Case Law Details
In re AM Trading (CAAR Mumbai)
Roasted Areca Nut Classification Advance Ruling Application Disallowed Under Section 28I(2)(b): CAAR Mumbai
M/s. AM Trading filed an application before the Customs Authority for Advance Ruling (CAAR), Mumbai under Section 28H(1) of the Customs Act, 1962 seeking an advance ruling on the classification of “Roasted Areca Nuts (Whole & Cut)” under the First Schedule to the Customs Tariff Act, 1975 and on eligibility for concessional duty under Notification No. 46/2011 dated 01.06.2011. The applicant proposed to import roasted areca nuts from Burma, Indonesia and Sri Lanka.
The applicant submitted that roasted areca nuts are classifiable under HS Code 2008 1991 as roasted nuts under Chapter Heading 2008. It contended that the proposed goods were specifically covered by Tariff Item 2008 1991 by virtue of the roasting process as reflected in the HSN Explanatory Notes. The applicant also relied upon several judicial decisions to submit that HSN Explanatory Notes are a dependable guide for classification of goods.
Pursuant to Section 28I(1) of the Customs Act, 1962 and the Customs Authority for Advance Rulings Regulations, 2021, CAAR forwarded the application to the Commissioner of Customs, Tuticorin and the Commissioner of Customs, Chennai-II (Import), seeking comments and relevant records through communications dated 17.04.2026, 13.05.2026, 01.06.2026 and 30.06.2026. No reply was received from either jurisdictional Commissionerate.
A personal hearing was held on 03.06.2026. The applicant’s representative reiterated the claim that the imported roasted areca nuts should be classified under HS Code 20081991. No representative appeared on behalf of the department.
While considering the application, CAAR referred to Section 28I(2) of the Customs Act, 1962, particularly the proviso to clause (b), which provides that the Authority shall not allow an application where the question raised is the same as in a matter already decided by the Appellate Tribunal or any Court.
CAAR observed that the precise issue relating to the classification of roasted areca/betel nuts had already been adjudicated by the Madras High Court in its judgment dated 01.08.2023 in Civil Miscellaneous Appeal Nos. 600/2023, 1206/2023 and 1750/2023, and in W.A. Nos. 3647 and 3648 of 2024, where the ruling of the Authority had been upheld. The Authority further noted that both CAAR Mumbai and CAAR Delhi had already issued multiple rulings concerning imports of roasted areca nuts through various ports across the country, all based on the same issue upheld by the Madras High Court. It found that the present application raised an identical issue.
Accordingly, CAAR held that the statutory bar contained in the proviso to Section 28I(2)(b) of the Customs Act, 1962 squarely applied, as the question raised by the applicant had already been decided by a Court.
Regarding the applicant’s query on the applicability of the concessional rate of duty under Serial No. 172 of Notification No. 46/2011 dated 01.06.2011, as amended by Notification No. 41/2019-Cus dated 31.12.2019, CAAR observed that eligibility to an exemption notification is required to be determined strictly in accordance with the notification, the relevant tariff entry and the prescribed conditions. It further observed that exemption notifications are to be interpreted strictly, that the burden of establishing eligibility lies on the claimant, and that the applicable rate of duty and eligibility conditions are those prevailing on the date of import.
CAAR also observed that no new facts had been presented by the applicant to warrant a fresh determination of the classification issue. Although the earlier High Court decision did not arise from the applicant’s own case, the Authority held that the matter clearly fell within Section 28I(2)(b) of the Customs Act, 1962.
The Authority therefore disallowed the application and disposed of the matter.
Cases Discussed:
- Commissioner of Customs, Chennai-II Commissionerate Vs M/s Shahnaz Commodities International P. Ltd. and M/s Universal Impex & M/s. Neena Enterprises in W.A. Nos. 3647 & 3648 of 2024.
- Commissioner of Customs, Chennai-II Commissionerate Vs M/s Shahnaz Commodities International P. Ltd. and M/s Universal Impex & M/s. Neena Enterprises, Civil Miscellaneous Appeal Nos. 600/2023, 1206/2023 and 1750/2023 (Judgment dated 01.08.2023).
FULL TEXT OF THE ORDER OF CUSTOMS AUTHORITY OF ADVANCE RULING, MUMBAI
M/s. AM Trading (IEC No.: FFCPK3155N) (hereinafter referred to as ‘the Applicant’) filed an application (CAAR-1) for advance ruling in the Office of Secretary, Customs Authority for Advance Ruling (CAAR) Mumbai. The said application was received in the secretariat of the CAAR, Mumbai on 07.04.2026 along with its enclosures in terms of Section 28H(1) of the Customs Act, 1962 (hereinafter referred to as ‘the Act’ also). The Applicant is seeking advance ruling on the issue of classification of the “Roasted Areca Nuts (Whole & Cut)” under the First Schedule of the Customs Tariff Act, 1975 and eligibility for concessional duty benefits under Notification No. 46/2011 dated 01.06.2011.
Submission by the Applicant:
1 The applicant submitted that they are a firm in the name and style of M/s. AM Trading (IEC No.: FFCPK3155N). They intend to import “Roasted Areca Nuts (Whole) And Roasted Areca Nuts Cut” from Burma, Indonesia, Sri Lanka. As per the present scheme of Classification of commodities under the Customs Tariff Act, 1975, Fruits, Nuts and other edible parts of plants are classified under the Chapter Heading 2008 and other roasted nuts are particularly and specifically classified under the Tariff Item 2008 1991.
2.2 The Applicant submitted that the proposed item to be imported are roasted betel nut/ areca nuts (whole/cut) and are classifiable under the HS Code 2008 1991 by virtue of mere roasting as clearly given in the HSN Explanatory Note by the product name. The Applicant further submitted several case law citations wherein the Hon’ble Supreme Court has decided and reiterated that the HSN Explanatory Note is the safe and dependable guide in the matters of classification of items.
3. Port of Import and reply from Jurisdictional Commissionerate
3.1 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. (1) The Commissioner of Customs, Custom House, New Harbour Estate, Tuticorin 628004 and (2) The Commissioner of Customs, Chennai —II (Import), Custom House, No. 60 Rajaji Salai Chennai — 600001 calling upon them to furnish the relevant records with comments, if any, in respect of said application on 17.04.2026, 13.05.2026, 01.06.2026 and 30.06.2026. However, no reply has been received from Jurisdictional Commissionerate till date.
4. Records of Personal Hearing
4.1 A personal hearing to applicant was issued to the applicant to be present on 03.06.2026 at 04.:00 PM. The applicant’s representative on the said date of hearing reiterated his stand on his arguments for claim on classification of imported goods ‘Roasted Areca Nuts’ in HS Code 20081991.
Nobody appeared for PH from the department side.
5. Discussions and Findings:
5.1 As the applicant cited that the issue had already been decided by the Hon’ble High Court in which ruling of the authority was upheld. In this backdrop, the relevant excerpts of sub section (2) of section 281 of the Customs Act, 1962 is important, which 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 8*** 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:”
6. In the present case, the precise issue relating to the classification of roasted areca/betel nuts has already been adjudicated by the Hon’ble High Court of Madras in a judgement dated 01.08.2023 in the Civil Miscellaneous Appeal (CMA) Nos 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. and M/s Universal Impex & M/s. Neena Enterprises in W.A. Nos. 3647 & 3648 of 2024 in which the ruling passed by the authority was upheld.
7. 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 cited above. In the instant case also the issue is identical/similar one.
8. Accordingly, I find that the question raised by the applicant is identical to one already decided by a Court, and the statutory bar contained in the proviso to Section 28-1(2)(b) of the Customs Act, 1962 squarely applies.
9. Further, with regard to applicability of concessional rate of duty under Sr. No. 172 of Notification No. 46/2011 Dated 01.06.2011 as amended by the Notification No. 41/2019-Cus dated 31.12.2019 in respect of the impugned goods i.e. “Roasted Areca Nut/Betel Nut”, it is observed that eligibility to an exemption notification is required to be determined strictly in terms of the notification, read with the relevant tariff entry and conditions prescribed therein. It is a settled position of law that exemption notifications are to be interpreted strictly, and the burden to establish eligibility lies upon the claimant. Exemption notifications are subject to amendment by the Government from time to time, and the applicable rate of duty and eligibility conditions are those prevailing on the date of import.
10. In view of the forgoing facts and records of the case, I hereby observe and hold that the question raised in this very application has already been decided by Hon’ble High Court of Madras in its order dated 01.08.2023 (cited as above), and I also observe that no new facts have been put forth by the applicant before this authority to decide the classification.
11. Though question of classification of Roasted Areca Nut decided by Hon’ble High Court of Madras dated 01.08.2023 is not in case filed by Applicant himself, however, as per records perused and facts produced before me, it is seen that the matter abundantly falls under Section 28 I (2) (b) of the Customs Act, 1962 and said provision can be safely applied to application and question raised there off.
12. Therefore, the application is hereby disallowed and disposed of accordingly.
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