CAAR Disallows Roasted Areca Nut Ruling as HC Already Decided Issue

By CA Sandeep Kanoi Custom Duty Judiciary October 7, 2026

TaxGuru Citation: 2026 taxguru.in 14874
Case Name: In re Melfa Trading Impex Private Limited (CAAR Mumbai)
Appeal Number: Only available for paid members
Date of Judgement/Order: Only available for paid members
Courts: CAAR, Mumbai CAAR

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In re Melfa Trading Impex Private Limited (CAAR Mumbai)

Summary: The Customs Authority for Advance Rulings, Mumbai disallowed the applications of Melfa Trading Impex Private Limited seeking a ruling on the classification of “Oven Roasted Areca Nuts” and eligibility for exemption from Basic Customs Duty under Sl. No. 172 of Notification No. 46/2011-Customs dated 1 June 2011. Three applications were received on 7 May 2026 for proposed imports from ASEAN Member States. The applicant claimed classification under tariff item 2008 19 91, corresponding to the former entry 2008 19 20, relying on its roasting process, HSN Explanatory Notes, earlier advance rulings and judicial decisions. It described repeated heating, roasting and cooling over two to three days, reducing moisture content below 10%. Chennai-II Customs contested the claim, arguing that moisture reduction alone did not establish roasting and that actual goods required laboratory testing to distinguish roasted nuts from dried or moderately heat-treated areca nuts.

The applicant reiterated its written submissions and declined a personal hearing. CAAR held that the precise classification question had already been adjudicated by the Madras High Court in Commissioner of Customs v. Shahnaz Commodities International Pvt. Ltd. and connected matters on 1 August 2023, subsequently considered in W.A. Nos. 3647 and 3648 of 2024. No materially distinguishing facts warranted a fresh ruling. Section 28-I(2)(b) applied even though the earlier court decision did not concern this applicant. On the claimed duty concession, CAAR stated that eligibility must be established against the relevant tariff entry, notification conditions and legal position on the import date. Accordingly, the applications were disallowed and disposed of.

Cases Discussed

1978 AIR 945 — Alladi Venkateswarlu v. Government of Andhra Pradesh (Supreme Court) — Applicant cited the commonly accepted meaning of descriptions of food articles.
2003 (152) E.L.T. 3 (SC) — G.S. Auto International Ltd. v. Collector of C.Ex., Chandigarh (Supreme Court) — Applicant relied on the commercial-identity test for classification.
1989 (40) E.L.T. 214 — Jaishri Engineering Co. (P) Ltd. v. Collector of Central Excise (Supreme Court) — Referred to through G.S. Auto International in the applicant’s submissions on commercial identity.
1996 (87) E.L.T. 321 (SC) — Purewal Associates Limited v. Collector (Supreme Court) — Referred to through G.S. Auto International on commercial identity.
1991 (51) E.L.T. 161 (SC) — Plasmac Machine Mfg. Co. Pvt. Ltd. v. Collector of Central Excise (Supreme Court) — Referred to through G.S. Auto International on commercial identity.
United Offsets Process Pvt. Ltd. v. Assistant Commissioner of Customs (Supreme Court) — Applicant relied on trade or popular meaning where the enactment supplies no definition.
In re Shahnaz Commodities International Pvt. Ltd. (CAAR Mumbai) — Applicant relied on classification of whole and cut roasted areca nuts under CTH 2008 19 20.
C.M.A. Nos. 600, 1206 & 1750 of 2023; judgment dated 01.08.2023 — Commissioner of Customs, Chennai-II v. Shahnaz Commodities International Pvt. Ltd. and connected matters concerning Universal Impex and Neena Enterprises (Madras High Court) — Applicant relied on the classification decision; CAAR treated the already-decided question as attracting Section 28-I(2)(b).
In re Vapa Overseas Pvt. Ltd. (CAAR Delhi) — Applicant cited the ruling for classification of roasted areca/betel nuts under CTH 2008 19 20.
CAAR/DEL/Rawder/55/2024, dated 19.09.2024 — In re Rawder Petroleum Pvt. Ltd. (CAAR Delhi) — Applicant relied on classification of roasted areca nuts, whole, split or cut, under CTH 2008 19 20.
In re Sapphire Trading Corporation (CAAR) — Applicant listed the ruling in support of classification under CTH 2008 19 20.
CAAR/Mum/ARC/89/Mumbai — In re TMK Traders (CAAR Mumbai) — Applicant listed the ruling in support of classification under CTH 2008 19 20.
CAAR/Mum/ARC/39,40&41/2023; source records date 07.12.2022 — In re Universal Impex (CAAR Mumbai) — Applicant relied on classification of identical goods under CTH 2008 19 20; Customs distinguished the factual basis of the earlier ruling.
CAAR/Del/Cuthbert/69/2024 — In re Cuthbert Passion LLP (CAAR Delhi) — Applicant listed the ruling in support of classification under CTH 2008 19 20.
CAAR/Del/Lujec/72/2024 — In re JJLubd Company Ltd. (CAAR Delhi) — Applicant listed the ruling in support of CTH 2008 19 20.
CAAR/Del/Devsar/77/2024 — In re Maa Devsar Traders (CAAR Delhi) — Applicant listed the ruling in support of classification under CTH 2008 19 20.
Writ Tax No. 71 of 2025 with Customs Appeal Nos. 3 of 2024 and 3 of 2025; judgment dated 30.05.2025 — Rawder Petroleum Pvt. Ltd. v. Union of India Ministry of Finance (Allahabad High Court, Lucknow Bench) — Applicant relied on the distinction between roasting and drying, HSN Notes and preference for a specific tariff entry.
W.P. No. 36557 of 2025; order dated 14.10.2025 — Unik Traders v. Commissioner of Customs (Madras High Court) — Customs referred to clearance following the earlier Division Bench decision and stated that a departmental writ appeal challenged the moisture threshold.
W.A. Nos. 3647 & 3648 of 2024; judgment dated 04.03.2025 — Commissioner of Customs v. Universal Impex and Neena Enterprises (Madras High Court) — Referred to as upholding classification under CTH 2008 19 20, corresponding to present CTH 2008 19 91; considered by CAAR in applying the statutory bar.