical as it determines the applicable customs duty and compliance requirements under the Customs Tariff Act, 1975. The applicant has proposed classifications based on the General Rules of Interpretation (GRI), World Customs Organization (WCO) Explanatory Notes, and previous judicial decisions. A detailed analysis of the applicant's claims has been conducted, and it is observed that their proposed classifications appears to be legally justified and consistent with prior rulings

2.3.4 Regarding roasted cashew nuts, the applicant has proposed classification under HS 20081910, stating that the process carrying out on the imputed goods includes the following steps:-preheat the oven to 350 degrees, line a rimmed baking sheet with parchment paper or foil for easy clean up, add cashews in a single layer and roast for 10-15 minutes.

2.3.5 Chapter 20 of the Customs Tariff Act covers preparations of fruits and nuts that are otherwise processed beyond drying or simple preservation.

2.3.6 Judicial precedents, including the Supreme Court decision in Commissioner of Customs & CCE, Goa vs. Phil Corporation Ltd. (2008 (223) ELT 9 SC), have established that roasted nuts do not fall under Chapter 8 and must be classified under Chapter 20.

2.3.7 The WCO Explanatory Notes to HS 2008 further clarify that dry-roasted, oil-roasted, and fat-roasted nuts belong under this heading.

2.3.8 Additionally, in CCE, Chennai vs. Shahnaz Commodities International [2023 (386) ELT 214), the court ruled that roasting is distinct from boiling and drying, necessitating classification under Chapter 20.

2.3.9 The applicant has also submitted that for identical products namely Roasted Cashews, the honourable authority under GST, Kerala vide ruling no. KER/112/2021 dated 26.05.2021 vide ruling No. KER/113/2021 dated 26.05.2021 had held that the product is classifiable under CTH 20081910.

2.3.10 Based on these legal provisions and judicial precedents, it appears that roasted cashew nuts should be classified under HS 20081910.

2.3.11 In light of the above analysis, it appears that the classifications proposed by the applicant align with the Customs Tariff Act, WCO Explanatory Notes, and relevant judicial rulings..

2.3.12 Roasted cashew nuts fall under HS 20081910 as roasting is a preparation process explicitly covered under Chapter 20.

3. Records of Personal Hearing:

Personal hearing was held through virtual mode on 24.04.2025 and 01.05.2025. The authorized representative
of the applicant, Shri Derrick Sam, learned advocate appeared online through virtual hearing. He submitted that there are three import items/commodities are involved in the application for which the classification under Customs Tariff Act, 1975 is sought, which are as follows:

(i) For Roasted Cashew nuts classification is claimed under CTI 20081910.

(ii) As regards to classification of Menthol Scented Sweet Supari, classification is sought under CTI 21069030. The learned advocate relied upon the case of M/s AK Impex, upheld by Hon&39;ble Chennai High Court.

(iii) He further submitted that the Roasted Areca nut/ betel nut merits classification under CTI 20081920 and that the CAAR, Mumbai has already decided a number of cases in which same classification is followed and in the case of M/s. Shahnaz & other the ruling is upheld by Hon'ble Chennai High Court.

The learned Advocate categorically expressed that the matter of classification of Roasted Arecanuts has already been decided in the referred judgement passed by Hon'ble Madras high court vide its order dated 01.08.2023 in the matter of The Commissioner of Customs, Chennai II Commissionerate Vs M/s Shahnaz Commodities International P. Ltd., M/s. Neena Enterprises and M/s Universal Impex cited supra and this is an identical case.

3.1 The learned advocate further reiterated the submissions made by the applicant that the import goods i.e. ''Menthol Scented Supari'' merit classification under CTI 21069030 of the Customs Tariff Act, 1975. However, during the Personal Hearing it has been informed him that the issue involved in an identical/similar matter is currently stayed by the Hon'ble High Court in the case of M/s Bag Industries and in terms of provisions of Section 28 1(2) of the Customs Act, 1962 and by following the judicial discipline, the ruling cannot be issued on the classification of the same as the matter is still sub- judice before Hon'ble Delhi High Court.

Discussions and Findings:

4. I have gone through the all the facts and materials placed before me in respect of the subject goods. Therefore, I proceed to pronounce a ruling/order on the basis of the information available on record as well as existing legal provisions.

4.1 At the outset, I find that the issue raised in these application pertains to classification of goods and duly covered under Section 28H(2) of the Customs Act, 1962.

5. I observe here that as far as the classification sought for roasted arecanuts is concerned, It is pertinent to note that the Hon'ble High Court of Madras in a very relevant judgement dated 01.08.2023 in the Civil Miscellaneous Appeal (CMA) No's 600/2023. No. 1206/2023 and No 1750/2023, in the matter of The Commissioner of Customs, Chennai II Commissionerate Vs M/s Shahnaz Commodities International P. Ltd., M/s. Neena Enterprises and M/s Universal Impex, upheld the rulings passed by this authority by approving the classification of Roasted Betel Nuts/ Areca Nuts under CTI 20081920,

5.1 The Hon'ble High Court went on to analyse the various aspects in determining classification and summed up that:

(a) Roasting is a process treated to be distinct from the process of boiling and drying, in fixing the classification in respect of betel/areca nut under CTH.

(b) Roasted betel/areca nut having been specifically classified under CTH 20081920, the attempt to classify under CTH 080280 would fall foul of the settled rule of classification that specific entry would prevail over general entry

(c) HSN Explanatory Notes are normally a safe guide in determining classification under CTH Roasted areca / betel nut having been mentioned in CTH 20081920 under HSN

(d) When there is a specific entry covering a product/commodity, the test of common parlance is irrelevant in determining classification.

(e) There is considerable force in the submission that the classification as far as possible must be in conformity and in consonance with the HSN Explanatory Notes.

5.2 It is pertinent to mention here the relevant excerpts of subsection (2) of section 28-1 of Customs Act, 1962 is produced below:

''(2) The Authority may, after examining the application and the records called for, by order either allow or reject the application;

Provided that the Authority shall not allow the application where the question raised in the application is,-

(a) already pending in the applicant's case before any officer of customs, the Appellate Tribunal or any Court;

(b) same as in a matter decided already by the Appellate Tribunal or any Court.''

5.3 This Authority as well as CAAR, Delhi have already issued multiple rulings in a sizeable number of applications intending import of the subject 'Roasted Areca Nuts' through various major/minor ports/Inland container Depots, spread across the country. The all such rulings are based on the same matter as upheld by the Hon'ble High Court of Madras in its order dated 01.08.2023 and is heavily relied upon by the applicant itself.

5.4 In the instant case the question seeking classification of Roasted Arecanuts is identical/similar one and I
observe that 'No new facts' have been put forth by the applicant before this authority to re-examine the classification.

5.5 In view of the forgoing facts and records of the case I hereby observe and hold that the question raised in this very application seeking classification of roasted arecanuts, has already been decided by Hon'ble High Court of Madras in its order dated 01.08.2023 (cited as above), therefore, in accordance with the provisions of Section 28-1, sub-section (2); and proviso (b) of the first proviso of sub-section (2) of section 28-1 of Customs Act, 1962,1 decide 'not to allow' the application in the matter of the classification of roasted arecanuts..

6. As far as the classification sought for Menthol Scented Sweet Supari is concerned, It is pertinent to mention that a ruling passed by this authority in a similar/identical matter in the case of M/s Bag Industries is pending before Hon'ble Delhi High Court and operation of the said ruling has been stayed by the order dated 23.09.2024.

6.1 Here, I am of the view that since the question raised in this very application seeking classification of Menthol Scented Sweet Supari on the similar/identical matter is pending before Hon'ble Delhi High Court and the operation of the ruling passed by this authority has been stayed by the Order dated 23.09.2024, fresh ruling cannot be issued. Accordingly, considering the provisions of Section 28-1, sub-section (2) of Customs Act, 1962 and binding judicial discipline, I decide to refrain from passing any ruling on classification of Menthol Scented Sweet Supari. However, the applicant will have liberty to approach this authority after the matter is finally decided by Hon'ble Court.

7. Further, as far as the classification sought on Roasted and/or Salted Cashew nuts (hereinafter referred to as the subject goods) are concerned, it is observed that there are certain processes which are undertaken to get the subject goods roasted and arising product is distinct from the raw ones. Roasting and drying are not one and same processes and there is a sharp change in the moisture level, colour, appearance, flavour etc when the process of roasting is undertaken. Needless to say that in the market and trade also, Roasted and/or Salted Cashew nuts are a well-known product and in common parlance it is recognised/selled/purchased and understood as roasted cashew nuts roasted or slated itself. The Customs Tariff Act, nowhere defines the process of roasting, but CTI 20081910 specifically covers roasted cashew nuts, roasted, salted or roasted and salted.

8. Further, it is evident from the processes specified in Chapters 7, 8 or 11 which mainly include freezing, steaming, boiling, drying, provisionally preserving and milling, thus, any vegetable, fruit, nut or edible parts of a plant which is prepared or preserved by any ''other process'' than these are liable to be classified under Chapter 20. Heading 2008 covers Fruit, nuts and other edible parts of plants, otherwise prepared or preserved, whether or not containing added sugar or other sweetening matter or spirit, not elsewhere specified or included. Roasting is a process used for bringing in to existence roasted nuts and the processes mentioned in chapter 8 do not cover roasting process.

9. Further, relevant portion of the Heading 2008 is reproduced as under for ready reference:

2008                     Fruit, Nuts and other edible parts of plants, otherwise prepared or preserved,
                            whether or not containing added sugar or other sweetening matter or spirit, not elsewhere
                            specified or included

                    -    Nuts,ground- nuts and other seeds, whether or not mixed together :

2008 11 00    -    Ground-nuts

2008 19         -     Other, including mixtures:

2008 19 10     -     Cashew nut, roasted, salted or roasted and salted

2008 19 20     —   Other roasted nuts and seeds

2008 19 30     —    Other nuts, otherwise prepared or preserved

2008 19 40     —    Other roasted and fried vegetable products

2008 19 90     —    Other

2008 20 00     -        Pineapples

2008 30             -     Citrus fruit:

2008 30 10     —     Orange

2008 30 90    —     Other

10. It can be seen from the above Tariff arrangement that the goods i.e. cashew nuts, roasted, salted or roasted and salted has specific entry in the Customs Tariff as CTI 2008 1910. The case laws relied upon by the applicant regarding classification of roasted cashew nuts is also relevant to arrive at the correct classification of the same.

11. In the case of Commissioner of Central Excise v. Wockhardt Life Sciences Ltd. (2012 (277) E.L.T 299 (S.C.), it was held that "Classification of goods-Determination of- it cannot be under residuary entry in presence of specific entry, even if it require product to be understood in technical sense-Residuary entry can be taken refuge of only in absence of specific entry".

12. In the case of Western India Plywoods Ltd. v. Collector of Customs, Cochin (2005 (188) E.L.T. 365 (S.C.)) it was held that "Classification of goods-application of residuary entry to be made with extreme caution, being attracted only when no other provision expressly or by necessary implication applies to goods in question ".

13. Heading 2008 covers 'FRUIT, NUTS AND OTHER EDIBLE PARTS OF PLANTS. OTHERWISE PREPARED OR PRESERVED. WHETHER OR NOT CONTAINING ADDED SUGAR OR OTHER SWEETENING MATTER OR SPIRIT, NOT ELSEWHERE SPECIFIED OR INCLUDED'. It is quite obvious that the subject goods is question i.e. ''is an edible parts of the plant''.

13.1 Explanatory notes to heading explain that this heading covers fruit, nuts and other edible parts of plants, whether whole, in pieces or crushed, including mixtures thereof, prepared or preserved otherwise than by any of the processes specified in other Chapters or in the preceding headings of this Chapter. :

The explanatory notes further explain that this heading inter alia included: Almonds, groundnuts, areca (or betel) nuts and other nuts, dry- roasted, oil- roasted or fat- roasted, whether or not containing or coated with vegetable oil, salt, flavours, spices or other additives.

14. Further, the Importer have proposed for availing Country Of Origin benefit under Notification No. 46/2011-Cus and Notification No. 26/2000-Cus dated 01.03.2000.

14.1 I observe here that the preferential BCD under Notification No. 46/2011 -Cus, is subject to the importer proving to the satisfaction of the Deputy Commissioner of Customs or Assistant Commissioner of Customs, as the case may be, that the goods in respect of which the benefit of this exemption is claimed are of the origin of the countries as mentioned in Appendix I or Appendix II of the said Notification, in accordance with provisions of the Customs Tariff Determination of Origin of Goods under the Preferential Trade Agreement between the Governments of Member States of the Association of Southeast Asian Nations (ASEAN) and the Republic of India] Rules, 2009, published in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 189/2009-Customs (N.T.), dated the 31st December 2009 and in terms of the Customs (Administration of Rules of Origin under Trade Agreements) Rules, 2020.

14.2 Further, preferential BCD under Notification No. 26/2000-Cus dated 01.03.2000, is subject to the importer proving to the satisfaction of the Deputy Commissioner of Customs or the Assistant Commissioner of Customs, as the case may be, in accordance with the Customs Tariff (Determination of Origin under the Free Trade Agreement between the Democratic Socialist Republic of Sri Lanka and the Republic of India) Rules, 2000 published with the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 19/2000-Customs (NT), dated the 1st March, 2000 that the goods in respect of which the benefit of this exemption is claimed are of the origin of Sri Lanka and in terms of the Customs (Administration of Rules of Origin under Trade Agreements) Rules, 2020.

15. On the basis of foregoing discussions and findings, I conclude that the subject goods i.e. ''Roasted and/or Salted Cashew nuts'' merit classification under Custom Tariff Heading 2008, specifically under CTI 20081910 of Chapter 20 of the First Schedule to the Customs Tariff Act, 1975.

16. In view of above facts, legal provisions and circumstances of the case my views are expressed as per follow-

Question 1. Whether Roasted Areca Nuts is classifiable under CTH 2008 19 20 and eligibility of the List 5 of Notification No.26/2000-Cus dated 01.03.2000 and SI. No. 172 of Notification No. 46/2011-Cus dated 01.06.2011 for import of roasted Areca nuts.

Answer. Classification is already decided as explained in foregoing paras. I refrain from passing ruling on the subject.

Question 2. Whether Roasted Cashews is classifiable under CTH 2008 19 10 and eligibility of the SI. No. 172 of Notification No. 46/2011-Cus dated 01.06.2011 for import of roasted and salted cashew nuts.

Answer. ''Roasted and/or Salted Cashew nuts'' merit classification under Custom Tariff Heading 2008, specifically under CTI 20081910 of Chapter 20 of the First Schedule to the Customs Tariff Act, 1975. The exemption notification is applicable subject to production of valid documentary evidence as explained in Para 14.1 and 14.2 above.

Question 3. Whether Menthol Scented Sweet Supari is classifiable under CTH 2106 90 30 Answer. As the matter is subjudice before Hon'ble Delhi High Court, as explained in foregoing paras, I refrain from passing any order.

17. Application is disposed of in terms of above.

(Prabhat K. Rameshwaram)                 
Customs Authority for Advance Rulings, Mumbai

F. No. CAAR7CUS/APPL/174,27,28/2024-O/o Commr-CAAR-Mumbai             Dated: 16-06-2025

This copy is certified to be a true copy of the ruling and is sent to:

1. M/s. Harnath Stock Huts,
Flat No. 26, Vadakuthu Panchayat, Neyveli Plaza
Road, Kurunjipadi Taluk, Cuddalore, Tamil Nadu-
607308 Email- hamath5555@gmail.com

2. The Commissioner of Customs, Chennai-II (Import), Customs
House, 60, Rajaji Salai, Chennai- 600001
Email- chennai-importoffice@gov.in
cominr2-ciischn@gov.in

3. The Commissioner of Customs, Custom
House, New Harbour Estate,
Tuticorin-628004.
Email.- edi.tuticorincustoins@gmail.com

4. The Commissioner of Customs,
Nhava Sheva(General),
JNCH, Nhava Sheva, Uran
Raigad-400707.
Email.- commr-nsgen@gov.in

5. The Customs Authority for Advance Rulings,
Room No. 24, New Customs House,
Near IGI Airport, New Delhi-11003 7. Email:
cus-advnilings.del@gov.in

6. The Principal Chief Commissioner of Customs, Mumbai Customs Zone-I, Ballard Estate,
Mumbai -400001. Email:ccu-cusmum1@nic.in

7. The Commissioner (Legal), CBIC Offices,
Legal/CX.8A, Cell, 5 th floor, Hudco Vishala Building,
C-Wing, Bhikaji Cama Place, R. K. Puram, New Delhi -
110066. Email: commr.legal-cbec@nic.in

8. The Member (Customs), Central Boards of Indirect Taxes & Customs, North Block, New Delhi-110001 ..Email:mem.cus-cbec@nic.in

9. The Webmaster, Central Boards of Indirect Taxes & Customs.
Email:webmaster.cbce@icegatc.gov.in

10. Guard file.

(Vivek Dwivedi)           
Dy. Commissioner & Secretary
Customs Authority for Advance Rulings.
Mumbai