In re Wood Tech Industries (CAAR Delhi)
In the case of In re Wood Tech Industries, the Customs Authority of Advance Ruling (CAAR), Delhi, reviewed the classification of “Roasted Areca Nuts (Whole, Split, and Cut)” under the Customs Tariff Act, 1975. The applicant, Wood Tech Industries, sought clarification on whether these roasted areca nuts should be classified under Chapter Heading 2008 1920. The applicant argued that the roasting process, which involves repeated cycles of heating and cooling at high temperatures, fundamentally alters the chemical composition and physical characteristics of the nuts, making them distinct from raw or dried areca nuts classified under Chapter 8. Roasted areca nuts are suitable for direct consumption and undergo a high-heat treatment, unlike the moderate heat treatment or preservation methods covered in Chapter 8. Citing the Harmonized System Nomenclature (HSN) explanatory notes, the applicant contended that roasted nuts, including areca nuts, fall under Chapter 2008 due to the specific process of dry roasting. The ruling reaffirmed this classification, distinguishing roasted nuts as a separate product from raw or dried areca nuts.
FULL TEXT OF THE ORDER OF CUSTOMS AUTHORITY OF ADVANCE RULING, DELHI
The Applicant is a partnership concern having two partners namely Sh. Vinod Aggarwal and Sh. Mithun Kumar. The Applicant wants to import/export the goods and for this purpose, is having I EC AAEFW4396B. The Applicant is also registered with GST department having registration no. 01AAEFW4396B1ZF. That the Applicant intends to import “Roasted Areca Nuts (Whole), Roasted Areca Nuts (Split) and Roasted Areca Nuts (Cut)” from outside India. The Applicant is filing the present application seeking proper clarification regarding classification of goods. That the processes carried out to manufacture “Roasted Areca Nuts” are as under: a) De-husking the raw areca nut and drying the same b) Above areca nuts are put into oven for roasting. Areca nuts are roasted at temperature ranging around 1500 degree. Roasting is done using firewood/palm kernel based oven in need roasting machine under the temperature of flames around 600 Degree Celsius; c) After roasting in oven, areca nuts are taken out from oven and left open in room temperature; d) Again areca nuts are put in oven for roasting. The said process takes place again and again until water contents goes below 6%; e) Fresh areca nut is repeatedly heated, roasted and cooled to ensure higher quality. Roasting time is around 2-3 days; f) Thereafter, polishing process takes place and thereafter packaging of roasted areca nut.
